Relocation of Walgreens a Key Part of Plans for $32 Million Development

A Milwaukee developer may have found a new home for Shorewood's Walgreens as it released details Friday for a $32 million, six-story apartment and retail development on North Oakland Avenue.

Under the plans by The Mandel Group, a  three-building structure would occupy the entire Sendik’s parking lot at 4027 N. Oakland Ave. As part of that plan:

• Walgreens would move south across East Kenmore Place from 4081 N. Oakland Ave. to occupy the northern end of the parking lot with a new store. It would add a drive-thru on the west side of the store, alongside the alleyway.
• A covered parking lot and Sendik’s kiosk would occupy the southern portion of the parking lot.
• 84 upscale apartment units would be built above the Walgreens, kiosk 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.

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

Mandel COO Robert Monnat said the addition of the parking structure will make the area a more vibrant business district with consumers parking in the structure and walking to different shops in the area.

“The success of the district and the success of their business ultimately is based on all the businesses around them,” Monnat said at Community Development Authority meeting Friday morning.

Sendik's owner Anne Nehring said she is excited to have Walgreens move closer and excited about the new development.

However, not everyone is thrilled about the proposed building.

North Shore Presbyterian Church sits directly west of the parking lot and church members had concerns about the proposed development.

"That building will dwarf our church," one member said.

Church members are worried that the six-story development would shield the church from the view of Oakland Avenue traffic.They asked that the village consider putting a sign on Oakland that would let motorists know where the church is located.

The alleyway is used by the church to drop off disabled members and some asked whether the route would be used as the new drive-thru for Walgreens. But Monnat said the drive-thru and alleyway would be separate, and the church-goers could use the new Sendik's covered parking lot or parking structure behind the grocer.

For Walgreens, the move solves an issue it has been dealing with for more than a decade, said spokesman Jeffrey Metz for RE Enterprises, a business consulting company. It has looked at a dozen different sites in Shorewood over the last decade as its lease will expire April 30, and Roundy’s, which owns the rights to purchase that property and the former Open Book property, may have plans to expand their Pick ‘n Save on the same block.

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.

Monnat said Mandel plans to finance most of the $32 million through the sale of tax-exempt bonds.

CDA Chairman Pete Petrie said 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.

The developer has yet to send a formal plan to the CDA, but Monnat said that will come soon.

Village Manager Chris Swartz said the village will hold about 14 meetings, including informational sessions for residents, before anything is approved.

Business Improvement Director Jim Plaisted said Mandel hit a home run with its plans.

"They've hit the goals in the master plan," Plaisted said.

The development would be Shorewood's third mixed-use development on North Oakland Avenue, adding to an already booming business district.