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1. Beautification tax plan sparks dispute
By Tom Daykin of the Journal Sentinel
Jan. 4, 2013
Land and Space
Journal Sentinel business reporter Tom Daykin blogs about
commercial real estate and development
With Milwaukee's far northwest side marked by several
empty commercial buildings, some neighborhood business
owners want to tax themselves to pay for street beautification work
and other improvements.
But others oppose that plan, questioning whether it would benefit their
properties.
That raises the larger idea of what duties, if any, do individual
commercial property owners owe the surrounding neighborhood.
"Is it the business owner's responsibility to try to improve the area? I
don't know about that," said Larry Kamke, president of United Tool
Inc., 8219 W. Bradley Road, and an opponent of the proposed tax.
That view bothers Gary Mohn, board secretary of Granville-Brown Deer
Chamber, an organization of area businesses and community groups
leading the effort to impose the tax.
"I'm not a bleeding-heart liberal, but there's got to be some social
responsibility for the area," said Mohn, chief executive officer of
Alexian Village of Milwaukee Inc., a senior housing complex at 9301 N.
76th St. "If you have your business there, that's home."
At issue is a proposed business improvement district, a public agency
created under state law with the power to levy a tax on commercial
property owners within a certain area.
The district would be bordered roughly by W. Good Hope Road, W.
Glenbrook Road, N. 60th St. and N. 95th St. Commercial property
owners would pay a fee of $1 per $1,000 of assessed value, with a
minimum annual fee of $200, and a maximum annual fee of $2,000.
That would raise more than $345,000 in 2013.
The proposed budget calls for spending $60,000 in neighborhood
cleanups, new signs, and trees and perennial plants for the area's
boulevards; $40,000 on community outreach initiatives; $155,000 for
marketing and promoting the area; $70,000 for administrative and
management expenses; and just over $20,000 for a reserve fund.
The district, endorsed by the Plan Commission and Department of City
Development, requires Common Council approval.
2. New uses for Northridge
The district was proposed by chamber members looking for ways to
revive the northwest side, including its W. Brown Deer Road
commercial strip.
Along with the closed Northridge Mall, the area has experienced recent
losses of large stores.
Walmart closed its store south of Brown Deer Road and west of N.
76th St. last week after the world's biggest retailer opened a new
supermarket-discount store at 10330 W. Silver Spring Drive. Others
that have closed over the past year or so include a Lowe's home
improvement store in neighboring Brown Deer, and a Stein Gardens &
Gifts.
On the N. 76th St. strip, Walmart is looking to replace the Sam's Club
store at N. 76th St. and W. Calumet Road.
Much of the area's deteriorating retail landscape is tied to the 2003
demise of Northridge.
The mall's former Sears building was torn down and replaced with a
Pick 'n Save supermarket and a Menards home improvement store, a
project that city taxpayers helped finance. But the rest of the mall
remains vacant and is now facing a foreclosure suit after the owner's
plan to redevelop the property failed.
Creating new uses for the Northridge site, which is among the subjects
of an upcoming study commissioned by Milwaukee and Brown Deer, is
a key part of reviving the surrounding area, Mohn said.
He said the former mall could be demolished, with vacant parcels sold
to investors interested in building office and light industrial buildings.
Those new buildings would be a good fit for the area, Mohn said. Back
offices for Monster Worldwide Inc. and Foot Locker Inc. are in a
building next to the former mall, and there are light industrial buildings
at the nearby Bradley Woods Business Park and other area locations.
Northridge is listed for sale with Cassidy Turley Barry, a Milwaukee
commercial real estate brokerage that focuses on industrial properties.
Cosmetic improvements
Aside from Northridge, the area needs additional work to help it thrive,
Mohn said.
The district would play a role in giving heavily traveled Brown Deer
Road and 76th St. a new look, Mohn said.
"People pass through here," Mohn said. "We only need to come up
with a way to make them stop."
Kamke, of United Tool, and Gary Lasky, president of Amera Gear Co.,
8828 W. Dean Road, are dubious.
"They're not going to clean up the neighborhood by cleaning up the
streets and beautifying them," Lasky said.
3. Both Kamke and Lasky would rather see money spent on improving
security in their business park. United Tool this year installed a parking
lot fence after three employees were the victims of car break-ins.
Kamke, Lasky and other opponents acknowledge the amount they'd
pay to the business district isn't huge. But, as they fight to earn a
profit in a sluggish economy, they don't want additional costs -
especially for things they say would do little to help their companies.
Some businesses support the district. That includes the owners of
commercial printing firm Kubin-Nicholson Corp., 8440 N. 87th St.
"We want a nicer neighborhood," Beth Hafemann, the company's
human resources director, said at the Plan Commission hearing.
The proposed budget could be changed by the district's board if the
proposal wins council and mayoral approval, Mohn said. The board
would be made up of commercial property owners from the northwest
side, and they could decide to spend the money on security instead of
marketing or other uses, he said.
The district could improve the area, said James T. Barry III, president
of Cassidy Turley Barry, which is listing Northridge for sale. But he
understands why industrial business operators don't want to pay for
improvements to the retail strips.
Mohn said the proposed district has wide support, and presents a stark
choice.
"Are you going to whine, moan and complain, or do you want to be
part of the solution?" Mohn said.