The Community Development Investment Grant from the Wisconsin Economic Development Corporation will support construction of a 102-unit multi-family residential building as well as a 2,000-square-foot commercial space to accommodate a bistro or cafe.

The Great Rivers Residences will be built on a vacant, blighted former industrial property overlooking the Black River. The land is owned by the city of Onalaska.

Rindfleisch“One of WEDC’s top priorities is to help communities invest in revitalizing their downtowns to encourage economic growth,” said Mark R. Hogan, secretary and CEO of WEDC, the state’s lead economic development organization. “This project not only offers a substantial, efficient solution to the housing shortage in Onalaska, but will also create jobs and equity in a formerly underutilized area.”

“Successful downtown redevelopment is often a balance among the three focus areas of live, work and play,” City Administrator Eric Rindfleisch said, according to a statement issued by WEDC. “The Great River Residences project will enhance the city of Onalaska’s downtown living options for those who wish to enjoy our beautiful parks and trails, as well as support our new and existing downtown businesses. The city of Onalaska is proud to partner with a visionary developer like Three Sixty Real Estate Solutions LLC and is thankful for the assistance of WEDC towards the completion of this important project.”

Marvin and Michelle Wanders of Three Sixty Real Estate Solutions LLC and investor Ben Thorud have started a single-purpose LLC, GRR LCC, for the construction. The project, which began in April, includes a capital investment of more than $15.7 million and is anticipated to be completed by June 2020.

“GRR LLC will be a catalyst in strengthening the urban core of the city of Onalaska. This new housing development is a critical addition for our local companies in offering housing options for incoming employees relocating to this area,” said Michelle Skemp, marketing director for Three Sixty Real Estate Solutions LLC. “As with most infill redevelopment, site-related costs are much more significant, which creates a gap in funding. The collaboration with the city of Onalaska and WEDC was the solution to filling this gap that will create a significant investment into the urban core.”

The Great River Residences will be adjacent to the city’s Great River Landing and the trailhead for the Great River State Bicycle Trail. Located along Hwy. 35 and the waterfronts of Lake Onalaska and the Black River, the residences will be near the newly established Dash Park, just steps from Onalaska’s downtown.

This project has the potential to turn the underutilized land into a high-value, mixed-use development with direct access to waterfront amenities and public parks. Providing more than 100 residential units and additional restaurant or retail businesses to enrich Onalaska’s downtown, the new development is expected to add more than $200,000 a year in additional property tax revenues.

The project is expected to create 50 full-time equivalent positions during the demolition of the current structure and throughout the process of refurbishing the site and construction, according to WEDC. Once finished, the development will require three to five direct full-time positions, as well as additional indirect positions. Additionally, the retail space is expected to employ about 10 to 15 additional service positions.“I am pleased to see the city of Onalaska partner with WEDC in receiving this grant to revitalize and create a more vibrant downtown,” said state Sen. Jennifer Shilling, D-La Crosse. “By investing in community and small business development, we can expand economic and housing opportunities for families and entrepreneurs.”

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In addition to providing assistance for the developer of the Great River Residences project, the TIF district would generate funding that could be used for several other uses not directly related to the Great River Residences, including $2 million for a downtown parking ramp and street/infrastructure improvements, $500,000 for waterfront improvements and $500,000 for use by the city’s Community Development Authority to assist in redevelopment projects within a half-mile radius of the TIF district boundaries.

The TIF district boundaries surround strictly city-owned land to be sold to Three Sixty Real Estate Solutions for the residential/commercial project that include the 200 and 300 blocks of Court Street and most of the 400 block.

With a TIF district, the property assessment is frozen at the start and the taxes on all the increased value of the property that comes from new development — the “increment” — goes into a fund that can be used for a variety of purposes determined in the establishment of the TIF district. The taxes captured include not only the city levy but the amount that would go to all the other taxing jurisdictions, too, including school district, county and technical college district.

There can be some risk involved in TIF districts if the municipality makes big investments in infrastructure to encourage development and then that development doesn’t happen as quickly as expected. That leaves the municipality having to pay off bonds issued to pay for the infrastructure out of its general fund instead of the TIF district proceeds.

Onalaska’s new TIF district is less risky because the developer is paying the $1.6 million for site preparation and utility work upfront and getting repaid over the course of nine to 11 years from the proceeds of the TIF district. The city is not out anything if the development doesn’t happen as scheduled.

“The pay-as-you-go option is for the council’s benefit,” said Sean Lentz of Ehlers, the consultant that helped the city with the TIF district plan. “If the revenue isn’t there, you’re not obligated to make those payments.”

The council in December approved a general development plan for the $16.4 million Great River Residences project that would involve four buildings with 98 housing units, including a four-story, 60-unit apartment building, two townhome buildings and a two-story building that would have retail on the lower level and studio apartments on top. A development agreement for the project is expected to come before the council in April.

While the Great River Residences developer is expected to be paid off within 11 years at most, the city’s plan for the TIF district calls for the capture of taxes on the increment for 27 years, through 2047. Ehlers estimates that the district would generate a little more than $6.7 million in 27 years, with annual increment starting at about $200,000 in the second year and ending at $322,608.

Although the city has approved no specific projects to be paid for by the TIF district after Three Sixty is fully reimbursed for its investment, the TIF district plan includes $2 million that could be used for a downtown parking ramp and other street work and $500,000 for enhancement of the Great River Landing waterfront recreational area.

The plan also envisions giving $500,000 to the city’s Community Development Authority. That money could be used for grants and/or a revolving loan fund to encourage redevelopment projects or new businesses within a half-mile of the TIF district boundaries.

Final approval for the TIF district is required from a Joint Review Board made up of representatives from all the taxing jurisdictions that will meet Feb. 27.

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