Special Taxing District OK'd for Apartment/Retail Development

In a major move that clears the way for construction of a $34.8 million retail/apartment development, a board of representatives from five taxing districts has approved the creation of special taxing district for the project.

The lone vote Thursday against creating the taxing district for the development planned for the two parking lots near came from Shorewood School District Business Manager Mark Boehlke, who represented the School Board.

The Joint Review Board's action was the last step needed for the Mandel Group to move forward with its six-story development on Oakland Avenue and East Kenmmore Place. On Monday, the .

The project includes 84 apartment units, two parking structures and retail space for Walgreens. The village’s financial consultant, Mike Harrigan of Ehlers and Associates, said the project wouldn’t be able to move forward without the creation of the taxing incremental financing district.

The village will use the tax district to recoup grants it will provide to Mandel to help fund the project. The special tax district is estimated to close by 2030, after which the property will produce more than $500,000 in property taxes per year, officials say.

A TIF district is a mechanism typically used by communities to spur development. When a district is created, a municipality borrows money to pay for various public improvements related to development within the district. Once the development is built, the additional property taxes generated within the district are used to pay off that debt.

The Joint Review Board that approved the creation of the TIF District No. 4 includes one member from each area taxing district, including the village, Milwaukee Area Technical College, Whitefish Bay School District, Milwaukee County and the Shorewood School District. The taxing district had to be approved by the board to move forward.

The . School officials said they were worried about a potential loss of tax revenue and that they didn't have enough information about the project.

The board also approved adding more spending authority under the village’s TIF District No. 1, which encompasses Oakland Avenue from Capitol Drive to Kensington Boulevard. The move will allow the village to spend an additional $10.2 million for future projects in that district.

Village officials have said the additional authority is needed to be ready for prospective development in Shorewood.