Despite concerns from some that their $700 million redevelopment proposal for the Marcus Performing Arts Center parking structure site in downtown Milwaukee is too ambitious, an executive of Madison-based development firm
The Neutral Project says the firm believes it can be successful, but that doesn't mean what's proposed now won't be adjusted.
Selected by the Milwaukee Department of City Development (DCD) last month, the proposal was one of three submitted in response to an RFP from the city for redevelopment of the site.
Built over several phases, the development could include 750 residential units, which is more than three times what other developers pitched for the site. This building, primarily built with mass timber, would be the state's tallest at 55 floors.
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Daniel Glaessl[/caption]
“I think (feasibility of the project) is a fair concern, but we have provided our third-party market analysis, and it shows a lot of demand for residential units in Milwaukee for 2028 and onwards," said
Daniel Glaessl, chief product officer for The Neutral Project. "...A project of this size would definitely be absorbable based on the market studies."
As the firm's development plans come into focus, Glaessl said some of the units could be set aside as below market-rate.
The development could also include 190,000 square feet of office space.
"We have received some calls from potential tenants, and so there seems to be interest in class A office space," Glaessl said. "A lot of things need to be figured out here, but there's certainly some interest."
According to current plans, the southwestern portion of the site could be occupied by a 300-room hotel.
"On the hotel side, The Trade opened a while back now and it has been pretty successful," Glaessl said. "We do think that this location, with its proximity to the performing arts center and Fiserv Forum and so on, that additional hospitality capacity would definitely be economically feasible."
Throughout all of the proposed buildings, there is about 40,000 square feet of retail space planned, which is also significantly more than what other developers proposed for the site.
"We have a lot of retail in our proposal, basically the entire ground floor, and we see in downtown that there is a lot of (food and beverage), but actually very little diversified retail offering," Glaessl said. "There's no like Whole Foods or something like that."
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Map from The Neutral Project[/caption]
Additionally, the project could include 1,100 structured parking spaces, which would in part replace what the existing MPAC parking structure has, as well as public plazas and walkways, which would connect the block to the surrounding area, according to Glaessl.
"We are trying to connect the urban tissue that we see with this project and provide this kind of focal point in downtown," Glaessl said.
Downtown alderman questions project feasibility
Glaessl emphasized that the firm has not yet proposed any specific plans and that the purpose of the city's proposed one-year exclusive right to negotiation with The Neutral Project (with possible extensions) is to further refine the concept and assess its feasibility.
"With all of our projects, we run very transparent, open design processes. We invite everybody to participate," Glaessl said. "I think throughout that year-long process, a lot of the concerns around density and mix of use will be clearer because we'll have more time to work with it, listen to the community, potential tenants."
Founded in 2020, The Neutral Project is the firm behind the 383-unit apartment tower The Edison, located one block west of the MPAC parking structure site. That project
could break ground later this year, Glaessl said, as the firm also completes construction of a mid-rise apartment building in Madison. The firm's mission is to construct carbon-neutral buildings.
The firm's relative lack of experience, as well as the project's scale,
prompted downtown Ald. Bob Bauman to request a feasibility study on the project, as well as the two other proposals for the site.
"The Neutral Project has basically built nothing anywhere,” Bauman said.
DCD has defended its choice, saying the project helps advance Mayor Cavalier Johnson's goals to grow the city, add vibrancy to downtown and do it sustainably.
"We know Milwaukee very well from our process with The Edison and we feel that downtown has a lot of good things happening right now, but it also has a few shortfalls," Glaessl said. "There's a lot of food and beverage, Fiserv Forum is amazing, different cultural institutions, MSOE, but it's not a real downtown where people live and work, doesn't feel like a vibrant neighborhood. We wanted to bring a relatively dense development to this site which is really in the middle of all things."
Project phasing
The current plan is for the project to be built over three phases, though the firm is going to continue its market analysis and discussion with potential tenants to determine which buildings will be built first, according to Glaessl.
"If the office tenants we are talking to, they want to move in at a certain date versus if another arrangement comes through, then we would prioritize that," Glaessl said.
While a construction timeline for the first phase has not been outlined, construction wouldn't likely begin for a few years, according to Glaessl, since the city has yet to approve DCD's one-year negotiation period and individual projects will still need to receive further city approval, be financed and the existing parking structure will need to be demolished.
Criticism of the RFP process
The same day that DCD announced that it had selected The Neutral Project to redevelop the MPAC parking structure site, Milwaukee-based developer
New Land Enterprises withdrew its proposal with managing director
Tim Gokhman expressing frustration and criticism for DCD’s handling of the RFP process.
Gokhman
called DCD's handling of the process, or "lack thereof," unprofessional and inconsistent.
Citing 25 years of experience in the commercial real estate industry and experience responding to RFPs nationally and internationally, Glaessl said that "this RFP process was not dissimilar from what I've seen in the past."
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Rendering from MGA[/caption]
