Closing 3 TIF districts could add to city’s coffers

    Last updated on May 13th, 2019 at 02:45 pm

    The City of Milwaukee could close out three tax incremental financing (TIF) districts this year, which would add about $65.8 million to the city’s tax base, according to the city’s annual TIF report. For the TIF districts to be closed, the Common Council must give its approval.

    The city currently has 48 TIF districts, which have a total of $878 million in incremental property value. That is about 2.7 percent of the city’s total property value.

    The incremental property value is the amount that the value of the properties in the TIF districts has increased since the districts were created. When a TIF district is created the property tax revenue that goes from properties in the district to local governments is frozen. The property tax revenue from the increased value of those properties (the increment) is used to pay for improvements in the TIF district. Once the improvements are paid for, the TIF is closed and the tax revenue from the increased property value goes to the local governments.

    Therefore, local governments, including the city, county and school district, get a property tax boost when TIF districts are closed.

    The three TIF districts that the city is set to close this year are: the King Drive and Walnut Street TIF; the Calumet Woods TIF; and the Granville Estates/Park TIF.

    The King Drive and Walnut Street TIF was created in 1996 to provide up to $995,000 in low cost loans for retail, office and housing developments in the vicinity of North Dr. Martin Luther King Jr. Drive and West Walnut Street. In 1997, a $110,000 loan was provided to renovate the Dreamland Ballroom and Sanders Bowl building at King Drive and West Vine Street, transforming the building into eight apartments and 16,000 square feet of commercial space. In 1999 the city provided a $300,000 loan to the Odellian Group for a 13,300-square-foot office building at 1849 N. King Dr., known as the Ring Building, which is anchored by State Farm Insurance. In 2001, a $115,000 loan was provided for a new, mixed-use development at 1825 N. King Dr. with eight apartments, 10,000 square feet of commercial space. In 2003, a $300,000 loan was approved for a $1.7 million, 12,000-square-foot office building at King Drive and Reservoir Street.

    The King Drive and Walnut Street TIF had a total property value of $2.55 million when it was created in 1996, and today has a total property value of more than $10 million, with an increment of $7.46 million.

    The Calumet Woods TIF was created in 1994 to provide funding for paving, sewer, lighting, landscaping and stormwater detention facilities for a 45-acre industrial park at North 68th Street and West Calumet Road. In that industrial park Quality Building Products has built a 49,000-square-foot facility, Roller Fabrics has built a 90,000-square-foot facility, Visual Impressions built a 33,000-square-foot facility, Mac McAllen built a 30,000-square-foot multi-tenant building and O’Donahue Industries built a 20,000-square-foot facility.

    The Calumet Woods TIF had a total property value of $369,200 when it was created in 1994, and today has a total property value of $12.65 million, with an increment of about $12.3 million.

    The Granville Estates/Park TIF was created in 1998 to provide funding for streets and utilities for a 64-acre business park and a 41-lot subdivision next to Dretzka Park, south of West Brown Deer Road at North 114th Street. All of the residential lots have been sold. In the business park 38 acres have been sold. No sites had been sold since 2002 until Kohl’s Corp. this year acquired seven acres to build a 106,000-square-foot facility, where the company will produce photography for its newspaper circulars and for its in-store, on-line and direct mail materials.

    The Granville Estates/Park TIF had a total property value of $1.6 million when it was created in 1998, and today has a total property value of $47.67 million, with an increment of about $46 million. The incremental value in the district is being driven more by the residential subdivision than the business park.

    The top performing TIF district for the city is the Beerline B TIF, which was created in 1993 to stimulate the redevelopment of Commerce Street, which is located along the west side of the Milwaukee River, just north of downtown. Since then several condominium developments have been built along Commerce Street and Lakefront Brewery moved to 1872 N. Commerce Street. The Beerline B TIF had a total property value of $7.7 million when it was created, and today has a total property value of $113.2 million, with an increment of about $105.4 million. The city plans to invest a total of $37.2 million in the district, so the Beerline B TIF is not expected to be closed until 2016.

    Only two of the city’s 48 TIF districts, the Florida Yards TIF and the Industrial Jobs Bank TIF, are struggling to generate enough tax revenue to retire the debt for the city’s investments in the TIF districts. Both of those TIF districts may need “donations” from other TIF districts to restore their solvency.

