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.

John J. O'Neill Sr. June 22, 2011 at 12:16 PM
...and in related development news in neighboring Whitefish Bay...wait...do we have any news?...haven't we done anything?...when was the last time that we did something?...do we have any plans for anything...really...nothing?
Bob McBride June 22, 2011 at 12:22 PM
New parking lots, John. They're fantastic. They're just like the old ones, but they're new. So we're done now. Enjoy.
Jory Pradjinski June 22, 2011 at 03:35 PM
Ah, but here in Shorewood people will soon no longer have to walk past surface parking lots. Shorewood is much more worldly and stylish than to have simple parking lots, we will be hiding ours behind walls, isn't that just grand. Also here in Shorewood we don't let little things like zoning rules for height of a building stop us, much less setback rules. We have such wonderful, insightful, future thinkers rolling over and letting the development companies have whatever they want. Shorewood residents don't question development proposals, they're too busy keeping the coffee shops in business. Residents don't question the traffic problems, or pedestrian safety concerns that will be created by this because the ever so insightful boards are there to do the thinking for them.
Bob McBride June 22, 2011 at 04:59 PM
But Jory, what about the sk8trz? How will they be able to pull off the perfect Ollie in an enclosed lot? Does anyone think about the kids these days? There's more to life than just bowling birthday parties, you know. As an aside, have you folks ever considered an airport? Don't let the small thinkers hem you in there. Maybe the village could annex part of the bike trail for a landing strip and do something really creative with the old P&W site.
David Tatarowicz June 22, 2011 at 10:48 PM
Wonderful that JS had Editorial on how the Sewage Laterals to the houses need to be fixed to stop sewage backup into Shorewood Homes --- let's see, at the $8 million plus for Mandel, at approx $1000 per home, we could fix 8000 homes --- but WAIT --- we only have 3000 some homes !!!! As a real estate broker in looking at the dropping values in Shorewood, I figure anyone with sewage backup should realize their home value is down at least $50,000 !!!! If you think Mandel will improve our property values --- I got a a home to sell you :-) Our Village Board does not understand the concept of leaking sewers causing drastic reduction in home values ............ if they did, they would design TIF to repalce all laterals. They are of the school with Mandel, that if you build it, they will come ---- but even if they do, home values will not go up[
Chuck June 23, 2011 at 01:58 AM
It's official!!!! The village is up for grabs. To the highest bidder. And we the taxpayers will even help out with $$$$. How can we doubt the village board!! The Capitol Drive project was a success?? One we will continue to pay for years to come. And the way they have handled the sewer issue?? They have done almost nothing to improve that issue in the last 14 years. They do tell us as often as they can... laterals, laterals, laterals... I have asked 3 different village officials if the storm and sanitary sewers are in 100% working order. Can they say that there are no leaks in any of the village pipes?? Now let's add to the problem. Lets add 84 more toilets. And the traffic problems mentioned by others. And yes an increase in crime. And dont get me started on the Wilson Drive mess. What next, advertising hanging from the Village Hall walls??
Jeff Lawson June 23, 2011 at 04:58 AM
How can we get Chris Schwartz to leave with McCann? If you people in WFB want development with no tax benefit for the taxpayers, go ahead, buy my house.
Jeff Lawson June 23, 2011 at 05:11 AM
Here in Shorewood, we create TIFs for buildings like cornerstone, so that we can then pay $160,000 to build out a space so a restaurant can move across the street. That's good business, in Cuba. We also spend a couple hundred thousand $ so a few millionaire coffee distributors who promote people like Che Guevara can build out there new retail store for almost no money. The Village Board is doing ABSOLUTELY nothing to reduce our tax liabilities through development. They are acting more like professional developers rather than looking out for the taxpayer's best interest. Our best interest is to lower our taxes and provide good water and sewerage service and create an atmosphere for business to thrive. 1: they can't lower our taxes using TIFs since all of the incremental tax revenue goes to pay off the TIF 2: They can't provide a quality sewer and water because they are too busy developing the Village with unneeded TIFs 3: They can't provide an atmosphere for business to thrive because their own rules create the need for TIFs with special zoning variances not available for any other business. They are a monopoly with ABSOLUTELY no benefit to the taxpayers of Shorewood.
Bob McBride June 23, 2011 at 11:08 AM
Weren't they actually pondering some sort of development west of Wilson drive at one point, adjacent to the park?
Lyle Ruble June 23, 2011 at 12:08 PM
I am in an unusual position of having to support the right wing posts. Our priorities seem to be upside down. The sewer system has to be our number one priority, but we continue with beautification projects and TIFs. We need to bring together the "little people" in the village and push to re-prioritize and spend our money more wisely.
David Tatarowicz June 23, 2011 at 05:16 PM
WOW --- for a while there I thought the Shorewood Village Board was nuts spending all that money on Mandel and letting sewage backup into our homes .................... But then reading the paper it reminded what I had forgotten --- Shorewood Officials just dumped umpteen gallons of sewage into our river and lake ---- so we can have our Mandel Castle and Sewage Pollution too !!!!
Kate June 23, 2011 at 08:12 PM
I am moving out of Shorewood (after living here for 4 years) thanks to several factors... *Renters are third-class citizens. I'm sorry that I'm in my mid-twenties and have student loan payments and a career to build, but I can't afford a house or condo. That doesn't mean that I should have crappy landlords, a run-down 1920s-era apartment that's falling apart, and no voice in any village business. Oh, and the parking. Yes, I've paid probably $3,000 just to park my car over the years, but at least I don't have to move it at 6am. *Have you noted property crime on the rise? More car break-ins, home invasions, graffiti, gun crime... Wait, if you live east of Oakland, you probably haven't (unless you forgot to lock your car in your driveway, which is unfathomable). *Developments like the Cornerstone and new Mandel project clearly demonstrate the village's lack of concern for truly cultivating high quality businesses and attracting residents. TIF? Come on. Why not fix the sewer/water system and recoup the costs of a mucked-up, drawn-out Capitol Drive construction project that left me eating dirt for 6 months. With the property taxes homeowners are assessed, I can honestly say that I don't have a single friend or colleague who could afford a home (mortgage plus taxes) in this village. I'm going to Waukesha County (evidently where I belong). Have fun patronizing your insurance agencies, coffeeshops, and dry cleaners while Shorewood rots to the core.
Bob McBride June 23, 2011 at 08:19 PM
So I'm guessing Kate won't be lining up to rent one of those 84 apartments.
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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