Brown Deer OKs expansion of Bradley Crossing
Addition of 54 affordable units to be built
Brown Deer — The village of Brown Deer has agreed to contribute $150,000 to help advance the second phase of the Bradley Crossing Supportive Housing Community, which will include the addition of 54 affordable rental units.
The Village Board on Monday, at the recommendation of the Community Development Authority, approved a development agreement with General Capital Group and Jewish Family Services for the next phase of the development, located at 43rd Street and Bradley Road, within the village's Tax-Incremental Financing District No. 2. The agreement assures that the property will be valued at $2.7 million upon completion of the project.
Health of TIF tied to project
Alan Marcuvitz, who provides legal counsel to the Community Development Authority, explained to the board that proceeding with the project as recommended is necessary to ensure the economic vitality of the TIF district.
When development of the area to the west side of 43rd Street got under way, Marcuvitz said, the expectation was that $14 million in value would be developed in the southwest quadrant of the intersection, with the amount of financial support from the village estimated at $3.1 million or about 22.4 percent. By approving the $150,000 contribution for this project, the level of village support will end up at about 20.6 percent, Marcuvitz noted.
As the village looks toward the anticipated 2022 closure of the TIF district, "If this project is not built with a guaranteed value of $2,700,000, we will end this component of the TIF in red ink, to the tune of about $180,000 or $185,000," Marcuvitz said. "That means the village will have paid out, for retirement of the early borrowings, more than is coming in."
Alternately, moving forward with the project, even with the contribution of additional village funding, would create a surplus of about $85,000 in the TIF district.
Village Manager Michael Hall said that the developer requested $150,000 from the village in order to address changes requested by the Plan Commission and Building Board, including smaller configuration of the 54 rental units. Marcuvitz noted that the actual cost to incorporate those changes exceeds $150,000, and that the amount being requested was cut back from an initially considered amount of about $300,000.
The guaranteed property values specified in the development agreement would pay back the $150,000 village contribution over the course of the remaining nine years on the TIF, Hall said. The $2.7 million guaranteed value for this phase of the project is based upon a unit value consistent with that established for the first phase of the project, Marcuvitz said.
Separate from Beaver Creek
Although this development agreement will provide funding to the same parties involved in the pending Beaver Creek housing proposal, which will be further discussed by the board next month, Village Attorney John Fuchs stressed the need to consider Bradley Crossing as a separate issue in order to focus on the health of the TIF.
According to the development agreement, construction on the project is scheduled to begin no later than April 1, 2014, and to be completed by January 1, 2015. Of the 54 rental units to be built, Jewish Family Services will be responsible for 45, with the remaining nine units to be filled by individuals referred by Milwaukee County.
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