Whitefish Bay board authorizes developers to seek state grant for Fox Bay theater redevelopment

Whitefish Bay — The Village Board on Jan. 21 adopted a resolution allowing Newland Enterprises and prospective operators the Argo to apply for a Wisconsin Economic Development Corporation (WEDC) Community Development Investment Grant to support a proposed $7.3–7.5 million redevelopment of the Fox Bay theater on Silver Spring Drive.

The action (Resolution No. 3172) authorizes the applicant to pursue state grant funding; it does not obligate the village to provide funding. "This project can't happen without the help of the Village," Sheldon Oerman, the owner representative and Newland Enterprises' CFO and general counsel, told trustees during the meeting. Oerman asked the board for permission to apply for the WEDC grant and for the village to consider a development incentive of about $1 million drawn from the Silver Spring Drive tax increment district (TID).

The request comes after a multi-year effort by the owner and prospective operators to find a financially sustainable use for the large, historically significant building. Developers propose converting the site into three complementary spaces: a bar/restaurant in the former lobby, a main entertainment hall with a balcony and premium seating, and a leveled upstairs event space for weddings, private events and community programming. Adam Powers, one of the Argo founders, said the operators expect a mix of programming — live music, comedy, community events and occasional film nights — and plan to reinvest at least $1 from every ticket into local arts and education programs.

Why it matters: The Fox Bay building accounts for a large share of occupiable space on Silver Spring Drive. Village staff told trustees the village's TID fund — created more than two decades ago to support downtown improvements — projects a balance of about $3.7 million by its closure date in 2031; using TID proceeds for an incentive to fill a long-standing vacancy is an eligible use but would be evaluated by the Community Development Authority (CDA) and tied to performance provisions in any developer agreement.

Developers provided numbers and safeguards: Oerman and the Argo team estimated a roughly $7.3–7.5 million total cost for renovations, fixtures and specialized equipment, and indicated the operator model would target up to 500 ticketed seats for the largest events, about 75 seats in the bar/restaurant and 100 seated (200 standing) upstairs in flexible configurations. Josh Bryant, an Argo principal, said the developers' pro forma estimates an annual economic impact of roughly $3.5 million and employment supporting about 31 positions at peak activity.

Trustees and staff pressed for limits and enforceable terms. Village Manager Kelsey said capacity limits, hours, security plans and sound restrictions would be finalized through conditional use permitting, an architecture review and a developer agreement. "There is a draft safety and security plan which has been reviewed with our police chief ... and would be binding as part of a developer agreement and conditional use," Kelsey said.

Public concerns and next steps: Residents used the public-comment period to press developers and the board on parking availability, ride-share pickup/drop-off zones, alley queuing and late-night noise. Developers pointed to an evening parking study prepared with a third-party consultant (Graef) that the public will be able to review before the Plan Commission meeting scheduled for Feb. 10. The CDA will consider the requested TID incentive and financing options at a Jan. 30 meeting.

Board action and what it does not do: The board's resolution authorizes the developer to submit a WEDC grant application and does not commit TID funds, the village general levy or the issuance of debt. If the village and CDA later negotiate an incentive, the board would consider those terms and public comment in future proceedings.

The CDA will take up the financing request on Jan. 30; the Plan Commission will review conditional-use elements (hours, capacities, parking and sound mitigation) on Feb. 10. The developers and staff said further opportunities for public input will follow at each of those hearings.