Oak Park, Ill.-based RSC & Associates is seeking up to $30 million in bond financing through the city of Milwaukee for its long delayed development in the Park East corridor.
The tax-exempt redevelopment revenue bonds would be issued through the city’s Redevelopment Authority, providing a low interest financing source for RSC. The Redevelopment Authority will consider the request at its Nov. 19 meeting.
RSC chief executive officer Rich Curto could not be reached for comment.
According to documents filed with the city, RSC plans to build a 250,000-square-foot development with 121 apartments, five townhouses, a parking structure and 7,800 square feet of retail space on a two-acre vacant site bounded by East Lyons Street, East Ogden Street, North Jefferson Street and North Milwaukee Street. Later, RSC plans to add two hotels, a 128-room Hyatt Place boutique hotel and a 102-room Hyatt Summerfield Suites extended stay hotel, to the project.
RSC owns the property and the project was approved by the city, but it has been delayed since 2008 because it could not obtain financing after the financial industry meltdown.
For the apartments, 20 percent of the units would be required to be leased to individuals with families whose income is 60 percent less than the area’s median gross income. There would be 10, 560-square-foot studio apartments with rents of $975 to $1,095; 59, 750 to 765-square-foot 1-bedroom apartments with rents of $725 to $1,600; 45, 1,160 to 1,270-square-foot 2-bedroom apartments with rents of $900 to $2,300; and 7, 1,510 to 1,605-square-foot 3-bedroom apartments with rents of $2,300 to $2,570.
According to information filed with the city, RSC hopes to break ground for the project in the spring and complete construction of the first phase in the summer of 2011. Once completed, about 55 people would work at the development including management, maintenance, sales staff, restaurant staff, cleaning and janitorial staff.
RSC purchased the site from Milwaukee County. If the project proceeds, it would be the first Milwaukee County-owned property that has attracted development in the Park East corridor.