City leaders voted Sept. 11 to begin negotiations with developers who have proposed building two structures with a mix of apartments and townhouses on a vacant, city-owned parcel on a key Tosa Village corner.
The proposal is one of three submitted for consideration by the Wauwatosa Community Development Authority, or CDA, which met online and voted after deliberating in a closed session. One of the other proposals, involving 21 apartments in one building, was chosen as an alternate.
The property is located at 7746 Menomonee River Parkway, just north of the Harmonee Avenue bridge. It has been vacant since the city purchased it in 2020, tore down an old office building there and began seeking proposals for redevelopment in a process overseen by the CDA.
One developer presented a proposal in July to build a building with nine owner-occupied condominiums. The other two proposals, presented by developers at the Sept. 11 meeting, were the ones chosen as the favored plan and the alternate.
Joel Tilleson, chair of the CDA, said both developers who spoke Sept. 11 had offered "worthy proposals." He gave no specific timeline for finalizing a development agreement.
In remarks Sept. 11, developers and city officials acknowledged several times that the triangular parcel, at barely a quarter acre, is a tight fit for a grand new development. Even so, Tosa leaders are hopeful that this project will contribute to the dramatic growth underway throughout the village commercial district.
The following are summaries of the three proposals.
JJH3group, apartments and townhomes
The proposal chosen for primary negotiations was the one presented Sept. 11 by Jeffrey Hook on behalf of the JJH3group, which is partnering with Tosa-based design firm Galbraith Carnahan Architects. Their project would be valued at $6 million and feature a 14-unit apartment building on the south side of the parcel and a separate building on the north side with four townhouses.
Hook touted the fact that the building would not need special zoning approval because its proposed height is lower than what the zoning allows, which will help it fit more naturally with the surrounding structures.
"This is the first thing that people coming over the bridge are going to see," he said. "This needs to be something that we’re all proud of."
Spoerl Commercial, 21 apartments
The CDA's chosen alternate was presented Sept. 11 by Brian Spoerl of Spoerl Commercial. The site is "a tricky one," but not impossible to develop, he said. He emphasized his company's the goal of adding affordable apartments to the Tosa Village mix, though the level of city assistance would affect the affordability of the apartments' rents.
Spoerl envisions spending about $5.6 million on the project, creating 21 apartments and 17 underground parking spaces that would cater to the large number of health care professionals in Wauwatosa's workforce.
Spoerl would seek some TIF assistance from the city. Depending on that and other financing options, rents would range from $1,572 to $1,987.
“I think we have a solution that’s affordable and feasible, and we’d love to have Wauwatosa as a partner," Spoerl said.
Tenderland Real Estate, "boutique" condos
In July, Jeff Scrima of Tenderland Real Estate presented a plan for a "boutique condominium development" on the property in a four-story building "styled as a historic factory."
Seven of the owner-occupied units would come with tandem two-vehicle garages, and the other two units would have single-stall garages, all on the building's first floor. The living spaces would be above the garages, with three units per floor. The two-bedroom condos would range from 800 to 1,100 square feet.
"Priced at approximately $450,000 per unit, these homes will add $4 million to Wauwatosa’s tax base, enabling young professionals and empty nesters to remain in the community they love," the written proposal says.
To make the project possible, the developer is asking for the land to be donated, as well as some city assistance through tax increment financing, or TIF, to be negotiated with city officials. This project also would require a zoning variance, because its 48-foot height exceeds the parcel's limits.
The full details on the three written proposals that were submitted to the CDA for review can be found here and here.
Before moving into closed session to discuss the proposals, the CDA invited comment from the public. Joseph Makhlouf, a member of the Wauwatosa Common Council, spoke briefly to say that any redevelopment of that property should offer the city something more than mere housing units, given that several other nearby housing projects have been completed in recent years or are under construction.
"What the village does not need at this time is just more apartments," Makhlouf said. He indicated he favored the JJH3group's proposal for offering a unique design combining apartments and townhouses.
Makhlouf also urged city officials to consider what any development on that busy street might do to traffic patterns through the village.
Before the closed session, Tilleson also pushed back against a recent Milwaukee Business Journal report on the city-owned parcel that described it as "a graveyard for condo plans."
"We’ve had a lot of interest," Tilleson said. "I think the CDA has been picky about this site. Any past presentation that has come and gone has come and gone because the CDA has held this site to a high standard.”
Mayor Dennis McBride also spoke in defense of the city's process, noting regional challenges with the condo market. This parcel, too, "is difficult" to redevelop, "but it is not impossible," he said.
