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Presentation by MSP Real Estate and consideration of approval of a proposed term sheet for an affordable housing development on Foundry Way in the Burleigh Triangle
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Submitted by:
John Ruggini
Department:
Finance
A. Issue
MSP has an option to purchase and received tax credits for development of a 55-unit affordable family development, where 100% of the proposed units will be income restricted and affordable to incomes at 60% of the County Median Income or below. This project will be located on the former park-and-ride site at the northern tip of the Burleigh Triangle on Foundry Way.
MSP also plans a second phase to this development on the same parcel and is in discussions with staff on the income make-up for this phase. Tax credits have not been secured and a term sheet has not been finalized. This second phase could be affordable, market-rate or a mix.
The developer has requested tax increment financing.
B. Background/Options
MSP secured competitive tax credits as well as $1,000,000 of financial support from Milwaukee County for the development of a 55-unit affordable family development, where 100% of the proposed units will be income restricted and affordable to incomes at 60% of the County Median Income or below. MSP Real Estate specializes in developing and operating senior and multifamily developments in the Midwest. Over the past 32 years, MSP has developed approximately 40 projects in the Midwest and has substantial experience using complex financing tools like housing tax credits and TIF to reposition challenged sites like this one into vibrant communities. They have previously developed the River Parkway projects and the Oxford and Regency to the south.
Phase One will consist of a four-story 55-unit apartment building, above one level of structured parking. The first building will have the following amenities:
• Common Amenities: community room, outdoor patio, on-site leasing office, storage, shared tot lot
• Unit Finishes: full-service kitchen with Energy Star stainless steel appliances, granite countertops, vinyl plank flooring throughout with carpet in the bedrooms, large windows, private unit balconies, in-unit washer and dryer, in-unit internet provided at no cost to residents
• Parking: approximately 39 underground stalls at $45/stall/month.
The building will be 100% income restricted for individuals and families who earn no more than 60% of
Milwaukee County’s median income (“CMI”). Further, approximately 11 units will be set aside to provide housing for those experiencing homelessness at 30% of CMI, and 11 units will be for supportive services for individuals and families with special needs as well.
The developer will be available to provide an overview of the project. City staff and a financial consultant will review the Tax Increment Financing request and term sheet details in closed session with the committee.
C. Strategic Plan (Area of Focus)
Economic Development and Financial Resilience
• Increase opportunities for Wauwatosa residents to work in the City
Housing
• Expand the availability of inclusionary housing for all
• Foster a balanced approach to housing throughout the City
D. Fiscal Impact
To be discussed in closed session
E. Recommendation
Pending the outcome of negotiations with the Developer, City staff recommend approval of the proposed term sheet.
recommendation
The Committee may convene into closed session regarding this item pursuant to Wis. Stat. §19.85 (1)(e), to deliberate or negotiate the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session. The Committee may reconvene into open session to consider the balance of the agenda.