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Board approves sale and development agreement for 11.2 acres in East Troy business park
Summary
The board approved a development agreement with BLD East (Bridal Development) for a 130,000-square-foot facility and a resolution authorizing sale of 11.2 acres of village-owned land in TID 4.
The Village Board approved a development agreement with BLD East (associated with Bridal Development Corporation) and authorized the sale of approximately 11.2 acres of village land in the East Troy Business Park South to facilitate a proposed 130,000-square-foot building.
Eileen, a village staff member, outlined the proposed development at the south end of the business park, just south of Mack’s Apparel. The developer (BLD East / Bridal Development) is proposing a 130,000-square-foot building to house Pieper Power and MP Systems, with about 25,000 square feet of office space and the remainder warehouse. The village will convey 11.2 acres of land in exchange for a guaranteed minimum assessed value of $7,200,000 (the transcript indicates a target date for meeting that value but the exact date was not specified in the record provided). The agreement includes a 66-foot road reservation along the northern boundary to allow for a possible future road connection.
Because the village required the developer to relocate a driveway into the road reservation, the village agreed to reimburse certain costs that would otherwise have been incurred when the village constructs a road. The deal also includes an upfront incentive of $150,000, with a performance incentive that would provide $20,000 for each additional $250,000 of assessed value above the $7.2 million floor, up to a maximum additional $100,000 (which would correspond to assessed value up to $8.2 million); incentive payments are subject to verification and prorated if the guaranteed value is not met.
The agreement requires a larger letter of credit than previous deals because of the upfront cash incentive; it retains a deed-back provision that will be released once the developer begins grading work (the deed back remains while the parcel is undeveloped to protect the village’s interest). Eileen said the developer initially projects 35 office jobs and 20 shop employees at opening, with long-term projections of 65 office employees and 55 shop employees.
The board approved the development agreement subject to final technical changes agreed with the developer’s attorney, and later approved a separate resolution authorizing execution of documents to effectuate the sale of parcel RA512200002.
