Greendale looks to create TIF district, spend $10.5 million to redevelop former Boston Store property at Southridge Mall
The village of Greendale is looking to create a tax incremental financing district and spend about $10.5 million in village funds to facilitate the redevelopment of the former Boston Store property at Southridge Mall.
The proposed TIF district, TID No. 6, would pay the costs of infrastructure needed to allow Barrett Lo Visionary Development to develop the property.
Barrett Lo plans to construct a 790-unit apartment project and bring 50,000 square feet of retail and commercial space to the 14.8-acre parcel at 5300 S. 76th St.
The Greendale Village Board in December 2021 approved a draft redevelopment agreement for the project.
A formal redevelopment agreement was signed by both sides in January.
The creation of the TID would require multiple approvals
Creating the TIF district would take several steps.
The TID No. 6 draft project plan is expected to be considered by both the Joint Review Board and Plan Commission on Aug. 31, with a public hearing held during the Plan Commission meeting.
The TIF district would also require approval from both the Village Board and the Joint Review Board.
The village anticipates making total expenditures of about $10.5 million, according to the project plan. Of that, an estimated $8.8 million would be spent on infrastructure projects, which would include utilities, sidewalks, walkways, village green and other natural spaces.
The project would enhance the village’s tax base over time, which would help sustain local services, schools and amenities, Greendale Village Manager Mike Hawes said in an email.
"It will also be a boost to the local economy by bringing desirable housing and restaurant/commercial options," he said.
Development expected to increase the property's value to $100 million
The development of the property is expected to increase its value, creating $100.2 million in incremental value by 2035, according to the project plan.
Over the 27-year term of the district, the project would generate $46 million in incremental tax revenue, according to the project plan.
Village leaders are confident in the accuracy of the $100 million projection because the estimate is based on similar developments, Hawes said.
"We also have a development agreement that establishes minimum assessed values for each phase of the project that equals the amount projected in the TID plan," he said.
Project at the former Boston Store at Southridge would be built in three phases
The residential complex would be constructed in three phases with a total of up to 790 upscale, market-rate apartments, including underground parking. The buildings would have a mix of one-, two- and three-bedroom units.
Phase 1 would contain about 215-220 units of residential apartments and about 15,000 square feet of retail and commercial space, according to the redevelopment agreement.
Phase 2 calls for about 350 apartment units together with about 15,000-20,000 square feet of retail and commercial space.
Phase 3 would include about 215-220 apartment units and about 15,000-20,000 square feet of retail and commercial space.
The first phase of residential and commercial construction is expected to take place in 2024-26.
Barrett Lo has developed other apartment projects, including The Couture
Barrett Lo is best known for developing The Couture residential high-rise on Milwaukee's lakefront.
The firm also has done suburban apartments developments, including the Emerald Row project at Oak Creek's Drexel Town Square mixed-use site.
In May 2021, the Greendale Village Board voted to buy the former Boston Store and its parking lot for $3.3 million with plans to make it available for new development. The purchase was completed two months later.
The building has been vacant since Bon-Ton Stores Inc., the operator of Boston Store and other department store chains, was liquidated in 2018.
Contact Bob Dohr at 262-361-9140 or bob.dohr@jrn.com. Follow him on Twitter at @BobDohr1.
Our subscribers make this reporting possible. Please consider supporting local journalism by subscribing to the Journal Sentinel at jsonline.com/deal.
DOWNLOAD THE APP: Get the latest news, sports and more
This article originally appeared on Milwaukee Journal Sentinel: Greendale looks to spend $10.5M to help develop old Boston Store site
