Category Archives: Construction

Borrowing On The Agenda

Posted on by Erik Brooks

Declining property values have done more than affect single-family homeowners. They’ve also hurt property values in tax incremental financing districts.

In 2012, South Milwaukee is feeling the impact of those changes.

Those reductions in tax incremental district (TID) valuations – determined by the state – are why the city is looking at refinancing a portion of the existing debt ($1,535,000) for TIDs 1, 2 and 3.

The City Council will take up the refinancing issue at its meeting Wednesday night.

A TID is basically a financing tool a municipality can use to promote expansion of its tax base.

With a TID, the city borrows money to make infrastructure and other improvements to properties within that district – and pays back the money with property tax revenue generated from the higher value of the redeveloped property (the increment).

The stated goal of city leaders is to pay back that loan, “close” the TID as quickly as possible, and then get the property within the TID back on the property tax rolls, with the higher tax revenue flowing into the city, school district and other taxing bodies (vs. funding the loan).

The upshot of the refinancing action the council is considering: The length of the debt service will be extended, and it will take longer to pay off the TIDs. At the same time, the interest rate will be lower.

While this is unfortunate, the fact that we’re getting less “increment” from these properties is a reality of the economic situation we’re in. Simply, property is not worth as much now as it was five, 10, 15 years ago, something readers of this blog know all too well with the 2011 property revaluation.

This Milwaukee Journal Sentinel story from 2010 explains the broader issue well – and why then-Gov. Jim Doyle signed a law allowing for communities to extend the length of their TIDs.

(Learn more about our TIDs at the South Milwaukee Community Development Authority website.)

And one other note: The refinancing does not at all impact the development agreement with Walmart, nor will it lessen any amount of property taxes Walmart pays. Walmart has pledged to pay the city property taxes based on a $12 million “increment” — the value of the developed property vs. its value now — through at least 2027.

This borrowing is one of several the council will consider Wednesday.

  • We will also consider a resolution for an intent to borrow funds for TID 2 projects – the environmental cleanup and related costs associated with the Walmart project. The borrowing would be for up to $1.5 million to fund the city’s potential portion of the costs to clean up its property at 222 N. Chicago Ave.
  • Another resolution calls for refinancing $1,260,000 in “callable” bonds at a lower interest rate, resulting in savings of approximately $38,000.
  • Another resolution is an intent to borrow through the Clean Water Fund program for upgrades to the city’s wastewater facility – improvements that will be partially funded through the proposed rate increase I wrote about today.

I’ll keep you posted on all of these resolutions.

Drexel Avenue Construction Update

Posted on by Erik Brooks

Work will begin this spring on the new Interstate 94 interchange at Drexel Avenue — with additional work to widen Drexel to four lanes between 27th Street and the freeway beginning next month.

That’s according to this story in Oak Creek Patch. From it:

Oak Creek officials have said the expanded Drexel Avenue and new interchange will greatly help efforts to create economic development and jobs, though it will certainly be a huge change for residents in the area.

The interchange is expected to bring new development near the freeway. City officials believe it will also aid efforts to redevelop the former Delphi site, at the corner of Drexel and Howell.

It will also help South Milwaukee, providing another link to our city from I-94.

Here is more information on the West Drexel project.

Postal Facility Update: Agreement Extended Into 2013

Posted on by Erik Brooks

The Oak Creek City Council has given a developer two more years to move ahead with a project at the corners of Pennsylvania and College Avenues.

It just may not be a postal facility.

That’s according to Oak Creek Patch, which has an update on the project. From it:

“The memorandum of understanding passed Tuesday night by the Common Council also allows for the possibility of a different development altogether for those empty 64 acres on the city’s northeast side.

And at this point, that scenario seems far more likely than the original plan for an 800,000-square-foot mail distribution center, proposed in 2008 shortly before the economy faltered. Though the Oak Creek facility was designed to increase efficiency and ultimately save the USPS money – the building would replace the downtown Milwaukee distribution center - the finances simply aren’t there for the postal service to invest in a large construction project.

“The postal service is projected to lose $10 billion this year. They’re closing facilities,” said Scott Yauck of Cobalt Partners, a Milwaukee development firm working on the project, at Tuesday’s council meeting. “There’s benefit of getting out of downtown regardless, (for) operating efficiency, but they don’t have the capital to do those things right now.

“This is really intended to allow for the exploration of other possibilities.”

So, what does this all mean for South Milwaukee and the 4th District, which borders this parcel? Right now, the future of that land (the former Van Beck’s) is uncertain, but this much is clear: The plan to widen Nicholson/Pennsylvania between College and Rawson remains on for 2012 … with no roundabout. And that’s a good thing.

I’ll keep you posted when I learn more.

Public Works Update: A Closer Look At A Busy Summer And Fall (And Into 2012)

Posted on by Erik Brooks

City Engineer Kyle Vandercar has put together an informative summary of all the work that’s been done with city roads, sewers and other public works projects over the summer – and the plan for the remainder of the year.

Check it out here.

