Germantown board directs staff to buy village‑center parcels, move ahead on TID process

The Germantown Village Board on Feb. 17 voted to direct staff to close on three parcels at the southeast corner of Mequon and Pilgrim roads and to pursue steps toward creating a tax increment financing district to support a proposed Village Center redevelopment.

The decision follows months of public workshops and a series of consultant presentations. Community Development Director Jeff Ratzlaff told the board the project is intended to “guide and kick‑start redevelopment of an outdated area within the Village Center district” and to implement the recommendations of Germantown’s 2050 comprehensive plan.

Consultants described a phased master plan that centers a market‑style public plaza at the Mequon‑Pilgrim gateway, with higher‑density multifamily housing to generate a customer base for ground‑floor retail and restaurants. Bailey Copeland of Copeland Companies said the plan aims to “create a welcoming gateway to Germantown” and Rinca planner Eric summarized planning principles emphasizing an “amenity‑rich public realm,” a mix of uses and economic viability.

Phil Kossen of municipal financial advisor Ehlers explained tax‑increment financing and the statutory “but‑for” test, saying the board and any developer must show the proposed development “would not occur without having a tax increment district in place.” He described a preliminary financial model that treats the effort as a redevelopment TID (longer statutory life) and estimated an initial public cost package for phase 1 of roughly $11 million for land acquisition, demolition, infrastructure and professional services. Consultants estimated the finished phase‑1 development value at about $70 million, driven in the model by roughly 300 multifamily units on the former Flower Source site (estimated construction cost used in the model: about $175,000 per unit) plus later redevelopment of the Ascension parcel (an additional roughly 90 units at about $200,000 per unit and 10,000 square feet of retail in later phases).

Ehlers said the short timeline for creating a TID is about three months from initial steps to formation and noted a redevelopment TID could carry a statutory maximum life of about 27 years (with a 22‑year expenditure period under the approach presented). The consultant team told the board that the model assumes about $2.1 million in land sale revenue and additional grant/other funding of roughly $6.2 million to improve feasibility, and that the village would seek to negotiate developer contributions and pay‑as‑you‑go reimbursements where possible.

The board heard extensive public comment before the vote. Residents raised concerns about using tax increment districts, potential tax impacts, the lack of a finalized developer, closed‑session negotiations and whether taxpayer funds would be committed for private development. Other residents and trustees argued the village lacks a destination center and that high‑quality, mixed‑use redevelopment is needed to retain younger residents and to support local businesses.

Trustee Rick Miller moved to direct staff to proceed with closings on the three parcels identified for phase 1; the motion was seconded (not specified in the record). After discussion, the board approved the motion. Roll call recorded ayes from Trustees Bob Warren, Terry Kaminski, Jolene Pieper and Village President Walter; nays from Trustee Dean Katz and Trustee Jan Miller; Trustee Baum recused himself from the item. The motion passed.

The board and consultants outlined next steps if the board wishes to advance the project: create a Village Center zoning district and PUD/design guidelines, issue a developer request for proposals (the presenters reported strong interest during an earlier RFQ phase), form a tax increment district, and conduct plan commission public hearings (the team noted a planning commission meeting on the topic is scheduled for March 24). Consultants emphasized negotiations with prospective developers will determine which costs the village must carry versus what the developer will pay or be reimbursed for from future increment.

The board did not adopt a final TID or bonding plan at the Feb. 17 meeting; it authorized staff to proceed with property closings and to continue the public process and developer outreach required to create a TID and negotiate development agreements. Staff told trustees short‑term acquisition costs would initially be covered from general‑fund cash reserves and reimbursed from TID bond proceeds after the TID closes, and that a reimbursement resolution would be prepared to preserve the option to reimburse prior expenditures from future borrowing.