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Council approves TIF term sheet to support Mandel development on Delafield Street
Summary
The Waukesha Common Council approved a term sheet providing $6 million in upfront TIF assistance and up to $5,359,220 in PAYGO payments to Mandel Group for a proposed residential redevelopment at Delafield Street, with staff saying the package was vetted by municipal financial advisor Ehlers and the council voting 9–2.
The Waukesha Common Council voted 9–2 to approve a term sheet that would provide Tax Increment Financing assistance to the Mandel Group for a redevelopment at 1320/318 Delafield Street.
Jennifer Andrews, a city staff presenter, outlined the package and the city’s rationale: “There will be an upfront payment made upon occupancy and PAYGO payments based on additional taxes generated by the project,” she said, explaining that the upfront payment would be bonded and the PAYGO component would cap at $5,359,220 and is projected to be paid off by 2047. Andrews said the city’s financial advisor, Ehlers, reviewed the developer pro forma and recommended the terms as the best position for the city.
Alderman Owen Piper described the PAYGO mechanism for viewers and colleagues, noting that “the city is made whole first” from incremental tax revenue before developer payments are made. Piper urged colleagues to support a project on a city-owned site that staff and council say has been underutilized since its 2018 purchase.
The term sheet calls for a $6,000,000 upfront payment that would be paid when occupancy permits are issued, and additional annual PAYGO payments that together would top out at the $5.36 million figure. Staff said the package is structured so the city’s debt service and administrative costs are paid before any PAYGO payments.
Supporters compared the package to prior incentives, and staff presented a per-unit and per-project comparison to prior Mandel and Sherman Associates projects to show the assistance falls within prior practice. Opponents raised concerns about the size of upfront assistance relative to historical precedent before the vote.
The council’s approval authorizes staff to proceed to draft a formal development agreement for later council approval and to move toward closing. The motion to approve the term sheet was made by Alderman Owen Piper and seconded; the vote was recorded as 9 in favor and 2 opposed.