On the Parkway Drive/17th Avenue project, one that I’ve been asked more and more about in recent weeks:

Based on video inspection of storm and sanitary facilities completed in August, a significant amount of additional work needs to be included with the contract plans. We still intend to advertise a contract to construct storm and sanitary work this fall/early winter. Road work/paving will be a spring/early summer 2012 project.

I’ll keep you posted on this and other projects when possible.

And check out this update from Oak Creek Patch on the ongoing College Avenue reconstruction project.

Post Office Update: Options For Development Reportedly Open If Extension Is Passed

Posted on by Erik Brooks

Oak Creek Patch has an interesting story about what the propsed extension of the U.S. Postal Service’s memorandum of understanding with Oak Creek could mean for the proposed mail sorting facility at Pennsylvania and College Avenues.

Check it out here. From it:

An extension for the United States Postal Service to construct a mail-processing center at College and Pennsylvania would not be the only thing that a proposed memorandum of understanding would accomplish.

It would also open up the possibility of a different development altogether on those empty 64 acres, City Attorney Larry Haskin said.

Oak Creek officials like that aspect of the proposed agreement because, unlike the 800,000-square-foot mail processing facility, a private development would generate property tax revenue.

However, it would only happen should the USPS decide not to move forward with its plan to build an 800,000-square-foot mail-processing center, Haskin said.

I’ll keep you posted on what the Oak Creek Council does here — and I’ll do my best to make sure the voice of the 4th District is heard in the debate. I’ll also let you know of any upcoming public hearings on this.

I’d also like to hear your comments on this. Post them below!

Report: Postal Service Seeks Extension On Oak Creek Development

Posted on by Erik Brooks

Update: Here is the Oak Creek meeting agenda. The meeting starts at 7 p.m. on Tuesday (like ours).

Oak Creek Patch is reporting that the United States Postal Service is seeking an extension — until December of 2013 — to begin construction of a new mail sorting facility on Pennsylvania and College Avenues.

Check out the story here. From it:

The Oak Creek Common Council on Tuesday will discuss a proposal to move the start date to Dec. 8, 2013. Tuesday’s meeting is only one step in the process for an extension, however. Final approval won’t come until after a public hearing, to held at a later date.

“Under the current economic climate, USPS is unwilling to commence construction, but is requesting that it retain the right to build the distribution center,” according to the report.

In addition to extending the deadline for construction to begin, the MOU would dictate construction end by Dec. 8, 2015. 

Of course, this is a big issue for South Milwaukee, as this long-discussed facility would be built across the street from the 4th District. It also could impact the expansion plans we have for Pennsylvania/Nicholson Avenue currently scheuled to happen in 2012. 

I will find out more details on this, and keep you posted. I will also work to ensure that the postal service does not hold up the road project — especially for a development that I strongly believe has little, if any, chance of getting built.

At some point, you’re either all in, or you’re not. And I would have a hard time supporting a two-year wait to see if the USPS is truly committed or not.

Then there is the issue involving the roundabout at Hickory Street – not part of the Pennsylvania/Nicholson expansion plans submitted to the state and not something that I support the city having to pay for (even 10 percent).

More on the 17th Avenue/Parkway Drive Work

Posted on by Erik Brooks

The extensive road and sewer project planned for Parkway Drive and 17th Avenue begins this fall and will continue into 2012.

The project was discussed at a public information meeting in late June, and you can see a good summary of the work (as well as the scope of last summer’s flooding) here.

As I’ve written about, I think this is a great example — one of several going on across South Milwaukee this summer — of the city making overdue investments in its aging infrastructure. And I fully support it. I hope you do too.

Of course, contact me anytime with questions or comments.

Investing in Infrastructure: Public Information Meeting Scheduled on Parkway Drive Project

Posted on by Erik Brooks

As I’ve written about, the city is making a significant investment in flood control and other public works project in the Parkway Heights area in the next year, and it starts soon.

Learn more about the plans for this summer at a public information meeting from 5 to 6 p.m. on Monday, June 27, at City Hall.

Neighbors were informed of the meeting in this letter, which details some of the upcoming storm sewer, sanitary sewer, water main and road work expected to begin in August. From it:

Unlimited capacity to the storm and sanitary systems cannot be cost effectively engineered. However, city officials understand the frustration of property owners with flood damages and are committed to identifying improvements which will reduce the chance of flooding and sanitary sewer backups. 

Indeed, these improvements will help … and I hope they show everyone how seriously we take these concerns.

College Closed … Now What?

Posted on by Erik Brooks

Update: I just heard from Milwaukee County Supervisor Pat Jursik, who said work on College west of Pennsylvania is expected to be complete by December. And be prepared: A roundabout is indeed planned on College at Ace Industrial Drive. 

In case you haven’t noticed, College Avenue west of Pennsylvania Avenue is now closed to through traffic, setting up a frustratingly long detour around the airport using Layton Avenue to the north or Rawson Avenue to the south.

This happened in the last couple of days, and I’m not quite sure what the current timeline is for the project.

Of course, work on College east of Pennsylvania/Nicholson also continues, so that whole stretch is kind of a mess. But think of how it will look when it’s done!

I am working to find out more details and will keep you posted. In the meantime, please be patient around the delays.

