Mukwonago Main St. property to be sold for over $1M

By Brandon Anderegg

Feb. 21, 2019

MUKWONAGO ó The Village Board approved a counteroffer to sell the former Lynch car dealership at 915 Main St. for $1,050,000 following a closed session meeting Wednesday night.

Walker & Dunlop Senior Vice President Mikko Erkamaa has proposed developing the property into three buildings containing a total of 84 apartment units, said John Weidl, village administrator and economic development director.

As part of the counteroffer, the village would like to amend the developerís agreement regarding the developerís letter of credit. The village proposed returning half a letter of credit to the developer once the first apartment building is complete and the other half when that building has permits for occupancy.

A letter of credit is essentially a dollar amount or a safeguard that municipalities use to ensure that developers follow through on their project plans. Despite the developer agreement approval, the Plan Commission and Village Board will still have to review the apartment complex proposal before itís officially approved.

The Village Board also approved spending approximately $80,000 to $100,000 to tear down the former Lynch dealership in preparation for the proposed development. The 915 Main St. revitalization project includes razing the building, treating contaminated soil and leveling the property with topsoil.

The village purchased the 4.5-acre property for $1.2 million in 2014 and it has sat vacant since then.

According to a state of the village PowerPoint, the project could generate up to $10 million in new taxable development. Weidl did not want to discuss the specifics of the developerís agreement. Weidl referenced the property in a previous article where he suggested a developerís agreement for the property could generate $3.8 million in payments to the village over 20 years.