UPDATED: Developer Could Break Ground as Early as Fall on Oakland Development

Milwaukee developer the Mandel Group said Friday it hopes to break ground on a new six-story, $32 million retail and apartment development on North Oakland Avenue by fall.

There is a sense of urgency to begin work on the proposed development that would occupy the entire property that serves as the Sendik's parking lot, as it creates a new home for Shorewood’s Walgreens.

Walgreens has agreed to a one-year extension at its current location, 4081 N. Oakland Ave., but the agreement allows the owner of the property, Roundy's, to issue a 90-day termination notice at any time, said Jeffrey Metz, a spokesman for RE Enterprises, a business consulting company.

The retailer has searched for a new village location for 10 years. Roundy's owns the rights to the Walgreens and former Open Book property, .

, Walgreens would move south across East Kenmore Place to occupy the northern end of the Sendik’s parking lot, 4027 N. Oakland Ave. It would also add a drive-thru on the west side of the store, alongside the alley.

The plan also includes a covered parking lot and Sendik’s kiosk on the southern portion of the parking lot, 84 upscale apartment units above the Walgreens and covered parking. Underground parking would be built for apartment residents. A two-story parking structure would be constructed in the parking lot behind Sendik’s.

Construction of a parking deck behind or west of Sendik's would start this fall and would take around three months to complete, said Mandel Senior VP Richard Lincoln. Construction would then move on to the main building occupying the Sendik's parking lot and Walgreens would move to its new location in fall 2012. The whole project would wrap up in 2013.

The two parking lots are owned by Katz Properties but the Mandel Group has the rights to buy the property.

The Community Development Authority voted unanimously Friday to move forward with development plans.

Lincoln said the developer will begin addressing issues some have raised about the development.

At a earlier CDA meeting, some took issue with the size of the building. North Shore Presbyterian Church sits directly west of the parking lot and church members said the development would dwarf theirs. The six-story building could cause issues with solar panels on the church's roof, others said.

Mandel and the village has been in talks with a consultant regarding studies of traffic and parking in relation to the new development, Lincoln said.

"With any development bigger than a two-car garage, there is always a discussion about the impact of traffic," Lincoln said. "They're going to engage some UWM students ... to do some very specific traffic counts to determine just who is coming in and out of those lots and what time of the day."

Lincoln said the development will incorporate "green roofs," which can help absorb storm water, and Mandel will meet with MMSD and the village's Conservation Committee in consideration of the village's sewer issues.

Most of the units would rent for around $1,200 to $2,000 per month, however, 17 of them would be set aside for moderate- to low-income renters and would rent for $775 to $1,200.

Mandel plans to finance most of the $32 million through the sale of tax-exempt bonds. CDA Chairman Pete Petrie said at an earlier meeting that the village has talked with the developer about providing financial assistance, either through a grant or low-interest loan, but wouldn't comment on the amount.

Whatever village assistance the developer would receive would be repaid through the creation of a tax incremental financing district.

Officials will discuss financial specifics at a CDA meeting planned for April 15, and the Village Board plans to take action on the development in a meeting April 18, according to a timeline released Friday.