2100 W. North Ave. Photo by Jeramey Jannene.
The city and developer Kalan Haywood announced Wednesday that the former Sears department at 2100 W. North Ave. would be transformed into an 80-room hotel and conference center.
The city will support the project’s first phase through a tax-incremental financing (TIF) district.
You can learn more about the project, including the building’s history, Haywood’s background and how the deal will be financed, in our article from Wednesday afternoon. And if you’re into department store redevelopment, see our piece on the $100 million Schuster’s deal from Tuesday.
The city isn’t just giving money to Haywood with no strings attached. The initial $4 million subsidy comes in the former of a 15-year, interest-only loan. Haywood will use the funds to pay back the city-affiliated Milwaukee Economic Development Corporation for a loan used to purchase the complex and for interior demolition, including asbestos remediation. The developer will ultimately need to refinance the loan into a more conventional mortgage to pay back the principal. A second subsidy, a developer-financed TIF district, would create a property tax rebate structure that places all the risk on Haywood.
Invariably, any time I discuss the former Sears with a longtime Milwaukeean their memories center around the large parking lot. An attendant, situated on an upper floor in the building, used a public address system to guide shoppers to a specific aisle in the large parking lot. Haywood’s proposal relies on a substantial amount of surface parking, but no word if the attendant will return.
A light-hearted moment in yesterday’s press conference announcing the deal including a wager being struck between area Alderman Russell W. Stamper, II and Milwaukee Journal Sentinel reporter Tom Daykin. The two have a handshake bet on whether the hotel will be open in time for the Democratic National Convention. Stamper, the optimistic, says yes. Daykin, playing the role of cynical reporter, says no. A Miller Lite, Stamper’s choice, is on the line.
6. How many stoplights between Fiserv Forum and the hotel?
Haywood, in an interview with Urban Milwaukee, quickly noted that the development is four stoplights and three minutes, 13 seconds of driving from Fiserv Forum. That’s just a bit optimistic: we count six intersections with stoplights between the development and arena parking garage, and Google Maps says the drive would take four minutes. But Haywood’s broader point still stands, the project is very close to Downtown.
Stamper is very optimistic about the area’s future. He told reporters that a headquarters announcement would be coming soon from a local pharmacy chain regarding a nearby building. Stamper also had a footnote, which does not carry the weight of law, inserted in the 2019 budget that instructs the city to create a $500,000 “GROW MKE” fund to support area businesses as part of any TIF district for Sears redevelopment. Such a program would need to be repaid by increased property tax revenue from the development.