Delayed Bay View development reaches Milwaukee Common Council

By TOM DAYKIN

USA TODAY Network via Reuters Connect

An affordable apartment building planned for Bay View that’s been delayed by neighborhood opposition could be proceeding.

The four-story, 100-unit Austin Commons would replace three vacant houses, at 2318 through 2332 S. Austin St. in Milwaukee. That site is zoned for apartments.

But Common Council approval is required for a $2.1 million tax incremental financing district to help finance the $33.3 million development.

That financing district is proposed by Mayor Cavalier Johnson’s Department of City Development. The Redevelopment Authority board in April endorsed it, with a council review to begin in May.

But Alderwoman Marina Dimitrijevic, whose district includes Bay View, stalled that process after some neighbors objected to Austin Commons. They have concerns about parking and traffic congestion, along with other issues.

The building would include 104 indoor parking spaces, said developer Brandon Methu, who operates Northernstar Companies LLC. That’s 40 spaces more than required by the city, he said.

Methu also cited a traffic study commissioned by the developers, and the Department of Public Works’ overview of neighborhood parking conditions, which show no expected congestion or parking issues.

Northernstar and co-developer Commonwealth Development Corp. on June 30 held a third meeting with neighborhood residents.

That was followed by the proposed financing district being added to the July 7 meeting agenda of the Common Council’s Zoning, Neighborhoods and Development Committee.

Dimitrijevic didn’t answer the Milwaukee Journal Sentinel’s question about her position on the financing district.

“We continue to get mixed feedback so we will see how July 7 goes with testimony,” she said.

Dimitrijevic’s willingness to allow the proposal to undergo committee review “is a significant step forward and a move we appreciate,” Methu said.

The developers “have developed a management and security plan that incorporates resident feedback,” he said.

The financing district would use Austin Commons’ property tax revenue to make annual payments over 21 years to Northernstar and Fond du Lac-based Commonwealth Development.

The firms would use federal affordable housing tax credits as part of their financing package. They require the apartments be provided at below-market rents to people earning 30% to 80% of the area median income.

The tax credits were awarded in 2025 and Austin Commons must break ground by July 31 to keep them.

However, developers can seek construction deadline extensions, in return for fees, from the Wisconsin Housing and Economic Development Authority. It awards the tax credits through annual statewide competitions.