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Committee backs two TIF‑assisted workforce housing projects in Walkers Point
Summary
The committee recommended creation of two single‑parcel TIDs to support Newland Enterprises projects in Walkers Point: Via Apartments (82 workforce units, up to $3.8M TIF) and Forma Apartments (65 workforce units). Terms include a clawback above a 17% return, cost‑sharing for underruns, and RPP/SBE participation requirements.
The Development Committee on March 20 recommended adoption of two tax‑increment financing (TIF) project plans to support workforce housing in Walkers Point, advancing Newland Enterprises’ proposals for 1000 S. 5th St (Via Apartments) and 412 S. 4th St (Forma Apartments).
Larry Kilmer of the Department of City Development said the Via project represents a total investment of about $23.68 million with a proposed TIF assistance up to $3,802,000. Kilmer described standard construction cost‑savings sharing, a clawback that triggers on a developer return above 17%, and a “safety‑valve” clause allowing temporary adjustments to renter eligibility if vacancy rates fall below preapproved levels.
Joey Wisniewski, senior development coordinator for Newland Enterprises, described Via as 82 workforce units (studios through two‑bedrooms) with roughly 4,000 square feet of commercial space, all targeted to 80–100% of area median income (AMI). Wisniewski said the firm has a WEDC grant for environmental testing and site cleanup and that much of the building is being deconstructed now to salvage material.
Kilmer said the TIF offer is developer‑financed for up to 24 years at an illustrative 6.5% interest rate and that the financing package includes third‑party underwriting and market analysis to validate the gap. He also said the project commits to 40% RPP participation and 25% SBE participation. On rents, Wisniewski estimated monthly rents roughly $1,300 to $2,300 depending on unit size.
Committee members probed the unit mix (Kilmer provided a breakdown: 11 one‑bedrooms at 80% AMI, 12 at 90%, and 33 at 100% AMI among the 1‑bedroom units) and marketing plans; members pressed for verification of pro formas and construction estimates. Kilmer said the city uses third‑party consultants to underwrite TIF deals.
Alderman Jackson moved the recommendation for the Via Apartments; the chair recorded no objections and the committee moved the item forward. The Forma Apartments (a 65‑unit workforce project nearby) was presented with the same structure; staff said one of two on‑site houses could not be economically moved and will be deconstructed, and the committee also recommended the Forma item.
Both recommendations were ordered with no objections and recorded as committee actions; each will return to the full council for final approval and for execution of development agreements.
