Waukesha has another apartment concept for a site near City Hall. Is third time the charm?

WAUKESHA - Another take on apartment living across the street from City Hall has arisen, this time involving a developer who recently completed upscale apartments across from another prominent city facility.

Mandel Group's two-building concept plan for 228 residential units along Delafield Street gained the overwhelming support of the Waukesha Common Council in late November, allowing the process to push forward into eventual concrete plans that ultimately will be subject to further scrutiny.

But, as a concept at least, they represent another shift in what city officials have previously called "prime" real estate, despite more recent setbacks that have prevented development there.

Mandel plan is spurred by success of BridgeWalk Apartments

Mandel Group, whose concept plan was selected over a competing proposal by Bielinski Homes, isn't a stranger to apartment developments in Waukesha, and vice versa.

The regional builder of homes recently completed the BridgeWalk Apartments, a 116-unit development along a stretch of St. Paul Avenue that historically was the site of a railroad depot and tracks owned by the Milwaukee Road.

Jennifer Andrews, the city's community development director, presented Mandel's concept for Delafield Street on Nov. 21, describing a four-story idea that, like BridgeWalk, stretches lengthwise, not deeply, off the roadway. Coincidentally, BridgeWalk also sits across the street from a key city property: Fire Station No. 1.

The developer's decision to begin a new effort in Waukesha was tied to its most recent, Mandel Group's president and chief operating officer, Phillip Aiello, acknowledged.

"The success at BridgeWalk was paramount in our decision to pursue the Delafield property," Aiello said in an email. "BridgeWalk was 100% leased within 42 days after construction completion. The acceptance in the market was remarkable."

Beyond that, the Delafield Street parcels offer something else that fits the concept Mandel Group has kept in mind. "The location near downtown makes the site very attractive," he said. "We prefer to develop urban infill apartment communities in walkable neighborhoods."

Concerns arise over size of the concept

However, even in its conceptual stage, the idea has generated some concerns — as have previous proposals, particularly in the view of neighborhood residents.

Lisa Salb, who with her husband Bob Salb is converting the historic Blair House off Madison Street into a bed-and-breakfast inn, has been a vocal opponent of plans that she feels does not fit the neighborhood. An earlier concept that mentioned a hotel in 2019 fed her fears that the idea might survive beyond the conceptual stage, though to date no such plan has been formally proposed.

That didn't lessen her concern over Mandel's plan for the relatively narrow strip of land wedged between Delafield Street and the hill overlooking the downtown area.

"Can you imagine the additional traffic from a four-story building — five if you count the exposed parking garage — that goes from Madison Street to The Coop (restaurant)?" Salb said in an email addressing traffic concerns and other issues.

Calling the Mandel concept "the monstrosity that was lurking in the background," she cited earlier traffic studies as among the reasons the plan wouldn't work for Delafield Street.

The traffic study, tied to the conversion of North Street to two-way traffic in 2022, indicated Delafield Street doesn't have the capacity during peak traffic to perform at an ideal "level of service" and might require a wider road to compensate. A development with an estimated 376 new parking spaces would only add to that burden, Salb suggested.

"This is one of Waukesha’s five point intersections," she added, referencing the complex crossing of Delafield Avenue with North and Madison streets. "There isn’t room to widen. If the infrastructure can’t support the project, it should not be on the table, no matter how much tax revenue it may generate."

Salb noted her concerns were shared by two aldermen, the father-and-son duo of Eric and Cory Payne, who in open session outwardly criticized the size of the plan as well relative to the neighborhood. But the other 13 aldermen backed the Mandel plan, over Bielinski's much-smaller 104-unit concept, allowing it to advance beyond the conceptual stage.

However, Aiello said it's premature to conclude the development plan, once it is formally proposed, isn't addressing such concerns.

"I would like to reserve comment on their concerns until we can develop the concept further, as additional rendering perspectives may alleviate their concerns," he said, noting that Mandel Group has not yet acquired the parcels and is working on a purchase agreement.

Four parcels make up the redevelopment strip

Since before Waukesha's new central administrative building began construction in 2019, the city has steadily worked to redevelop properties directly across and to the south along Delafield avenue.

A major component was a 1960s strip mall that for years was known for its largest tenant: Jendusa Pharmacy and later Aurora Pharmacy. A dry cleaner also occupied space, which, not surprisingly, required the land to be reclaimed to remove soil contaminants. NAPA Auto Parts, St. Charles Furniture, Matteo's Italian Ristorante and El Ranchito Mexican Restaurant also leased building space at different points.

The city acquired the run-down strip mall and tore it down in 2018, but that was only the beginning. A neighboring auto repair business also was acquired and removed, and the city earmarked its old police station/city hall annex for eventual demolition.

In all, four parcels stretching from Madison Street to a point near Buena Vista Avenue became a city-owned package that Waukesha began marketing to developers, who were sought to submit concept proposals.

Prime land has drawn interest, but no firm plans

City officials, who for a time had considered the land for the site of the new City Hall, quickly realized the land had better potential for private redevelopment. So, while the new municipal center was being built on one side of Delafield Street, the city began a process to bring about the plans for the other side.

For a while, it looked liked roughly 3½ acres of that segment would be used for senior housing. But the 2019 plan by Horizon Development Group/Luther Group featuring a mixed-use building with 80 units of independent senior apartments fell through.

That began another round of speculation involving other development ideas. Minneapolis-based real estate developer Sherman Associates proposed 107-unit active senior living community, but that too faced setbacks, with the developer announcing delays to due rising costs and interest rates.

As a result, the city opted to relist all four parcels and seek another round of proposals.

Because the current proposal is still just a concept, the timeline for its approval and construction is uncertain.

Editor's note, Dec. 13: This story was updated to reflect that city staff, not Mandel Group itself, presented the concept plan to the Waukesha Common Council. It also now lists Phillip Aiello's full title, which includes president.

Contact reporter Jim Riccioli at (262) 446-6635 or  james.riccioli@jrn.com. Follow him on Twitter at  @jariccioli.

This article originally appeared on Milwaukee Journal Sentinel: Mandel Group has apartment concept for site near Waukesha City Hall