Townhome units proposed near Flambeau River

The company based in the Madison area is proposing 8 one-bedroom units, 16 two-bedroom units and 16 three-bedroom units. The cottage style buildings would utilize a majority of the 5.25 acre property for the residential development.

Its proposal calls for the city to sell the property to Commonwealth for $1 “to ensure extensive value engineering is not required and the municipal assistance request remains within reason.”

“This single-story build has been developed across the country, garnering high occupancy ratings given the luxury of large floor plans for families. This style also welcomes the opportunity for elderly or persons with mobility issues to occupy our units,” company officials state on their proposal.

Each unit will feature an attached single-car garage stall. Also planned is a free-standing community building for tenant amenities including a fitness center, business center and leasing office.

“In our opinion, the proposed cottage style build is the best way to achieve adequate density while ensuring deal feasibility in a manner that does not overcrowd the development site,” company officials said.

The site is south of Phillips Avenue, between E. Third and E. Fourth streets. It is along the north shore of Flambeau River.

The property was formerly used to house a city/county animal shelter, city gravel piles, vehicles, signs and water and sewer utility related materials. The former animal shelter was situated on a concrete slab and was razed in 2018. A city garage on a cement slab and remaining utility materials and gravel piles will be removed prior to transfer of the property. Phillips Avenue was rebuilt in 2017-18 including new water and sewer utility lines and a new paved road surface.The property is set among a number of uses, predominantly R-1 Single Family Residential The project site is located along the residential Phillips Avenue and shares a neighborhood with both single and multifamily housing in the immediate area.

A leash-free dog park is located adjacent to the property. The city owns the river frontage on the south shore of the Flambeau River. The property is within a Tax Increment District the city formed in January 2021.

The decision came after two closed sessions last week, one at the city council’s regular meeting on July 25 and a second at the special meeting on July 27.

“Commonwealth has a long tenure of new construction projects and has a unique yet sophisticated way of utilizing the existing greenery as part of the development and plan to lean on this experience to ensure an emphasis is placed on the beautiful Flambeau River,” the company’s proposal states. “Commonwealth’s successful experience with a variety of housing development types, funding sources and end users will guide the development methods and strategy necessary for the task at hand.”

City officials issued a Request for Proposals with a July 1 deadline for the RFPs to be returned. City documents showed the project envisioned to be a workforce housing development of approximately 20-40 units ranging from 1-4 bedrooms depending on developer needs. Construction should be done in a manner to complement existing residential construction in the surrounding neighborhood, 1-2 stories with garage parking for residents. The desired completion date for the project is no later than Dec. 31, 2024.

A preliminary site plan shows five housing buildings. Preliminary designs have been drafted by the Fond du Lac architectural design firm M+A Design Inc.

Four buildings would be inside a loop road with two access points to Phillips Avenue. These include two 10-unit structures and two 5-unit structures with a stormwater retention pond in the middle.

A fifth structure with 10 units and a separate clubhouse building are proposed between the loop road and a wide conservancy area along the Flambeau River floodplain.

A timeline for 2022 calls for obtaining zoning and conditional use permits, holding design meetings in the city on desired building features and begin preparing low income housing tax credit applications in the summer and submitting those LIHTC applications to the Wisconsin Housing and Economic Development Authority in winter.

A timeline for 2023 calls for receiving reservation of WHEDA tax credits, securing an LIHTC investor and lender, submitting an application for necessary gap financing, and beginning architectural drawings in spring. Summer work includes initiating phase one environmental review, ordering a certified survey map and beginning underwriting and due diligence process with investors and lenders. Fall work includes submitting WHEDA carryover application, announcing AHP gap financing, continuing design work, receiving state plan approvals and sending plans for subcontracting bidding. Winter work includes closing on financing and starting construction.

A timeline for 2024 calls for starting to market the project in summer, pre-leasing in fall and completing construction with resident occupancy in winter.

Projected rents based on area median income is a one-bedroom unit at $412 per month at 30 percent AMI, a two bedroom unit at $848 per month at 50 percent AMI or $975 per month at 60 percent AMI and a three-bedroom unit at $972 per month at 50 percent AMI or $1,118 per month at 60 percent AMI.

Company officials propose the first step of the development process will be to conduct a meeting with local stakeholders in the community including staff, commissioners, residents and city agencies to identify specific design elements and address any additional items the city deems necessary for a successful redevelopment of the Phillips Avenue parcel.

“Commonwealth strongly believes that we can bring revitalization to this corridor with certain high-quality characteristics resulting in improved marketability and viability to the area, resident’s well-being and the overall quality of life,” they state in the proposal.

Company officials project the development will cost $10.5 million and generate an additional $40,000 in annual property taxes for the city. In exchange, company officials are requesting an additional $250,000 from the city.

“Commonwealth wants to ensure the development and delivery of a quality product and believes this is a fair request given the current construction market,” its officials stated.

Commonwealth, which incorporated in 2002, lists other cottage and townhome developments including Cherokee Place ion North Branch, Minn., Magnolia Pointe Apartments in Florence, S.C., Mission Village of Evans in Evans, Colo., and Mission Village of Pecos, in Pecos, Texas. The for-profit company ranked ninth in the “Top 50 Affordable Housing Developers of 2021” by Affordable Financing Magazine, three spots up from its prior position. It achieved this with 1,230 starts last year and 755 completions. It was named Best Affordable Housing Developer 2020-USA by BUILD Magazine.

In Wisconsin, it has has 49 development completed, two under construction, three in pre-development, three completed turn-key projects and 12 completed and sold projects. Its existing projects in the state include Muskego, Kaukauna, Hortonville and Plover with developments in Ashland, Mosinee and Fond du Lac slated for construction this fall. It has 88 total projects with 5,058 total units across the nation.

Several years ago, city officials were seeking a much different development at the site.

A 2019 proposal showed a base concept plan with about 1,100 lineal feel of new street and 10 residential lots ranging from about 1/4 to 1/2 acre, plus two lots the city would retain due to the lift station and the old treatment plant (dog park). A conservancy outlot would be preserved along the river. 

An alternate concept plan would result in a large city lot plus 6 residential lots, three which are about one-half acre, and three which are about 1.5 acres. The alternate concept includes about 750 lineal feet of new street. Developing the lots for construction to occur was projected at $355,000 for the base concept and $227,000 for the alternate concept.