Developers pitch Waterfare Apartments (Sonesta conversion); staff says TIF needed, committee moves to closed session

Developers Anish Gharia and Patrick Shanahan presented the Waterfare Apartments project to the Wauwatosa Financial Affairs Committee on Nov. 11, describing plans to convert the Sonesta hotel at Watertown Plank Road and Mayfair Road into about 146 affordable units aimed primarily at Research Park/MRMC workers and students.

"We're looking at mostly studios and one bedrooms," Shanahan said, describing a unit mix with micro-studios around 330 sq. ft. and demised one-bedroom units near 660 sq. ft. He said the team is targeting starting rents of about $985 for a micro-studio and $1,300 for a one-bedroom—figures the developers said are roughly 5–10% below their prior Watertown project.

Developers outlined major capital needs for the 18-year-old building (roof leak, failing mechanicals, window and parking repairs, and the requirement to install 146 individual meters) and said higher interest rates and construction costs make the project financially challenging without city support. "But for the TIF, our affordable rents would not be at the price point that they are," a developer said.

Staff told the committee that tax incremental financing is a key term in the confidential term sheet included in the packet's closed section; staff noted the property does not currently sit inside a redevelopment TIF district and the creation of a TIF would likely include both parcels the developers have identified so that future infrastructure and walkability improvements can be funded by captured increment.

Committee members raised site questions—green space, pet policy, and whether ADA and special-needs units will be provided. Developers confirmed there will be ADA-compliant units and said reasonable accommodations would be made as needed. Residential advocate Mary Walls Huynotsky urged the committee to ensure special-needs residents are integrated into the neighborhood and not siloed, citing limited transit and walkability at the site.

The planning commission voted unanimously to recommend a conditional use permit and the Research Park board expressed support. The mayor and other local officials praised the developer's prior Watertown project and highlighted community benefits such as resident scholarships and events.

Because TIF terms and some financial details are confidential, the committee voted to convene in closed session under Wisconsin Statute 19.85 to discuss the term sheet and bargaining strategy; Alder Phillips moved the closed-session motion and Alder McClue seconded, and the committee recorded seven ayes.