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Waukesha council approves TIF term sheet to aid Mandel redevelopment
Summary
The Waukesha Common Council approved a term sheet providing targeted tax-increment financing (TIF) assistance and an upfront payment to developer Mandel for a two‑building, roughly $43 million residential project at 1320–1328 Delafield Street.
Waukesha — The Common Council on April 3 approved a term sheet that would provide the Mandel Group with a $6,000,000 upfront payment and up to $5,359,220 in PAYGO (pay-as-you-go) TIF assistance to support construction of two apartment buildings on city-owned property at Delafield Street.
The approval, moved by Alderman Owen Piper and seconded by Alderman Bartels, came after a staff presentation describing the city’s long-running effort to redevelop the site and an analysis by municipal financial adviser Ehlers. Jennifer (community development staff) told the council the city purchased the site in 2018 for $550,000 and has pursued redevelopment through a competitive RFP process; Mandel’s current proposal represents the third developer selected for the parcel.
City staff said Mandel’s proposed development has an estimated total project value of about $43,000,800 and that the upfront and PAYGO assistance respond to a demonstrable financing gap driven in part by post‑pandemic increases in labor and materials costs. Under the term sheet, the city would issue bonds to fund the $6,000,000 upfront payment, to be made upon issuance of final occupancy permits; PAYGO payments would be funded from incremental tax collections generated by the completed project and would top out at $5,359,220. Staff said the developer agreement would require city debt service and TIF administration costs be paid before any annual PAYGO payment to the developer.
Staff and the council cited comparable past deals for context. Jennifer said the city’s finance advisor reviewed the pro forma and recommended the term-sheet terms as an appropriate municipal position. Alderman Piper, who moved approval, said Mandel has delivered on previous Waukesha projects and urged support. The motion passed; a named recorded aye during voting was Alderman Rick Lemke.
The term sheet is a step toward a formal development agreement; if the council approves the development agreement later, the city would proceed toward closing and construction.
Why it matters: The assistance would use tax increment from the site and other taxing jurisdictions within the TIF district (county, school district, WCTC) to pay the incentive. Staff estimated the project would generate roughly $663,000 per year in total tax revenue and about $390,000 per year in city‑only tax revenue; staff projected PAYGO payments to be repaid within roughly 20 years (district retirement projected about 2047). The council did not vote on the development agreement itself at this meeting.
Details and next steps: If the term sheet is approved by the council tonight, staff said they will draft a full development agreement containing legally enforceable provisions — including guarantees on assessment, reporting, and remedies if the project’s value, phasing or completion differ from expectations — and return it to the council for formal approval and for closing.
