Two Milwaukee affordable apartment developments could get $2.7 million in city financing

Two Milwaukee affordable apartment developments would together receive $2.7 million in city financing help under a pair of new proposals.

The 140-unit Kin at Freshwater, in the Harbor District at 200 E. Greenfield Ave., and the 60-unit Bronzeville Creative Arts and Technology Hub, 618 W. North Ave., would receive funds through new tax incremental financing districts proposed by Mayor Cavalier Johnson's administration.

The districts, which need Common Council approval, provide funds through the new development’s property tax revenue.

Without the financing districts, the increased property tax base from the developments would be immediately available to the city, school district and other local governments. But the developments would not occur without the financing districts, according to the developers and the Department of City Development.

Kin at Freshwater would include 1,300 square feet of street-level office space for nonprofit health care worker trainer Unite WI Inc. It is planned for a city-owned vacant lot at the Freshwater Plaza mixed-use development and is being developed by Rule Enterprises LLC and Emem Group LLC.

The $44.4 million development is to receive $2 million in TIF financing.

Bronzeville Creative Arts and Technology Hub, which includes 28,750 square feet of commercial space − featuring production space for filmmakers, musicians and other creatives − is planned for a city-owned vacant site in the Bronzeville neighborhood. It's being developed by Fit Investment Group LLC.

The $29 million development is to receive $700,000 in TIF financing.

The tax districts will get initial public hearings before the Redevelopment Authority board at its July 10 meeting.

Both developments are receiving other public financing, including affordable housing tax credits.

Developers receiving those credits must provide most of the apartments at below-market rents to people generally earning no more than 60% of the area median income. The credits are sold to raise equity financing. A developer then typically obtains a bank loan, and perhaps other cash sources, to complete the financing.

Construction is to begin this fall on both Kin at Freshwater and the housing portion of Bronzeville Creative Arts and Technology Hub. The apartments would be completed by early 2026.

Also, the Redevelopment Authority board will consider two loans totaling $1.5 million to finance an environmental cleanup for another Harbor District affordable housing development at 100 E. National Ave.

Kenosha-based Bear Development LLC is to build the 140-unit 100 East apartment community, which includes 3,700 square feet of street-level commercial space. The Common Council and Mayor Johnson in June approved a $2.17 million tax financing district for that $54.6 million project.

Its construction is to start by Aug. 31 and be completed by May 2026.

The cleanup loans come from an authority fund that receives grants from the U.S. Environmental Protection Agency.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, X and Facebook.