The Milwaukee developer behind a new six-story, $34.8 million project on North Oakland Avenue has set a formal groundbreaking ceremony for Wednesday.

The Mandel Group will officially kick off construction on the new development coined LightHorse 4041 which will include 84 apartments, a 18,000 square foot Walgreens retail store and two parking structures with 200 stalls, at 11 a.m. at the corner of North Oakland Avenue and East Kenmore Place.

Walgreens will move across East Kenmore Place from its current location at 4081 N. Oakland Ave. into the new structure.

LightHorse will be built by Pewaukee-based VJS Construction Services Inc. and was designed by Engberg Anderson Design Partnership.

Seventeen apartments, or 20 percent of the development, have been identified as affordable housing units. The remaining units will include a mix of one-, two- and three-bedroom units.

Shorewood has agreed to provide support for the development with a $4.12 million grant to be recovered through property taxes generated from the development and a $3.54 million loan the developer says it will be able to pay back with revenue generated through rent.

The village will incur another $1 million in fees and other costs. Shorewood will also finance an additional parking level for $1 million out of its special tax district No. 1 and funds from its parking fund.

In conjunction with new development on the Oakland Avenue block, the village has pledged to help finance a remodeling project for Sendik's, with a $350,000 package: a $150,000 business incentive loan and $200,000 grant.

The remodel will include a lot of minor changes, moving of aisles, replacing equipment and redoing floors.

Construction has already started on another Oakland Avenue development. The four-story, $6.6 million structure by developer WiRED Properties is called the Ravenna, includes 22 apartments and 7,500 feet of retail space for four businesses, and is to be erected in the vacant lot at 4533 N. Oakland Ave. across from the Cornerstone.