Harland reaches tentative financial support deal for Riverwalk development

By Katherine Michalets - Freeman Staff

May 16, 2015

HARTLAND - The village has reached a tentative financial assistance agreement with developer Joe McCormick for his proposed Riverwalk apartments in the downtown area.

According to a memo from Village Administrator David Cox, McCormick initially requested $1.935 million in cash support, plus the no-cost transfer of two village-owned parcels to assist in redeveloping the land along the Bark River. He later clarified that he wanted interest of 5 percent on any amount of support that was paid over time via a municipal revenue obligation or similar tool.

The tentative agreement reached between village staff and McCormick this past week includes total support of $1.75 million and approximately $500,000 would be paid by the village immediately upon the completion of certain aspects of the project, including building demolition, village utility construction and other work, according to the memo.

The $1.2 million balance of the support would be paid over time at no interest and 90 percent of the annual taxes on the increment would be committed to the developer for payment of the support. The 10 percent balance of the annual increment taxes would be retained by the village for expenses.

The anticipated value of the East Capitol Drive development is between $8 million and $8.5 million, with a predicted incremental value of $7 million, according to the memo. It would contain three buildings two that would be all apartment units and a third with retail on the first floor and residential above.

A joint Village Board and Plan Commission meeting will be held following the Joint Architectural Board/Plan Commission meeting at 7 p.m. Monday to discuss the proposed financing. The meeting will be held in the Municipal Building Board Room, 210 Cottonwood Ave.

A public hearing on the request may be held 7 p.m. June 4.