    The Florida Yards TIF was created in 1993 to fund site assembly, environmental remediation and public improvements for the 15-acre Florida Yards Industrial Park on a former rail yard at East Florida and South Water streets. The total property value for the Florida Yards TIF has increased from $3 million to $14.5 million, but its tax increment is still not providing enough revenue to pay for the city’s costs by 2020, when the TIF legally must expire.

    The Industrial Jobs Bank TIF was created in 1993, in an attempt to create job opportunities for central city residents. The TIF district encompasses a 15-acre site between North 24 and North 27th streets along North Avenue. However, the district has failed to attract manufacturing employers.

    Goodwill plans to expand in Oak Creek

    Goodwill Industries of Southeastern Wisconsin Inc. plans to move its administrative offices and a training center from the city of Milwaukee to a new, 140,000-square-foot building that would be built at 140 E. Rawson Ave. in Oak Creek.

    Goodwill’s administrative office is currently located at 6055 N.91st St. on the northwest side of Milwaukee near North 91st Street and Fond du Lac Avenue. Moving the administrative offices to Oak Creek would free up about 13,500 square feet of space in the 211,000-square-foot 91st Street building to provide more services said Pat Boelter, vice president of marketing for Goodwill Industries of Southeastern Wisconsin.

    “We’re very committed to (the 91st Street) location,” Boelter said. “We’re very committed to staying in this neighborhood. We need to free up more space at 91st Street to expand our human services offerings.”

    Goodwill provides training, employment and supportive services for people with disabilities or disadvantages who seek greater independence.

    Goodwill also plans to move its training center from a 70,000-square-foot space it leases at 200 W. Vogel Ave., Milwaukee, to the proposed Oak Creek facility.

    The Oak Creek facility would be built on a 13-acre property and about 400 employees and program participants would occupy the facility on a daily basis.

    “We’re a growing organization and we need more space,” Boelter said.   

    Brookfield

    London-based Tarsus Group Plc is expanding its U.S. headquarters, located in an office building at 16985 W. Bluemound Road. The company is expanding its 2,380-square-foot space in the building adding an additional 1,820 square feet. The company has also added six additional employees during the past year, bringing its staff in the office up to 26, and plans to add another three to five new positions within the next year, said marketing director Don Browne. Tarsus Group produces trade shows and conferences around the world, and provides resources for trade shows including trade show publications and a Web site.

    West Allis

    The Gustave A. Larson Company recently opened its newest store location at 6736 W. Washington Street in West Allis. This new facility replaces the New Berlin store and will serve as the company’s Great Lakes regional sales office.  In addition to a 5,800-square-foot self-service showroom with working product displays, customers will have access to design engineers, hydronics support, service advisors, account representatives, sales consultants, and sales management. In addition, to serve customers in the western suburbs, an additional will call express location opened recently at the Larson Company’s corporate distribution center at W233 N2869 Roundy Circle West in Pewaukee.  The company also has a downtown Milwaukee store at 1215 West St. Paul Avenue. The company is a wholesale distributor of refrigeration, heating and air conditioning equipment and supplies. 

    Scott Bunker plans to open a 1960s and 70s themed restaurant and lounge, called Bunkers, at 7420 W. Greenfield Ave. in downtown West Allis. The space was previously occupied by Liberty Tax Service.

    Waukesha

    Mark Portz, the owner of the Airport Lodge motel at N10 W24250 Bluemound Road near the Waukesha County Airport/Crites Field, plans to build another motel next door. The two-story, 24-room, 5,920-square-foot motel will be called the Price Pointe Inn.

    Oconomowoc

    Jamie Wilke Interiors recently closed its downtown Oconomowoc store to renovate the historic building that it occupies. The store will reopen in 2009 when the renovations are complete. The building at 203 E. Wisconsin Ave. is 111 years old. The building was built in 1896 by Charles Notbohm, the owner of a Fort Atkinson funeral home. “It’s an old building, and there’s quite a story that goes along with it,” said Jamie Wilke, owner of Jamie Wilke Interiors. “A renovation like this does justice to our store and to the building itself. We’d really like to see it restored to its former glory.” Jamie Wilke Interiors also has a store in Delafield at 803 Genesee St., which will remain open while the Oconomowoc store is closed.

