Coggs Center Redevelopment Secures $2 Million
'Vliet Street Lofts' would include affordable apartments.
Marcia P. Coggs Human Services Center, 1220 W. Vliet St. Photo by Jeramey Jannene.
The $32 million redevelopment of the Marcia P. Coggs Human Services Center into an affordable housing complex secured a key component of its financing package this week.
The Federal Home Loan Bank of Chicago announced Wednesday it was awarding $2 million to support the 65-unit redevelopment effort, known as Vliet Street Lofts.
“Access to affordable housing remains a top priority across Illinois and Wisconsin communities, especially as residents continue to contend with high interest rates, a deficit of housing supply, and increased construction costs. Through [our Affordable Housing Program], we are proud to support our members as they champion organizations that increase options for quality housing for all,” said Michael Ericson, president and CEO, FHLBank Chicago, in a statement announcing the award.
It was part of a $47 million in awards to 35 housing developments. The entity routinely is relied on to help fill financing gaps in Milwaukee area affordable housing developments. Since the end of 2023, FHLBank Chicago reports allocating more than $500 million in grants since 1989.
Federal home loan banks are member-owned corporations chartered by the federal government that provide financing support to housing efforts. The board of the Chicago bank includes UW-Madison real estate professor Mark Eppli, formerly of Marquette Unviersity, Royal Capital Group CEO Kevin Newell and Waukesha State Bank CEO Ty Taylor.
Milwaukee County selected Gorman & Company to redevelop the three-story, 212,000-square-foot structure, 1220 W. Vliet St., after initially planning to demolish the former department store. Using low-income housing tax credits, Gorman would lease units at rates targeted not to exceed 30% of a qualifying household’s income.
The structure was built as a Schuster’s department store in 1910 to Brust & Philipp‘s designs and expanded in 1923. Schuster’s shuttered the store in 1961 and the rest of the Milwaukee-based chain was acquired by Gimbel’s in 1963. It received local historic protection in June.
Milwaukee County acquired the building in 1963 and reconfigured it as a welfare office. It was renamed in 2003 for Marcia P. Coggs, the first African American woman elected to the Wisconsin State Legislature.
Milwaukee County is now building a new Coggs Center immediately to the north, on a former parking lot at 1230 W. Cherry St. That $42 million project, a new home for the Department of Health and Human Services, is expected to open next spring.
The buildings are currently separated from Downtown by Interstate 43, but, prior to the freeway’s construction, Vliet Street was one of the city’s premier shopping streets and an extension of the city’s economic core.
A 2021 county administration report concluded that the county should sell the Coggs Center, as it was becoming a financial liability due to deferred maintenance and the looming departure of its co-tenant, the Wisconsin Department of Health Services. The state agency, which provides access to FoodShare and BadgerCare benefits, relocated in 2022 to leased space several miles northwest.
According to a Wisconsin Historical Society webpage, the property is not listed on either the state or national register of historic places. Register listing does not afford any historic protection, unlike the local designation, but it does make historically-sensitive alterations and renovations eligible for historic preservation tax credits.
Gorman’s financing plan calls for having the building nationally and state listed to be able to access $7.2 million in preservation tax credits. It also would rely on a tax incremental financing district from the City of Milwaukee for $875,000 and American Rescue Plan Act funds from Milwaukee County.
The first floor of the building would include 17,000 square feet of space for the Milwaukee County Behavioral Services and 1,500 square feet of space for a cafe. Underground parking is planned.
Lutheran Social Services of Wisconsin and Upper Michigan is partnering with Gorman on the effort.
Gorman has successfully redeveloped several buildings into affordable housing in Milwaukee and other Wisconsin communities.
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