A contentious proposal to redevelop a historic building to create housing in Milwaukee's industrial-focused Menomonee Valley is moving forward after a "peace treaty" was reached between those in favor of and those opposed to the project
Kendall Breunig of Franklin-based
Sunset Investors wants to convert the 129-year-old building at 324 N. 15th St. into around 40 apartments. However, the proposal was
met with opposition earlier this year from some businesses in the valley, the valley's redevelopment agency Menomonee Valley Partners and Milwaukee's Department of City Development.
Opponents said that housing doesn't fit in with the industrial uses in the surrounding area and could create conflicts between industrial users and new residents, while supporters said the plan is a good opportunity to make use of a property that would otherwise fall further into disrepair.
After months of delays and dialogue — and Breunig's last-ditch effort to find a commercial user for the building proving unfruitful — the project received rezoning approval Tuesday from Milwaukee's Zoning, Neighborhoods and Development Committee.
The committee's decision came after a "peace treaty" was reached, according to Ald. Bob Bauman, which included Bauman agreeing to a separate proposal amending the valley's land use plan to say the rezoning is a one-time exception, after he previously proposed a wider change to that land use plan. That persuaded DCD to support the project.
Further, Breunig and
Menomonee Valley Partners are working on an addition to the future lease agreement with tenants that explains what they should expect when moving into an industrial area, including freight trains and truck traffic, among other things.
"There are legitimate concerns about the long term viability of industrial businesses and the preservation of good manufacturing jobs, but we also very much recognize what it is like for these businesses on St. Paul (Avenue) to live with a building that has been a blight on the city and on their their neighborhood for 40 years," said
Corey Zetts, executive director of Menomonee Valley Partners. "...We found a way to have something that we could all agree to."
Breunig is under contract to purchase the property from its current owner, an affiliate of the Read family. The property has been listed for sale for $1.95 million by
The Barry Co. for more than 20 years, making it the firms longest-listed property, according to
Jim Barry, president of The Barry Co.
Breunig said it's likely that the first floor of the building will be occupied by a retail or office user. He also has interest from a tenant for a roughly 8,000-square-foot commercial building he plans to construct just east of the existing structure. Plans also include building a single-story parking garage east of the existing building.
Apartments in the building would average around 800 to 900 square feet and rents would be roughly $1,200 to $1,500 a month, Breunig said, noting that he has not yet determined the unit mix.
The estimated cost for the project is around $10 million, which Breunig said he will primarily be financing "with cash" because most banks are hesitant to lend to the project.
