Common Council approves Arrabelle TIF funding
Apartments, townhomes project will need to be completed by Dec. 31, 2019

By Laurie Arendt - News Graphic Staff

Feb. 15, 2018

CEDARBURG — One more step remains before the Arrabelle apartment project receives the go-ahead from the city of Cedarburg after Monday night’s approval by the Common Council.

The vote series, which occurred after a closed session of about an hour and 15 minutes, approved the planned unit development agreement and tax incremental financing agreement with Arrabelle developer HSI Properties, among other related items.

The development on Hamilton Road and Washington Avenue consists of 69 apartments in two buildings, nine townhomes and a single-family lot.

The main resolutions passed 6-1, with council member Dick Dieffenbach casting the dissenting vote for all. The only unanimously approved measure was the certified survey map for the property.

“It’s still a big chunk of money,” Dieffenbach said. “I find it hard to believe that a project like this needs a big chunk of money at the last minute.”

The approved TIF means the city will spend a total of $1.981 million on the district, $1.925 million in developer incentive payments and $56,500 in administrative expenses. In return, the investment will create $8.4 million in land value and improvements for the city.

Highlights of the developer’s agreement include:

A timetable for performance and completion of improvements, including a start date of July 31, 2019, and a project completion date of Dec. 31, 2019

Required public improvements, including the creation of a vision triangle in front of the church

A cross-parking easement with St. Francis Borgia Church.

Additionally, a few amendments were made to the original agreement during the closed session. HSI Properties requested permission to pursue occupancy once each building was completed, which will be allowed upon successful inspections by the city’s building and fire inspectors and the obtaining of an occupancy permit.

A change was also made to the TIF agreement for a “clawback” provision should HSI sell the property or cash-out refinance the property under certain financial conditions. The clawback would automatically be triggered and require the payback of funds to the city.

Additionally, the Common Council approved an extension of HSI’s PUD agreement on the same 6-1 vote.

“The developer does not have a building permit yet, and has been waiting to receive approval on this project before obtaining one,” explained City Planner John Censky, who noted it would be expiring before the likely start of the project.

The final municipal step in the Arrabelle project is the approval of the measure by the city’s Joint Review Board, which is scheduled for Feb. 27.

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