Mixed-use development along river could get city financing
A $100 million mixed-use development that would overlook Milwaukee’s Kinnickinnic River would receive up to around $8 million in city financing help under a new proposal.
The funds to help develop the River 1 project would come from its new property taxes through a tax incremental financing district.
The TIF district would provide up to $7.8 million to help construct a RiverWalk at the River 1 site, conduct an environmental cleanup, build other public improvements and help Michels Corp. create jobs by locating its growing Milwaukee operations there.
That’s according to a new proposal from Mayor Tom Barrett’s Department of City Development.
The proposal, which needs Common Council approval, will have a public hearing before the Redevelopment Authority board on Sept. 11.
Utilities and infrastructure contractor Michels Corp. announced Aug. 6 its plans to develop River 1 west of South First Street and north of West Becher Street.
The development’s $49 million first phase would feature an eight-story building with around 130,000 square feet that Michels would eventually anchor with around 400 employees.
The proposed city financing package would include a $1 million grant for Michels to initially create around 250 jobs at River 1.
That first phase also would include a parking structure with 500 spaces and 1,030 feet of RiverWalk, according to the financing proposal.
Michels hopes to begin construction of the first phase by the end of this year. It would be completed by summer 2020.
Along with that $1 million job creation grant, city spending on the first phase would include $3.4 million to pay for 70 percent of the RiverWalk. There also would be $400,000 spent to help finance the site’s environmental cleanup.
River 1’s additional buildings could include two more office buildings, each with 50,000 square feet; an apartment building with around 70 to 100 units and a restaurant on the ground floor; and a hotel with roughly 100 rooms, according to conceptual plans. There also would be a public square.
Much of River 1’s conceptual plans becoming reality would depend on demand from prospective office users, as well as a market reaction to the proposed apartments, hotel and restaurant space, according to Michels executives.
The development would be within Milwaukee’s new Harbor District, which covers 1,000 acres bordered roughly by South First Street, the lakefront, the Milwaukee River and Bay Street/Becher Street.
The district’s water and land use plan, approved in February by Barrett and the council, envisions a dramatic, long-range transformation of the area from former heavy industrial sites into housing, offices and other new uses.
River 1 is so far the largest project pending within the Harbor District.