Post Office Non-Update Update

Posted on by Erik Brooks

The news is  more of the same for the U.S. Postal Service facility proposed for the southwest corner of Nicholson and College Avenues.

In other words, there is no news.

Oak Creek Patch has an update story here. From it:

As the economy went south in late 2008, the U.S. Postal Service suffered massive losses and the Oak Creek project stalled. 

To this day, it has never gotten back on track. The U.S. Postal Service owns the land (after purchasing it for $8.1 million, according to the South Milwaukee NOW), but it still has not decided if it will construct the facility.

“At this point it’s still on hold. No decisions have been made either way,” USPS Spokeswoman Marge Oehlke told me Tuesday. “We have seen billion-dollar losses in the last few years, and we are streamlining our operations and looking at ways of making ourselves more viable for the future.”

I will keep you posted on this if and when I learn more.

Seeing Orange: College Avenue Construction Update

Posted on by Erik Brooks

The much-needed College Avenue reconstruction project between Pennsylvania and Packard Avenues begins this week.

The stimulus-funded work is expected to wrap up by the end of July, according to a letter sent to area residents. Check out the mailing here.

South Milwaukee City Engineer Kyle Vandercar tells me that College Avenue will remain open to through traffic — albeit with lane closures and other restrictions — throughout the project.

Additional work on College west of Pennsylvania — much more significant than the work in South Milwaukee — will also continue in 2011. That is expected to lead to a complete closure of that stretch of College starting later this spring.

I will keep you posted as I get more information on both projects.

On the Nicholson Expansion Meeting

Posted on by Erik Brooks

Update: Here is the PowerPoint deck presented at the meeting.

I wanted to thank everyone for turning out for tonight’s Nicholson/Pennsylvania expansion public information meeting.

By my count, about 50 people were there for the presentation by Foth, the engineering firm working on the project. It was informative, and I think most questions were answered.

I will post the PowerPoint deck shown by Foth as soon as I get it, and I (and the city engineer and his staff) are committed to keeping you updated on this project as it goes forward.

Of course, feel free to contact me with any questions or comments, and post your comments below.

Resurfacing Planned for Grant Park, Mill Road

Posted on by Erik Brooks

Milwaukee County is going to make your drive through Grant Park a little smoother in 2010.

The county plans to resurface a stretch of the park’s main road near the north entrance next spring, as well the stretch of Mill Road from Milwaukee Avenue to Hawthorne venue, according to Milwaukee County Supervisor Pat Jursik.

It’s about time, and if you’ve driven through Grant Park recently, you know what I’m talking about. There are stretches that are literally crumbling, an unfortunate example of the county’s mounting deferred maintenance concerns.

Check out a map showing the stretches in question. The roads in blue are the ones being addressed in 2010.

Reminder: Nicholson Expansion Meeting Wednesday

Posted on by Erik Brooks

Don’t forget that the public information meeting to discuss the staff-recommended option to widen Nicholson/Pennsylvania to four lanes is Wednesday evening at City Hall.

The meeting runs from 5 to 7 p.m., with a presentation starting at 5:30.

City engineering staff, representatives from Foth Engineering and others (including me) will be there to answer any questions you might have about the project. (And I’ll probably learn a bit more about it myself.)

Learn more in my previous post, and I’ll see you there!

Public Info Meeting Set to Discuss Recommended Nicholson Alternative

Posted on by Erik Brooks

Update: Here is the letter sent to area residents promoting the public information meeting.

A four-lane, undivided Nicholson Avenue connecting College and Rawson — a road that is much safer and moves traffic much more efficiently in better connecting South Milwaukee to Highway 794 and beyond.

That’s the recommendation of engineering staff from South Milwaukee and Oak Creek.

Staff from both cities endorsed the undivided option over a divided road that would have featured a median. The latter would have cost more, taken more land from both cities to build and limited driveway access.

The South Milwaukee Public Works and Public Property Committee heard more details about the recommendation at its meeting on Tuesday night.

And you can learn more about the project — and the undivided option — at a public information meeting from 5 to 7 p.m. on Sept. 15 at City Hall.

The proposed undivided design has not changed much from the initial public information meeting in June. A few observations:

  • Construction is expected to take place in 2012.
  • The project is expected to cost around $4.5 million, with the state picking up 80 percent of the costs and South Milwaukee and Oak Creek splitting the remaining 20 percent. When you add in extra design and engineering costs, our share may top $600,000.
  • The undivided option will encroach very little on South Milwaukee properties — taking away maybe two feet of the grassy median north Beech Street, for instance. The trees there will remain.
  • It also features sidewalks on both sides of the street, making the road walkable and bikeable.
  • While it won’t solve the Rawson/College congestion issues during rush hour, it will help.
  • The plan also doesn’t include a roundabout, for now. There is still no word from the U.S. Postal Service on its mail sorting facility at College and Pennsylvania, so the drawings you’ll see at the meeting do not include the roundabout that was called for as part of that project. Could that change? Yes. But I feel strongly we have to move ahead on this project with or without the USPS on board.

I look forward to seeing you at the public information meeting. The City Council will likely formally endorse one of the options at a meeting following the public information meeting.