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Panel approves TIF term sheet for 92‑unit 'Latitude 43' after heated debate over affordability
Summary
After a lengthy presentation and debate, the Financial Affairs Committee voted 6–1 to recommend a tax‑increment financing (TIF) term sheet for Latitude 43, a proposed 92‑unit market‑rate apartment on Mayfair Road; the developer pledged $100,000 to the city's affordable housing fund and the committee split over inclusion of affordable units.
The Wauwatosa Financial Affairs Committee on March 17 recommended approval of a tax‑increment financing (TIF) term sheet for Latitude 43, a proposed 92‑unit market‑rate apartment development at 2825‑2830 North Mayfair Road, after a lengthy presentation from the developer and extended committee debate about affordable housing and subsidy levels.
City staff and the municipal adviser presented a proposed assistance package and recommended terms; staff initially described an MRO note present value of $2,850,000 during the presentation. Developer Ignacio Garcia (Cream City Real Estate Investments) and director of construction Kevin Walgren described the project as a five‑story, 92‑unit building with a podium level of indoor parking, 110 total parking spaces and a mix of studios, one‑bedrooms, two‑bedrooms and a small number of three‑bedrooms. The developer projected a total construction cost near $28.2 million and an estimated increment of about $19.6 million. The developer committed $100,000 to the city’s affordable housing fund as part of the term sheet.
Committee members pressed the developer and staff about whether the project could be built without TIF, whether TIF should be conditioned on onsite affordable units, and the tradeoffs between larger TIF assistance versus in‑unit affordability. Several members noted past projects that did not use TIF; staff and the municipal adviser said the current macroeconomic environment (higher construction and financing costs) materially changes project feasibility and that TIF is often necessary to close the financing gap. The finance director and municipal adviser also discussed alternative structures and limits on subsidy to avoid an outsized windfall for the developer.
Late in the discussion the municipal adviser and finance director clarified the recommendation to the committee; the committee moved the staff/multiadvisor recommendation and the motion was seconded. The committee voted to recommend the term sheet to the Common Council 6–1 (Alder McClough voted no). The approved motion and the public packet will make the term sheet public prior to the council meeting.
The committee’s action does not finalize the TID boundary or a purchase/sale agreement; staff noted the council packet will include the term sheet and future actions such as TID creation and any subsequent modifications would follow statutory and council procedures.
