The inclusion of the Lutheran Home in a proposed East Tosa Business Improvement District, or BID, was a key point of contention when the Wauwatosa Plan Commission took up the proposal on Sept. 8. The prospect of a new BID levying a $5,000 annual fee on the nonprofit organization has drawn public opposition from Lutheran Home's leaders.
Since that meeting, at which the Plan Commission unanimously recommended the BID to the Common Council for approval, the Lutheran Home has made clear in response to inquiries from Tosa Forward News that it is opposed to the BID tax, yet it also does not plan to sign onto a petition organized by other property owners seeking to block the BID.
The Lutheran Home's 8-acre property at the corner of Wauwatosa and North avenues is the largest and one of the most valuable of the 106 nonresidential properties that would become part of the BID. Without its support, it is unclear yet whether the petition drive will generate enough opposition to stop the BID within the 30-day petition period.
"Lutheran Home does not take a position for or against creating an East Tosa BID. However, we are concerned about the way the proposal is currently written, as it would require our nonprofit residential facility to pay into the BID," Carey Bartlett, the Lutheran Home's vice president of client relations, said in an email to Tosa Forward News. "We are a 501(c)(3) organization that provides care for seniors who can no longer live safely at home. As a nonprofit, we believe we should not be included in the BID — similar to how city-owned lots are excluded."
Under the BID’s proposed operating plan, nonresidential properties on North Avenue would be taxed at $150 per $100,000 in assessed value, up to a maximum of $5,000 each, to fund an annual BID budget of about $140,000, including a paid part-time director. It would not tax homeowners.
A business improvement district would be governed by a board, similar to a nonprofit board, though it needs city approval because its funding would be facilitated by the new tax collection within the district. Advocates say it would establish a sustainable model for growth and vitality in the district and allow businesses collectively to advocate for safety and physical improvements and to market North Avenue beyond the neighborhood.
The Wauwatosa Common Council is scheduled to consider and potentially give its approval to the BID at its Sept. 30 meeting. After that, it will take effect in January — unless a petition contesting the BID is signed by the owners of affected properties with assessed values totaling at least 40% of the proposed business district.
Opponents have until Oct. 8, or 30 days after the Plan Commission's hearing, under conditions established by state law.
City tax records show that the Lutheran Home paid $37,282 in property taxes and an additional $3,380 fire inspection charge for 2024 on its building at 7500 W. North Ave., which had an assessed value of $1.66 million. Bartlett clarified that the Lutheran Home does not pay property tax on its nonprofit facilities, only on facilities related to a hospice that leases 12 beds and its children’s care center. It voluntarily makes an additional payment to the city in lieu of taxes "in recognition of the essential city services we benefit from, like police, fire, and infrastructure."
"We deeply value being part of the East Tosa community and want to continue being a good neighbor," Bartlett said. "We simply believe that, as a nonprofit senior care provider, Lutheran Home should not be included in the BID assessment."
If the East Tosa BID effort succeeds it will become only the second such business district in the city, after the Village of Wauwatosa BID.
A previous attempt to create an East Tosa BID ended in defeat in 2014, when opposing property owners successfully solicited enough signatures on a petition to block it.
At that time, the Lutheran Home's leadership had expressed support for the BID. The original proposal, filed by five other North Avenue property owners, received several supporting signatures, including Scott McFadden, who served as the Lutheran Home's CEO until his retirement in 2020. The organization is now led by Kathy Cavers.
The 2014 proposal would have established the same district boundaries as the current proposal, including all properties along North Avenue between Wauwatosa Avenue and 60th Street. The 2014 operating plan, however, specified that nonprofit entities "are not included in the BID assessment," seemingly exempting the Lutheran Home from the payment, though the itemized list of properties attached to the proposal indicated the organization would have owed $5,000.
Anna Jarecki, owner of Nourish Skin and Sugar Studio at 6230 W. North Ave., is one of the leaders of the new East Tosa BID campaign. She told Tosa Forward News that organizers had assumed the Lutheran Home would be as supportive as it was in 2014.
"It wasn’t until the certified letter went out that we learned of their opposition to being included," Jarecki said. "Although this was surprising given their past involvement, we’re hopeful that keeping the conversation going will show the value of the BID, highlight our shared commitment to East Tosa, and maybe even bring them back on board as a partner in the future."
She and the larger group of supportive property owners and business owners have been spreading the word about the BID proposal on the social media accounts initially created by the East Tosa Alliance, a volunteer group that disbanded a few years ago. The response to the new BID campaign has been positive, Jarecki said.
"From the comments and messages we've been receiving, it's very clear that Wauwatosans are excited and ready for this next step," she said.
Proponents still may have trouble persuading long-running BID opponents. At Voline Garage, 6902 W. North Ave., owner Dick Klein was opposed in 2014 and he is opposed to the new proposal as well.
"It definitely would not have any advantage for me," Klein told Tosa Forward News this week between helping customers at the gas and service station he has operated for 40 years.
He said he already signed the petition that has been circulating among property owners seeking to stop the BID. He doesn't agree with the way the BID fees would be assessed, based on property value, and he doesn't think it would add anything that the neighborhood doesn't already have.
"I think it's a big waste of money," Klein said. Businesses on North Avenue already are doing well, he said, and new fees would just mean increased prices for customers.
Quite a few other property owners also have signed the petition opposing the BID, Klein said, but he did not have further details.
Erik Anderson, owner of Tosa Insurance at 7206 W. North Ave. and the building it occupies, was one of the leaders of the 2014 effort to stop the BID. He again is organizing the petition drive opposing the new BID proposal. When reached by Tosa Forward News, he declined to comment on the status of the current petition.
- David Paulsen, a Tosa East Towne resident and editor of Tosa Forward News, has more than 25 years of experience as a professional journalist. He can be reached at editor@tosanews.com.