    CREcommercial real estate
            Transactions
    LEASES
    Apex Commercial

    Marc Bianchini leased 1,257 square feet of retail space in the Curry Pierce Building at 728 N. Milwaukee St., Milwaukee, from Charles Trainer.

    Boerke Company

    Franklin City Investments leased 1,114 square feet of office space in the Franklin Corporate Center at 9779 S. Franklin Dr., Franklin, from Rental Office Partners LLC.

    CB Richard Ellis   

    Warshafsky, Rotter, Tarnoff & Bloch, S. C. leased 7,004 square feet of office space at 839 N. Jefferson St., Milwaukee, from 839 North Jefferson Partnership.
    Magnetek, leased 26,612 square feet of industrial space at N50 W13775 Overview Dr., Menomonee Falls from W. C. Bradley Co.
    TRH Subs Inc. d.b.a. Rocky Rococo leased 3,104 square feet of retail space at Miller Park Shoppes- Miller Parkway, West Milwaukee, from Miller Parkway LP.
    Lifetouch National School Studios Inc. leased 853 square feet of office space at 1251 Washington St., Grafton from Grafton Direct LLC.
    Lifetouch National School Studios Inc. leased 5,300 square feet of office space at 17500 W. Liberty Lane, New Berlin, from Hallmark K.
    TecStar Manufacturing Co. leased 8,000 square feet of industrial space at W190 N11701 Moldmakers Way, Germantown, from Hennes Services Inc.

    Dickman Company

    Camelot Classic Cars Inc. leased 6,000 square feet of warehouse space at 4101 W. Green Tree Road, Milwaukee, from Shel Dan Company.

    Inland Companies

    ELM Investment LLC leased 6,326 square feet of space at the Milwaukee Center, 111 E. Kilbourn Ave., Milwaukee.
    Snap Development LLC leased 2,800 square feet of space in Dove Plaza, 1034 E. Commerce Blvd., Slinger.  
    United Health Care Services Inc. leased 3,742 square feet of office space at 250 N. Patrick Blvd., Brookfield.
    Principal Life Insurance Co. leased 16,268 square feet of office space at Woodlake III located at 10200 Innovation Dr., Milwaukee. 
    Carl Evers and Wayne Stroud leased 532 square feet of space from Lincoln Center I at 2448 S. 102nd St., West Allis.
    Chenosa Systems Corp. leased 654 square feet at 21140 Capitol Dr., Pewaukee. 
    Spectrum Business Center leased 4,598 square feet of office space from Executive Center III, 125 N. Executive Dr., Brookfield.
    Tree of Life leased 41,172 square feet of space and Joshen leased 27,808 square feet of space at 8133 N. Granville Woods Road, Milwaukee.
    Linda Ivanovic Law Offices leased 995 square feet of space in The Sentinel Building at 222 E. Mason St., Milwaukee.
    Patterson Dental Supply leased 16,134 square feet of space at N237 N2878 Woodgate Road, Pewaukee. 
    Elutions leased 7,683 square feet of space at Stone Ridge III, N14 W23833 Stone Ridge, Pewaukee. Elutions also had Inland construct new interior offices, conference rooms, storage and server rooms at their new locations.
    Aurora leased 12,196 square feet of space at Stadium Business Park III, 3928 W. Mitchell St., Milwaukee.
    Tressler Third Ward LLC leased 5,181 square feet of space at 222 E. Erie St., Milwaukee.
    Curves for Women leased 1,634 square feet of space from Plaza Del Sol in Kenosha. 

    MLG Commercial

    Highway Technologies leased a 3,200-square-foot industrial space at 6110 S. Howell Ave., Milwaukee, from Keith Miller.
    SOS LLC leased a 1,100-square-foot industrial space at 2400 S. Commerce Dr., New Berlin, from Heartland Properties LLC.
    National Pedorthic Services Inc. leased a 624-square-foot office space at 325 Forest Grove Dr., Pewaukee, from JFK Builders Inc.

