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
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.