Last updated on November 21st, 2019 at 02:42 pm
City of West Allis officials are considering the creation of a new tax incremental financing district that would provide a $1.45 million developer incentive for a proposed 107-room hotel bordering Interstate 894.
Milwaukee-based Catalyst Partners and JNK Development plan to develop a four-story, 60,000-square-foot Holiday Inn Express & Suites at the site of an existing office building at 10201 W. Lincoln Ave. The 2-acre site is located at the southwest corner of the I-41/I-894 and Lincoln Avenue interchange.
Project plans were filed with the city earlier this year.
The developer has also submitted a proposal requesting assistance to help close a gap in financing on the project, said Patrick Schloss, West Allis community development manager.
The $1.45 million in financing would come from a proposed TIF district. The 21-acre district would roughly be bounded by West Lincoln Avenue, South 107th Street, West Hayes Avenue and the freeway, according to the TID project plan.
Including the developer incentive payment, the city is planning to spend $2.8 million in the new TID. Other expenditures include $750,000 for other future redevelopment projects, $250,000 for residential rehabilitation assistance and $250,000 for potential infrastructure rehabilitation.
The city anticipates providing the incentive payment for the hotel project this year or next, with the other payments occurring sometime in 2021 or later.
The district encompasses 17 properties. Most of the land within its boundaries is zoned for commercial or institutional uses. About 12.1 acres, or 55% of the total area within the TID, is in need of rehabilitation, the project plan states.
Schloss said the hotel development site is currently valued at roughly $1 million. The city estimates the project will generate approximately $18 million in overall value by the beginning of 2023.
Schloss said there are a couple of other possible developments in this area. The hotel project would also provide a development-ready site that could accommodate another roughly 16,000-square-foot building. He added there is also a church building for sale in the area of the proposed TID.
The $250,000 in residential rehabilitation assistance would go toward fixing up homes in or near the proposed TID boundaries.
According to the project plan, the TID is expected to generate enough tax increment to pay all project costs within eight years.
West Allis’ Community Development Authority will consider the TID project plan on Tuesday. Schloss said the item would then be considered by Common Council members and the Joint Review Board in August.
The project developer could not immediately be reached for comment.