A city of Milwaukee committee Thursday delayed a vote on a proposed $63 million project to build apartments and hotels in the Park East corridor.
RSC & Associates, Oak Park, Ill., has been working on a project for the easternmost block of the Park East since Milwaukee County accepted the company’s offer to buy the property in 2005. The property is bordered by East Lyons Street, East Ogden Street, North Jefferson Street and North Milwaukee Street.
The current proposal includes a seven-story, $25 million building with 121 apartments, about 20 percent of which would be classified as affordable housing. Richard Curto, CEO of RSC, said he plans to start building the apartments in early 2010.
Future phases of the project include a $38 million, six-story building that would have two hotel franchises—Hyatt Place and Hyatt Summerfield. Hyatt place would have 120 rooms, and Hyatt Summerfield 102 rooms. The two franchises would be in the same building, but would have separate reception areas for guests to check in, Curto said.
The project also includes room for retail, such as restaurants, and a parking structure in the middle of the block with 277 spaces.
Curto said he will not ask the city for subsidies, but may seek state or federal grants.
The developer is asking the Redevelopment Authority of the City of Milwaukee to approve $30 million in tax-free bonds for the project. Under the agreement, RSC would borrow all of the money, but the city would issue the bonds, saving the project money on tax and interest payments.
The redevelopment authority board was to consider approving the bonds on Thursday, but shelved the item because the project design needs some minor changes, Curto said.
Legat Architects Inc., Waukegan, Ill., and Milwaukee-based Barrientos Design & Consulting Inc. designed the project. No general contractor has been selected, Curto said.