The developer of a proposed 28-story Wauwatosa apartment and office high-rise has dropped those plans − and says delays tied to neighborhood opposition played a role in that decision.

John Vassallo is instead now proposing a car wash near the southwest corner of West Bluemound and North Mayfair roads.

Vassallo said the project's economic feasibility was affected by the big increase in lending interest rates over the past year or so. That made it more difficult to obtain financing for his proposed Drew Tower.

"It's a lot harder at 7 % than 3%," Vassallo said Monday.

Vassallo said he wasn't angry or bitter about his decision, which was first reported by the Milwaukee Business Journal.

However, Vassallo is disappointed − in part because he believes the high-rise would have been better for Wauwatosa.

Its value would have been an estimated $50 million, Vassallo said, or 10 times the $5 million car wash now planned. That amounts to a big decline in the property tax revenue that would be generated for the city and its school district.

Also, Drew Tower's name was to honor his uncle, William Drew − a longtime former Milwaukee development commissioner during the '70s and '80s.

25 story tower proposed in 2020

Vassallo initially proposed a 25-story tower with 354 units. The Plan Commission in 2020 voted against granting that project a zoning variance.

Opponents said the high-rise would exacerbate traffic congestion, cast shadows on nearby homes and not complement a neighborhood made up largely of single-family houses.

Supporters said the location, at the intersection of two multilane highways, was an appropriate place for a high-rise.

Vassallo downsized the plans to a 20-story, 340-unit tower. But he withdrew that application in February 2021 just hours before the Common Council was to vote on the proposal.

In November 2021, Vassallo submitted new plans for a 28-story, 65-unit building with much larger apartments as well as eight floors of office space.

By reducing the number of apartments, the proposal complied with the city zoning code for the site − removing the need for Common Council approval.

However, the revised plan needed approvals from the Board of Zoning Appeals and Design Review Board. Drew Tower received multiple approvals from those boards in 2022 after opponents appealed those decisions.

Residents filed a legal challenge

A group of residents, organized as Underwood Neighbors United, then sued the Board of Zoning Appeals in July, claiming it failed to follow its own rules. That suit is still pending in Milwaukee County Circuit Court.

Meanwhile, Vassallo's latest proposal is for a Tommy's Express Car Wash, part of a chain based in Holland, Michigan.

That project will need conditional use approval from the Plan Commission and Common Council, Vassallo said. He said it would take about six to nine months to build.

Vassallo's investors groups own additional nearby properties. He also operates Mo's Irish Pub, located just across Bluemound Road from the proposed car wash site.

A new car wash isn't what the city needs, mayor says

While Wauwatosa Mayor Dennis McBride hasn't specifically expressed support for the Drew Tower, a car wash isn't what the city needs, he said.

"What we're hoping for generally in Wauwatosa is balanced development projects where we seek the best and highest uses for our property," said McBride. "But a car wash certainly is not the highest and best use for that land."

Not only does the city need more housing, he said, but a car wash also won't add much to the property tax base.

"The property tax base is important because it pays for important community services like police and fire protection, plowing snow and picking up the garbage," McBride said. "Those are the sorts of things that we are concerned with at City Hall."

In recent months, the city has received three other car wash proposals. The Common Council is expected to vote Wednesday on a resolution that would deny the construction of a car wash at 3161 N. Mayfair Road.

"These aren't the kinds of things that are preferred developments in any community that relies heavily on the property tax, as we do, and also on a very difficult, highly traveled road like Mayfair Road," McBride said.

An earlier version of this article incorrectly referred to the relationship between John Vassallo and William Drew.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook. 

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This article originally appeared on Milwaukee Journal Sentinel: Wauwatosa high-rise dropped as developer cites delays from opponents