The Way I See It!

Guest Blog - Concerned Cudahy Citizen on Development

Posted by Randy Hollenbeck on Oct. 7, 2009

Cudahy, Development, Guest Blog

Randy, please post for me!

When the Wal-Mart in 2007 was looking at building on the Layton and Pennsylvania site the development value was $30 Million and Wal-Mart was not asking for TIF money.

Now in 2009, the developers Cobalt Partners are rumored to bringing in Shopco and the development value is only $18 million plus the city has to kick in $6.6 million toward a retail project and it doesn’t even have to start until the end of the legislative session in 2011.  Retail value of less than $12 million then.

Cobalt Partners can just sit on the land until it gets a bill passed while the Cudahy people get nothing!  If it wasn’t for the breaking story from Tom Kertscher, Cudahy citizens would be in the dark.

So Mayor Ryan McCue is ok with using TIF money as long as it is not Wal-Mart and Cudahy has to wait until 2012 to have development happen on the land.  Something is just wrong in Cudahy.  Replace all of the elected city people and the CDA and committees.

Here is the story referenced above.

Cudahy OKs unusual financing plan for proposed development

By Tom Kertscher of the Journal Sentinel

Posted: Oct. 7, 2009 5:10 p.m.

Cudahy — The Common Council on Tuesday approved an unusual agreement with a developer under which the city would contribute $6.6 million toward a retail project, but only if the developer can get a bill passed by the Legislature.

Cobalt Partners of Milwaukee has until the end of the legislative session in 2011 to get the bill approved.

The legislation would allow Cudahy and other local governments to spend excess property tax revenue generated by one tax incremental finance district in another TIF district, according to attorney Sara Eberhardy, chairwoman of the Cudahy Community Development Authority.

Eberhardy said Wednesday that the city used a TIF district to redevelop the area around the Cudahy Connection condominium project.  The redevelopment has generated more than enough property tax revenue to pay off the debt that was used to finance the redevelopment work, she said.

The city would like to use $3.1 million of that excess in creating another TIF district for the southwest corner of Layton and Pennsylvania Aves., Eberhardy said.  The money would buy parcels near that intersection that are owned by the city and Milwaukee County, she said.

The city would acquire the parcels only if a bill is passed to allow the movement of tax revenue from one TIF district to another.  If such a bill is passed, the city would create the new TIF district and borrow $3.5 million that would be used toward an environmental cleanup of the land.

As long as a TIF district stays active, its property tax revenue is used to pay off debt and doesn't flow to the rest of the city, the school district and other local governments.

Ultimately, Cobalt plans to put a retail development at the site, Eberhardy said. Under the development agreement, the project would have to have a value of at least $18 million, she said.

Some of the land near the intersection that is used as a dump would continue to be used as a dump, Eberhardy said.

http://www.cudahynow.com/news/63705367.html