A large development project planned on Milwaukee's far northwest side has inched forward, winning a key approval Thursday despite strong opposition from some neighbors and their alderwoman.
Milwaukee-based development firm
Royal Capital Group wants to build what it calls a "healthy living campus" with 1,125 housing units at full buildout on a 50-acre site east of North Swan Road and south of West Fairy Chasm Road.
Called
Cudahy Farms, the project was first proposed in 2021, but construction work has not begun due to delays in financing and zoning approval, project leaders have said.
On Thursday, Milwaukee's Redevelopment Authority awarded the project team $6 million in city tax incremental financing for the project's $57 million first phase, which would include 212 affordable apartments, ranging from one to three bedrooms (with 100 one-bedroom units reserved for seniors), as well as a renovation of the existing YMCA facility on the property to be used for support services.
Members of the the Royal Capital development team said the city's gap financing is a crucial part of gaining support for the upcoming zoning change, as well as to build confidence needed to win other financing, including from the
Wisconsin Housing and Economic Development Authority (WHEDA).
"While we're continuing to work through addressing the comments and concerns of community, redesign the site plan, density, etc., we continue to work with WHEDA, and their leadership teams are extremely supportive and expect the application (for tax credits) to come down the pipe now," said
Brian Mays, senior manager of capital markets and finance for Royal Capital.
If all goes according to plan, Royal Capital now hopes to break ground on the project by the end of the year.
While the city's Department of City Development strongly supports the project, according to commissioner
Lafayette Crump, local Ald.
Larresa Taylor strongly opposes the project.
"(Royal Capital) has held and attended community meetings over the course of several years, met with the current and previous alderperson multiple times as the development team, but there's very little in our world that meets with universal approval, perhaps only ice cream, and even in that case, there are those who are lactose intolerant," Crump said. "The fact that some do not want this project is not a reason that to block a project that's going to mean so much to so many."
Speaking on behalf of residents, Taylor said the development would vastly shrink the amount of wooded open space in the area, destroying wildlife habitat and taking away what could be a public amenity.
Further, two nearby residential developments have been designated as crime "hot spots" by the Milwaukee Police Department, which neighbors are concerned could spill into Cudahy Farms, Taylor said. Also, several apartment complexes throughout the area have been mismanaged and fallen into disrepair, which is something neighbors are concerned could happen at Cudahy Farms.
Taylor said that out of all the residents she has heard from, only three support the project. Royal Capital said that they have support from more than 200 residents.
After more than two hours of discussion, the Redevelopment Authority ultimately voted 4-2 in support of the city financing resolution. Zoning for the project is scheduled to be heard next month.
The financing proposal from DCD calls for creating a tax incremental financing district, which would allow Royal Capital to receive annual payments from Cudahy Farms' property tax payments for up to 17 years. Those payments would total $3.7 million, plus interest totaling $2.1 million, according to the proposal.
Royal Capital expects a more than 10-year buildout for the entire campus over four phases.