    RFP Commercial

    Ziebell Truck Painting Inc. leased 7,592 square feet of industrial space at W140 N10589 Highway 45, Germantown, from Germantown 145 LLC.
    Mann-Public Warehouse leased 33,600 square feet of industrial space at 4200 S. 39th Ave., Kenosha, from Shamrock LLC.
    Burns & Wilcox leased 3,907 square feet of office space, Ayres leased 8,948 square feet of office space, Robert W. Baird leased 13,442 square feet of office space, Amica Mutual Insurance Co. leased 4,146 square feet of office space, Team Spine Inc. leased 3,363 square feet of office space and Cisco Systems Inc. leased 8,203 square feet of office space at N17 W24222 Riverwood, Pewaukee, from Transwestern Commercial Services.
    Kforce Inc. leased 4,095 square feet of office space at 115 S. 84th St., Milwaukee, from Geneva-Honey Creek II LLC.
    Pluta-Dohety Inc. leased 2,781 square feet of office space at 135 S. 84th St., Milwaukee, from Geneva-Honey Creek III LLC.
    Schenker Logistics leased 4,675 square feet of office space at 5000 Ashland Way, Franklin, from St. John Properties Inc.
    Stratagem leased 13,721 square feet of office space at 7338 N. Flint Road, Menomonee Falls, from Weas Development.

    Siegel-Gallagher

    Merge Healthcare leased 9,772 square feet of office space at Summit Place, 6737 W. Washington St., West Allis, from Whitnall Summit Co.
    Norris & Associates Inc. leased 2,022 square feet of office space in the Granville Professional Building at 9001 N. 76th St., Milwaukee, from Graville Professional Bldg LLP.
    Buveck Consultants LLC leased 2,419 square feet of office space at 200 N. Jefferson St., Milwaukee, from Wellman Properties.

    SALES

     

    Apex Commercial

    ST Property Management LLC purchased 4,800 square feet of industrial space at 1630 Arcadian Ave., Waukesha, from Richard DeYoung for $490,000.
    Accurate Specialties Inc. purchased 2.89 acres of land at 24300 W. Bluemound Road, Waukesha, from Girl Scouts – Blue Heron Council for $547,500.
    BBZ Investments LLC purchased 1.5 acres of land at Layton and Kansas Avenue in St. Francis from William and Michael Pelant for $360,000.

    Boerke Company

    ST Property Management purchased 4,800 square feet of retail space at 1630 Arcadian Ave., Waukesha, from Richard Deyoung.
    Lemberg Electric purchased a 48,000-square-foot industrial building at 4085 N. 128th St., Brookfield, from Allan Retzlaff.

    CB Richard Ellis

    North Shore Doggie Day Care LLC purchased 0.35 acres at 1980 W. Florist Avenue, Glendale, from MBER LLC.

    Inland Companies

    BJCMS Properties LLC purchased 3.12 acres in Lot 3 of the Alcan Court property in Jackson.

    MLG Commercial

    Grand Slam LLC purchased a 38,317-square-foot industrial space at 2727 S. 13th St., Milwaukee, from Sue Plater.
    James Kleczka purchased 1.03 acres at 2700 S. 31st St., Milwaukee, from 2759 Investments LLC.

    Ogden & Company

    Brian and Linda Bautz purchased 39 acres on Jarmon Road in Genesee from Georgetown Investments LLC.

    RFP Commercial

    MRED Cummings purchased 1.67 acres at 14000 W. North Ave., Brookfield, from GSG Realty LLC for $1.2 million.
    RB Fratney LLC purchased 21,380 square feet of industrial space at 3700 N. Fratney St., Milwaukee, from Fratney Assoc. LLC for $558,000.

    New construction

    Gerald Nell Inc., Waukesha, was selected by Kwik Trip to build a 7,400-square-foot convenience store, car wash and gas station at Prairie Creek Boulevard and Highway P in Oconomowoc. Gerald Nell was also selected by Ingersoll-Rand Corp. to renovate their 16,000-square-foot corporate office at 12311 W. Silver Spring Dr., Milwaukee.
    Briohn Building Corp., Brookfield, recently completed the design and construction of a 12,800-square-foot building addition for First Choice Ingredients at N112 W19528 Mequon Road, Germantown. Briohn also recently completed the design and construction of a 3,300-square-foot tenant improvement for the John Ellison Advisory Group in the Brookfield Towne Centre at 19035 W. Capitol Dr., Brookfield. Briohn also recently completed the design and construction of an office remodeling for ITT Industries at N28 W23240 Roundy Dr., Pewaukee. Briohn has also been contracted to design and build a 7,800-square-foot tenant improvement for Tazinos Inc. at 400 Bell Ct., Oak Creek.

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