Brown Deer — After closed session negotiations Wednesday evening, the Community Development Authority unanimously approved a termination of its original 2006 agreement with Lowe's and approved a new agreement with Wal-Mart to develop the vacant Lowe's building on Brown Deer Road.
The CDA's actions amount to recommendations to the Village Board, which will consider the matter on Monday.
When the village partnered through tax incremental financing with Lowe's in 2006, it borrowed $2.4 million to jump start the development. Under the terms of the termination, Lowe's agrees to pay the village $1.25 million to satisfy the outstanding debt payments it would have otherwise funded through property taxes.
The Wal-Mart agreement acknowledges that the retailer will invest at least $11 million in the site. However much Wal-Mart ends up investing, multiplied by the village's assessment ratio — .95 in the 2012 tax year — will determine a fair market "floor value" that Walmart and any successors, at the least, will have to guarantee and pay taxes on.
Both the Lowe's termination agreement and Wal-Mart redevelopment agreement are contingent on the village approving site, landscape, architectural and outdoor lighting, and operational plans. Both agreements have no effect unless the sale between Lowe's and Wal-Mart goes through.
Your link to the biggest stories in the suburbs delivered Thursday mornings.
Enter your e-mail address above and click "Sign Up Now!" to begin receiving your e-mail newsletter Get the Newsletter!
- News and notes
- Local businesses awakening after long winter
- Badger Meter donates $40,000 for Brown Deer riverfront park
- News & Notes: April 9
- Police Report: April 8
- Ronn Johnson's death ruled suicide
- Election 2014: Spring 2014 North Shore election roundup