Mandel Group Development is Done Deal

The Village Board accepted a development agreement Monday, pledging to provide more than $8 million in support to the retail/apartment project.

Shorewood finalized an agreement with Milwaukee developer the Mandel Group late Monday for a retail and apartment development set for the two parking lots near .

Before a mixed crowd of around 50 residents, some of whom opposed the development plans and others who praised the village and developer for the project, the Village Board accepted an agreement. Shorewood will help finance the $34.81 million, six-story building which will include retail space for , 84 apartment units and two parking structures.

Under the agreement, the village will provide a $4.12 million grant to be recovered through property taxes generated from the development and a $3.54 loan the developer would 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. The agreement defines the village won't be obligated to provide more than the roughly $8 million it has outlined.

The chunk of the project will be paid through a $21.67 million Wisconsin Housing and Economic Development Authority loan Mandel has secured, according the village's financial consultant, Mike Harrigan of Ehlers and Associates. Under the terms of the loan, Mandel will provide 17 affordable housing units, 20 percent of the total. The remaining units will include a mix of one-, two- and three-bedroom units.

About $4.4 million in investor equity will fill the remaining project cost.

The village plans to create its fourth special tax district to help fund the project. Village Attorney Ray Pollen said the development agreement is contingent upon the Joint Review Board’s approval of the creation of the tax district. The Joint Review Board includes one member from each taxing district including the village, Milwaukee Area Technical College, Whitefish Bay School District, Milwaukee County and the

The village estimates it will recoup its grants and close the special tax district by 2030, after which the property will produce more than $500,000 in property taxes per year. The village, school district and other entities that receive revenue from Shorewood taxpayers won’t see any additional tax revenue until 2030.

Becuase the development doesn't meet the village's zoning rules, the Village Board also approved the creation of a Planned Development District encompassing the development, giving it unique zoning rules.

The development would be 76 feet tall — 16 feet taller than current zoning rules allow. It would also break setback requirements, with the building façade less than 20 feet from the curb as currently mandated in the district.

The board’s action paves the way for Walgreens to stay in Shorewood. It has 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 will move south across East Kenmore Place to occupy the northeastern corner 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.

Mandel has said it could break ground on the development as early as this fall. Construction of a parking deck behind or west of Sendik's would start first 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.

Sara Conrad June 23, 2011 at 08:43 PM
Kate, I am a renter in Shorewood but I haven't experienced any of what you have. I live west of Oakland, but near the Cornerstone and love all the businesses it has brought in. Even though I'm a "westie" and apparently with that should come some sort of distain for any and all properties east of Oakland, I cherish that part of our community. It's beautiful and all the power to the property owners who are able to live there. Something to aspire to for sure. I love my neighborhood and my old but charming flat. I pay half what I did in the city and garage parking is included. Crime is everywhere (even in Waukesha), especially when you chose to live so close to a city center. In my year of being a Shorewoodian (is that what we are?) I feel safe and sound as a single woman living alone. I'm sorry your stay in Shorewood was so sucky....best of luck out west.
Kate June 23, 2011 at 09:43 PM
Good for you. Just wait until you are screamed at in the grocery store parking lot by a truck full of miscreants (threatened to get "capped" and then told by the police that "people can be dumb"). No, wait--in your perfect Shorewood, that would never happen to a single female in broad daylight, right? Oh, and I hope you don't rent from Dominion LLC ,where my ceiling has poured rainwater, windows are rotted, basement regularly floods, cupboard doors fall off... want me to keep listing the issues? I'd consider where you live, Sara, to be WFB. Move truly west of Oakland--smell the gas station fumes, traffic exhaust, fast food odors, and smile down upon broken glass/graffiti. Let me know when you've had your fill.
Sara Conrad June 23, 2011 at 09:59 PM
Kate, I don't know who was the jerkcake who put the gun to your head to move where you moved, but poo on them. I researched the area, toured different options, and made my decision. All while wearing my big girl pants. There's this thing called freewill...it's pretty spiffy. I have lived with crappy landlords and crappy conditions. Know what I did? I moved out, took them to court, won, collected my judgment and moved on. I didn't blame the neighborhood. The neighborhood was there before they were and will be there long after they're gone. I'm sorry your distain for Shorewood (rather your kicking yourself for making bad decisions) has composed a soundtrack of the sad trombone and itty bitty violin....but again, best of luck out west. Oh...and a tip. CCAP & Google your new landlord. It'll save you the time of commenting on Waukesha's Patch in the future. ;)
Kate June 23, 2011 at 10:39 PM
I think vapid Patch 'journalists' shouldn't be allowed to censor reader comments, darling. You are an insolent twit who will fit in your neighborhood splendidly. Let me know if you ever want to wear your 'big girl pants' and meet with me to discuss these posts. I bet you lack the cajones needed to actually fill them up.
Sara Conrad June 23, 2011 at 11:39 PM
Oh honey bunny. Are you sure it was your ceiling that was leaking or was it just puddles of your tears? I'd be happy to meet you. Please call me at 414-979-1466 & let's set up a play date! Will you be bringing your tiny violin along? I do love a good concert. In all seriousness, I simply stated that my experiences of living in Shorewood were vastly different than yours. You started the name calling. And emailing my editor and threatening him won't get you an apology as I did nothing wrong. Oh...and I'm not a journalist. Or a "journalist". I'm a writer. Vapid however? Come on. I excited the crap out of you, hence your strong reaction.


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