Village approves Fox Bay redevelopment deal using TID incentives, with enforcement for noise and capacity

Whitefish Bay96The Village Board on June 16 approved a development agreement to redevelop the Fox Bay Theater at 316–338 E. Silver Spring Drive into a bar, restaurant, event venue and live entertainment facility, using incentives drawn from the village99s tax incremental districts rather than the general tax levy.

Under terms outlined in the agreement, incentives will be financed from TID 3 through a net present value pay‑as‑you‑go municipal revenue obligation (modeled at $500,000 NPV at 5% interest) and from TID 1 through a $600,000 convertible loan that will convert to a grant after five years if specific conditions are met. The developer must make a minimum of $5.6 million in eligible property investment, and New Land Enterprises guarantees that the property99s assessed value will increase by $3 million; failure to meet valuation or investment thresholds triggers shortfall payments to the village.

The village emphasized that no funds from the general tax levy paid by single‑family residential properties will be used and that the village will not issue general obligation debt for the project. Instead, incentive payments are structured to be funded from future incremental property tax revenue generated by the project.

Developers also accepted enforcement provisions tied to the conditional use permit, including rights for the village to reduce or terminate municipal revenue obligations if tenant performance issues are not cured within 60 days or for repeat violations. The agreement specifically lists enforcement topic areas including security, noise, venue capacity and parking.

Tom Gleason, a nearby resident who spoke during the public comment period, asked whether the village understood the long‑term fiscal implication of the incentives. "There's a potential obligation for us of $32,000 a year based on the new assessed value," he told the board, asking how that recurring payment had been weighed against risks and alternatives. Village staff and the developer responded that TID rules require incentives only be used for projects that would not occur "but for" the TID assistance, and that the staged pay‑as‑you‑go and convertible loan structure was chosen to mitigate the village99s upfront risk while preserving enforcement rights.

Sheldon Aubberman and Adam Powers, representatives for the owner/developer, told the board they had sought a tenant and a use that met community goals and that the project would not proceed without the agreed incentives and gap financing. The agreement contains a look‑back provision that would return 50% of certain upside if the owners sell the property for more than a specified threshold.

The Community Development Authority recommended the agreement unanimously before the board vote. Trustees approved the amended agreement after brief discussion; the motion carried with one abstention.

Next steps: the developers will proceed with permitting and the conditional use process, and the village will monitor performance milestones tied to funding disbursements. The board noted that the TID structure limits the legal uses of the funds to projects that meet the "but for" test required by statute and municipal TID policy.

Authorities and fiscal notes mentioned at the meeting included TID 1 and TID 3 funding mechanisms and an earlier 2022 incentive term referenced in the agreement; staff noted the agreement extends certain conversion deadlines from the 2022 pact through December 31, 2025.