Developers pitch TIF‑backed 250–290‑unit project at 1911 Gateway Drive in Watertown

Freehill Capital presented a proposal to build roughly 250–290 rental units on about 33 acres at 1911 Gateway Drive, telling the Watertown Committee of the Whole on Monday that the project would fill a local housing gap and could be supported by a tax increment financing (TIF/TID) district.

The developers said the project would include a mix of one‑ to three‑bedroom units, many with private entry and attached garages, and shared amenities such as a clubhouse, fitness area and recreational courts. Presenters described wetlands on the east side of the parcel that would be preserved and used as an amenity with walking trails.

"TIF can bridge this gap without burdening its existing taxpayers," a Freehill Capital representative said during the presentation, describing TIF as a tool that captures new tax revenue from a completed project and reinvests the increment locally to make otherwise infeasible development possible.

Why it matters: Councilmembers repeatedly framed the proposal as a potential catalyst for further development along the I‑94/Milwaukee corridor and a way to add workforce housing employers say is in short supply. Supporters pointed to a Jefferson County market analysis cited in the presentation and to low local vacancy rates as evidence of demand.

Council response and fiscal concerns: Several alderpeople expressed support for the site's location and for the idea of using some public assistance to make the project viable. Alder Lampe said a prior committee discussion concluded that substantial multifamily development in Watertown is unlikely to be feasible without public assistance and cited the Jefferson County Residential Market Analysis as supporting the need.

At the same time, Alder Arnett urged caution and called for specific, consistent fiscal numbers. "TID was initially primarily created to facilitate industrial and commercial development," Arnett said, adding that residential development typically increases per‑capita consumption of city services (fire, police, parks) and that shifting tax increment to a residential project can leave existing taxpayers to cover higher service costs during the life of the TID. He suggested alternatives the city could pursue — such as oversizing infrastructure or pursuing state stormwater credits — to reduce fiscal exposure.

Company experience and management: Developers said Freehill Capital will co‑develop with a national partner, National Management, which will manage the property after construction. The presenters said Freehill has experience with acquisitions and adaptive‑reuse projects and that National Management has ground‑up construction experience; they also noted the team's prior developments in the region and that land for the Gateway parcel was purchased in cash.

Next steps: No formal vote or action was taken. Developers said they will continue work with city planning and zoning staff and provide more detailed financial analysis. The meeting adjourned after the presentation and discussion.

Meeting note: The committee did not take a formal vote on creating a TIF or on any development agreement; next procedural steps would be planning and zoning reviews and any formal TID creation process if the council elects to pursue it.