Oak Creek will provide up to $30.1 million to help finance a development that could eventually create up to roughly 700 housing units on the city’s lakefront under a new proposal approved by city officials.
The financing would be provided through new property tax revenue generated by the Lakeshore Commons project.
It would be developed on 66 acres next to Lake Vista Park, north of Bender Park and east of South Fifth Avenue, that was part of Oak Creek’s largely industrialized lakefront for decades.
Milwaukee development firm F Street Group LLC plans to build Lakeshore Commons in phases over several years. The housing units would include both rental units as well as those for sale.
F Street proposed the development in December.
The Oak Creek Common Council on Tuesday night voted 5-0 for a development agreement that would fund up to $14.6 million for the project’s first phase.
That would feature 290 to 318 apartments, as well as 58 villas, 32 townhome units and 30 single-family homes, according to the agreement.
Additional development phases could receive up to $15.1 million in city financing.
Those phases would feature 110 apartments, 59 villas, 34 townhomes and 81 single-family homes.
The city would pay for the development’s infrastructure, including roads, sidewalks, sewers and water mains.
Those public funds also would cover other costs, including the purchase of part of the development site from a private land owner, the Boerke Family Trust.
Most of the development site is land that the city will sell to F Street for $108,900 per acre.
In return, F Street is guaranteeing minimum assessed values for Lakeshore Commons of $27.4 million by January 2024 and $81.2 million by January 2027.
Future assessment benchmarks include $115.5 million and $133.3 million as more phases are developed.
F Street hopes to complete its purchase of the site in August, and is required to begin infrastructure construction by Oct. 1, said City Administrator Andrew Vickers.
Construction could start on the first housing units in 2022 after the infrastructure is completed.
F Street wants to create a community with housing options and amenities that appeal to renters and buyers ranging from younger first-time homeowners to empty nesters, firm President Scott Lurie told the Journal Sentinel in December.
The apartments would have market-rate rents comparable to other new Oak Creek units.
The single-family houses would be as small as 1,600 square feet, with prices starting in the $300,000s.
Lakeshore Commons’ shared amenities are to include a clubhouse, fitness center, outdoor swimming pool, walking trails and basketball courts.
Both the Lakeshore Commons site and Lake Vista Park were once part of Oak Creek’s industrial lakefront.
The area since the 1920s was long characterized by such businesses as the Peter Cooper Co. glue factory, Wabash Alloys aluminum castings facility and a DuPont Co. chemical plant.
City officials began envisioning new uses for the lakefront over 20 years ago as some of those older businesses shut down.
Read More: Oak Creek to provide $30 million in financing for Lakeshore Commons