Boston Store Redevelopment Project
On Monday, April 1, 2024, the Village Board voted to approve an advance of $450,000 on a pre-development expense loan to Barrett Lo Visionary Development. Some may remember the board approved a similar advance in November of $750,000. The funding is being used by Barrett Lo Visionary Development to initiate predevelopment work, including design and engineering, for the planned mixed-use development project that will include residential and retail properties.
Project Background
The former Boston Store site is a 14.82-acre parcel adjacent to Southridge Mall that has sat vacant since 2018. In 2021, the Village of Greendale designated the parcel as "blighted" under s. §66.1333(5)(c) of the Wisconsin Statutes and subsequently purchased the property for $3.3 million to facilitate its redevelopment. On December 21, 2021 the Greendale Village Board approved Barrett Lo Visionary Development’s proposal for a mixed-use development that will bring upscale market-rate apartment options for residents, modern retail amenities and significant new tax base to the community. Barrett Lo Visionary Development has a track record of success in helping communities create destination projects for their communities, including the Parterre at Emerald Row, a key part of the City of Oak Creek’s Drexel Town Square project, as well as The Moderne and The Couture in the City of Milwaukee.
The development will include a residential complex constructed in three phases with upscale market-rate apartments. The development will also include retail / commercial space.
The proposal has been developed to eliminate the former Department Store, enhance and/or stabilize the tax base, improve the vitality of the Southridge Mall Area, attract new residents, and build the Village’s reputation and value.
Tax Incremental District (TID) #6 Information
Tax Incremental District (“TID”) #6 is a Blighted Area District created on November 15, 2022 with the purpose of paying the costs of infrastructure needed to allow the former Boston Store property to be developed. The Village anticipates making total expenditures of approximately $10.6 million to undertake the projects listed in the TID #6 Project Plan. Project Costs include an estimated $8.8 in infrastructure projects that the Village will be required to fund as part of the development agreement. The Village projects that new land and improvements value of approximately $100,190,000 will result from the project. Creation of this additional value will be made possible by the project costs made within the District. A table detailing assumptions as to the development timing and associated values is included in the Economic Feasibility Study located within the Project Plan. Based on the Economic Feasibility Study, the Village anticipates that the District will generate sufficient tax increment to pay all Project Costs within its allowable 27 years.
Frequently Asked Questions (FAQ)
1. What are the economic benefits of the project and how has this been quantified?
The project will generate millions in assessed value to a blighted 14.82 acre-parcel. It will provide jobs for the commercial space, in addition to the jobs to construct and maintain the facilities. Market rate apartments are planned with residents who will generate new economic activity which will also promote further reinvestment in the Southridge area. Apart from the economic benefits of this redevelopment project proper, it is anticipated that the ancillary benefits will be substantial. The regional mall commercial model has undergone significant change for the worse over several decades, resulting in bankruptcies and closures throughout the country (e.g. Northridge Mall). This has prompted mall owners to convert portions of developments to new uses, including mixed commercial/residential components. These conversions have brought new life to regional malls, preserving or increasing value.
2. What public meetings have taken place for this project?
Redevelopment of the Boston Store property and TID #6 was on the agenda at the following public meetings in 2020-2022:
• October 16, 2020 – Community Development Authority discussed blight designation of Boston Store property.
• November 20, 2020 – Community Development Authority discussed blight designation of Boston Store property.
• April 2, 2021 – Community Development Authority (with Public Hearing) approved resolution designating Boston Store as a blighted property.
• April 6, 2021 – Village Board approved designating Boston Store as a blighted property
• May 18, 2021 – Village Board approved purchase of Boston Store property
• June 1, 2021 – Village Board approved resolution to acquire restrictive covenants at Southridge Mall
• December 21, 2021 – Village Board approved development agreement for redevelopment project (to be conditioned upon zoning/permit approvals)
• April 19, 2022 – Village Board approved amendment to redevelopment agreement
• July 19, 2022 – Village Board approved amendment to the redevelopment agreement
• August 31, 2022 – Joint Review Board initial meeting and Plan Commission approval of TID 6
• October 4, 2022 – Village Board approved amendment to the redevelopment agreement
• October 18, 2022 – Village Board approved the creation of TID 6
• November 15, 2022 – Joint Review Board approved the creation of TID 6
• December 20, 2022 – Village Board approved amendment to the redevelopment agreement and conditionally approved an amended operating agreement for Southridge Mall.
Members of the public will have the opportunity to comment on the specific development plans, including site plan, architecture and landscaping, when the developer submits their zoning applications.
3. What was the previous valuation of the Boston Store property before it was purchased by the Village?
The property had an assessed value of $15.5 million in 2020. In 2021, the assessed value dropped to $5.0 million.
4. What guarantees are in place to ensure the development will occur as anticipatd and the property value occurs as expected?
During the term of TID 6, a minimum assessed value will be required, starting at $3.3 million in 2024 and increasing to $100.2 million by 2036. There are substantial personal and other guarantees (together with insurance requirements) detailed in Article III of the Redevelopment Agreement as well as substantial remedies available to the Village under Article VI of the Redevelopment Agreement.
5. Will any of the new apartment units be low-income units?
No, the apartments will all be upscale, market-rate apartments.
6. Are there redevelopment plans or sketches of the project?
The developer is expected to submit detailed development plans and permit applications after the completion of the due dilligence period. Members of the public will have the opportunity to review and comment on the specific development plans, including site plan, architecture and landscaping. Zoning-related approvals of the plans will be needed by Plan Commision and the Village Board.
7. What is the plan for the rest of the Southridge Mall?
The Village's Comprehensive Plan serves as the guide for redevelopment activities in the Southridge Mall area. The Village is also considering a Southridge Mall master planning effort, but the current focus is on the Boston Store property redevelopment which will ultimately have a large influence on any master planning.
Additional References
Tax Incremental District #6 Project Plan