Eco-Bay discussed, criticized

Approximately 100 people attended a public meeting May 26 hosted by 14th District Alderman Tony Zielinski to discuss the Housing Authority’s proposed development of the 5.6-acre former Army Reserve site at 2372 S. Logan Ave.

“Eco-Bay” would be a net-zero development, meaning the site would produce at least as much energy as it consumes. This would be accomplished through solar rooftops, superior insulation, and geothermal heating, though no specific strategies detailing costs and benefits were presented.

The Housing Authority hired Quorum Architects to prepare the design and plan for the Eco-Bay RFP. Principal Allyson Nemec said Quorum approached the Housing Authority for the design job because she suspected the Housing Authority’s financing capabilities would provide the clout to win the net-zero project. 

The Housing Authority/Quorum plan includes 120 units for seniors 55 and older along Bay Street in two multifamily structures. Twelve would be market-rate one-bedroom units; 28 would be market-rate two-bedroom units. Eighty would be subsidized one-bedroom units with some public financing for two different tiers of “low-income” seniors.

Twelve single-family homes estimated to cost $300,000 would be located along the western edge of the development, facing Logan Avenue. Four structures comprising eight town homes would front Conway Street to the south. Public green space would be incorporated in the site’s southeast quadrant, which developers said would be accessible to the broader public, not just Eco-Bay residents.

Milwaukee’s Department of City Development fielded seven proposals to develop the property by the Jan. 23, 2009 deadline. A DCD review committee selected the Housing Authority’s proposal.

Residents who testified May 26 criticized the opacity of DCD’s process and wanted to provide public input. Many felt the Housing Authority’s low-income senior housing proposal would not generate the most tax revenue possible for the property, whose request-for-proposal included a goal to “expand tax base and maximize the return to the city.”

The Housing Authority estimates Eco-Bay would generate $150,000-$200,000 annually in taxes. But DCD did not make the competing proposals public, so residents lacked the context for comparison. They suspected that private developers’ plans would produce more tax revenue.

Tax revenue depends on assessed value, and Alderman Zielinski pointed out that the assessment of subsidized property, like portions of the Housing Authority’s proposal, is based on actual income and expenses, which results in lower assessments and less tax revenue.

“Clearly, we would like the city to take another look at this massive opportunity,” testified Eric Wagner, co-owner of Café Centraal, who wanted to see more tax revenue from developing the parcel.

Others worried about the compatibility of Eco-Bay with the surrounding neighborhood. Density was an issue for some, though the RFP called for 75-150 residential units.

DCD’s Casanova said every project considered included a majority of multifamily units, that Housing Authority’s was the densest proposal, and that competing projects faced difficulty securing financing. Housing Authority’s Warren Jones said they were not seeking any tax-incremental financing, though Housing Authority has proposed buying the site for just $2, when the asking price is $2,030,000.

Zielinski said he had initially envisioned more young urban professionals living in the net-zero development, to mesh with a proposed Bay Street Kenosha-Racine-Milwaukee rail stop. However, the Bay Street stop’s fate is in limbo because a National Avenue stop has been advocated at the committee level of the Wisconsin state Legislature instead.

While not everyone agreed, several residents spoke in favor of senior housing in Bay View.

Heather Ryan said she saw a “huge need for this kind of housing, some subsidized, some not.”

“It’s sad when we’re placing our elderly out of the community,” said Ryan, who pointed to three aging neighbors who were recently forced to move out of Bay View.

CORRECTED (9/18/2009): The printed and previous version incorrectly indicated the proposed site price was $1. HACM proposes to buy the site for $2. To date, the site has not yet been sold.

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