City officials and the developers behind a plan to turn the Sonesta hotel into affordable housing say the project will not be feasible without financial support from the City of Wauwatosa, which is considering creating a new tax incremental financing district that would include the project.
The Samapa Development Company, which previously developed the Watertown Apartments at 9150 Watertown Plank Rd., has turned its "mission-driven" focus to converting the 198-room hotel on the southeast corner of Watertown Plank and Mayfair roads into 146 apartments. The Wauwatosa Plan Commission voted Nov. 10 to recommend accepting the developer's request for a conditional use permit, which will be taken up by the Common Council on Nov. 18.
Potential city financial assistance is following a separate approval track, and few details have been released publicly. The developer is hoping to secure that assistance in time to close on its purchase of the 7.5-acre Sonesta property this December.
City officials are now reviewing a term sheet for a possible agreement with Samapa Development Company. The contents of the term sheet have not been released to the public, and the council's Finance Committee went into closed session Nov. 11 to discuss them. Before the closed session, however, the developer discussed some of the project's features with Tosa leaders.
The project at 10499 Innovation Drive, under the name Waterfair Apartments, was described as the company's "next chapter in mission-driven housing," and Manish Gharia, who led the developer's presentation to the Finance Committee, noted it has "a fantastic location in the city. It's a gateway corner."
Like the company's earlier Watertown development, the Waterfair hotel conversion would cater to employees and students at the nearby Medical College of Wisconsin, the broader Milwaukee Regional Medical Center and the Milwaukee County Research Park.
An earlier written description of the project said it would include studio, one-bedroom and two-bedroom apartments, though Gharia clarified that the developers are focused primarily on studios and one-bedroom apartments, because those are in highest demand from its target tenants. Under the hotel conversion plan, the former hotel rooms would be turned into 330-square-foot "micro-studios" for $985 a month and 660-square-foot one-bedroom apartments for $1,300, Gharia said.
Offering rents so low would not be possible without some city assistance, he said, especially after taking into account the renovations that will be necessary to the 18-year-old building. Gharia cited the need to repair a leaky roof, address failing mechanical systems and install utility meters in each unit, among other costs.
If the company remains on track to close on its purchase next month, it plans to expedite construction and repairs so it can begin welcoming tenants to the new apartments by summer or early fall 2026.
Mayor Dennis McBride spoke in favor of the plan. "I'm excited about this project," he said, citing the affordable rents and the focus on providing needed workforce housing. "They're performing a public service that I think is above and beyond."
City Finance Director John Ruggini spoke broadly about the city's potential financial role in the project before the Finance Committee voted to go into closed session to talk specifics.
As a hotel conversion, "this is a pretty unique project," Ruggini said, "so we really didn't have a template to work with." He also acknowledged the developer's "compact timeline" as one reason that the city was being asked to approve new tax incremental financing, or TIF, to support the project.
TIF districts are tools that the state provides to municipalities to spur redevelopment of blighted or underused properties. All new tax revenue generated by new development in the TIF district is used to pay down debt that the city chooses to accrue to pay for eligible development-related expenses, such as road construction, utility work, other infrastructure projects or direct financial support to developers.
Ruggini said new tax revenues from a TIF in that neighborhood also could be used in the future to help the city pay for infrastructure improvements in the nearby Research Park.
Ruggini did not say in open session how much financial incentive the city was considering for Samapa Development Company through a new TIF district, and representatives from the company, deferring to the city's confidentiality, also declined to specify how much it was asking from the city when questioned by Tosa Forward News.
Because no vote was to be taken on the TIF at the Finance Committee meeting, it wasn't immediately clear when the full Common Council would consider that measure. Tosa Forward News sought more information from Ruggini, who responded by email referring questions to the city's communications team.
When Tosa Forward News followed up with Wauwatosa Communications Manager Eva Ennamorato, she declined to comment for this story, citing a city policy that it only cooperates with requests from "credentialed" news outlets. Tosa Forward News has repeatedly sought clarification of this policy but has not been provided with further explanation.
[UPDATE: Ennamorato later provided a copy of a written policy guiding city officials' interactions with media outlets, without specifying why Tosa Forward News does not meet the city's definition.]
Demand for housing in Wauwatosa continues to be a top issue in the city, and municipal leaders have long identified providing more affording housing options as a top priority.
- 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.
