Tosa OKs $58M to fund Mayfair apartments; opposing official says 'just wait for the outcry'

Wauwatosa officials on Sept. 19 approved the $400 million Mayfair Mall apartment community and the $58 million in city funds that'll be used to finance it.

The $58 million that'll fund the first phase of construction, as well as the Barrett Lo Visionary Development project itself, was approved, 12-3, by the Common Council Tuesday night. The first phase of construction, which will create 463 units, is expected to begin by mid-2025.

The city funds will come from a tax incremental financing district created for the site, which means the project will be funded by the new development's property tax revenue. The city estimates the development's first phase alone would create $111.6 million of additional property tax base.

If the project was developed without a TIF, the money generated from the increased property tax base would be immediately available to the city, school district and other local governments.

Barrett Lo estimates the entire development, which will be completed in three phases, will take 10 to 12 years to complete.

Tosa official calls project a 'total misuse of taxpayer funds'

While the majority of the council voiced support for the 918 apartments that'll be built next to Tosa's vacant Boston Store, those who opposed said luxury apartments shouldn't be financed with taxpayer funds.

"Are there any concerns over the precedent this is setting with the city essentially subsidizing heavy amounts of funds per apartment unit a Tosa resident will likely never own?" said Ald. Andrew Meindl at the Sept. 19 meeting.

Barrett Lo told the Financial Affairs Committee this month that apartments will be "sized affordably" at 570 square feet and rent prices at $2.50 to $2.75 per square foot.

The average rent for a 920-square-foot apartment in Wauwatosa is $1,431, according to apartment-search site RentCafe, which comes out to $1.55 per square foot.

If Meindl were a developer coming to Wauwatosa, he'd request "a massive TIF from here on out," he added.

Ald. Joseph Makhlouf said forming the tax incremental district is "a misuse of our taxpayer funds, and it's a betrayal of taxpayers' trust." The $58 million is only for phase one, he said, and the project will eventually need more money.

"Just wait for the outcry," said Makhlouf, "as more and more details come out, and our residents realize that we are using their taxpayer funds to essentially supplement luxury apartments and their super rich developers."

Project is needed as other local malls are 'dying,' mayor says

Wauwatosa Mayor Dennis McBride said at Tuesday night's council meeting that the development is to preserve Mayfair Mall, the city's second-largest taxpayer, as other local malls, like Southridge and Brookfield Square, are dying.

The deal keeps Mayfair from becoming the next Northridge, a Milwaukee mall that closed in 2003 and still sits vacant 20 years later, McBride said.

Approving the project is "historic" in terms of benefits for Wauwatosa residents, said Ald. Amanda Fuerst, including much-needed multifamily housing and growth in the tax base without increasing residential taxes.

"Any large project is not without risk," said Fuerst. "But we have clear examples laid out to us tonight and through the past several weeks of how the city has taken extensive measures to mitigate as much risk to themselves and our taxpayers as conceivably possible."

Quinn Clark can be emailed at QClark@gannett.com. Follow her on Twitter @Quinn_A_Clark.

More: A church-turned-bank in Tosa was eyed for multifamily housing. Now, it's back on the market.

THANK YOU: Subscribers' support makes this work possible. Help us share the knowledge by buying a gift subscription.

DOWNLOAD THE APP: Get the latest news, sports and more

This article originally appeared on Milwaukee Journal Sentinel: Mayfair Mall apartments, $58 million in city funds approved by Tosa