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Final report on construction and workforce equity results on the MSP Burleigh apartment project
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Submitted by:
John Ruggini
Department:
Finance Department
A. Issue
The Procurement Equity Policy requires Tax Increment Financing projects include required Disadvantaged Business Enterprise (DBE) and Distressed Zip Code hiring inclusion. The final results are available for the MSP-Burleigh Triangle multifamily development.
B. Background/Options
The City of Wauwatosa provided financial assistance through Tax Increment Financing (TIF) to assist with financing a portion of the eligible costs related to the construction of an approximate 80-unit mixed income affordable housing project at the Mayfair Collection at 11500 West Burleigh Street developed by MSP. Construction has concluded on the 2 buildings that are dedicated for both families and seniors within each respective building. The income levels of the units are a mix of 30%, 50%, 60% and market rate levels.
The Developer was required to hire or sub-contract with firms registered as Disadvantaged Business Enterprises with Milwaukee County or the State of Wisconsin Department of Transportation to complete 25% of the construction and professional services work. In addition, the developer was required to set a goal of hiring 25% of their additional construction work force from distressed zip codes within Milwaukee County. This is a requirement of the City’s Procurement Equity policy.
Prism Technical was hired to monitor and support the achievement of these goals. The final report is attached. In summary:
“It is notable that this is the second MSP project under the relatively new Wauwatosa inclusion program, indicating that familiarity and planning is the key to success. The development team exceeded both the workforce and business inclusion goals of 25% target worker hours; as well as 25% of the hard cost coming from Emerging Business Enterprises - achieving 41.9% Target Worker hours and 46.5% EBE Participation by the completion of the project. Though Wauwatosa inclusion program has EBE goals, the development team achieved 30.7% DBE Participation.”
Also included in the report are interviews with a DBE contractor and a worker from a targeted zip code to show the real-life positive impacts of the program.
The Prism Technical Team will be available to present the report.
C. Strategic Plan (Area of Focus)
For informational purposes only
D. Fiscal Impact
For informational purposes only
E. Recommendation
For informational purposes only