Appleton Common Council District 6 Update for the Week of May 22, 2023 (addendum)

Greetings District 6 Neighbors, 

As promised (threatened?) I have some more notes on the discussion of the Fox Commons project at the Community and Economic Development Committee meeting Wednesday night.

Basically, a development group (Fox Commons Properties, LLC) has proposed to convert City Center Plaza into a mixed-use center (to be called Fox Commons) that would have housing, “supportive services”, healthcare, retail and commercial uses. Although the healthcare tenant was not named in the development agreement, the Post Crescent reports that it is Mosaic Family Health. 

The development is part of Tax Increment Financing District 11, and the city proposes “pay as you go” support to the developer from the TIF increment. 

A bit of TIF 101: 

In a TIF district, or TID, the assessed (taxable) value of the all the properties is calculated at the opening of the TID. Development in the district that increases the assessed value – new buildings, improvements, etc., becomes the increment value. The increment value stays in the TID and can be used to contribute to projects, either by developers, or by the city to create infrastructure (see the upcoming proposal for a new TIF district for the Southpoint Commerce Park).  

The cost of the Fox Commons project is estimated at $33.6 million. The assessed value of the completed project is estimated at $17.3 million. The reason for the difference is the non-profit owner of part of the proposed condominium project (reportedly Mosaic Family Health) being tax exempt. The base value is a little under $2 million, so the increment value would be about $15.3 million. At the completion of the project, assuming the value reaches the proposed assessed value, the city would begin paying $301,500 each year until they reach the agreed upon contribution of  $4,357,550. These funds will be paid from the tax increment in the TIF, not from the regular city budget.  

 

The development agreement has some stipulations for the project that are favorable to the city, including guaranteed pedestrian access between City Center East and West and City Center Street and College Avenue and stipulations for the first-floor retail spaces to have access from College Avenue and a “pedestrian orientation”. There is also a prohibition on any of the housing being used as temporary rental units (VRBO/AirBnB). 

 

While I would LOVE to see City Center become something like the Milwaukee Public Market, the city is not in the real estate development business, so we look to private enterprise to take on projects that they believe will be profitable. As someone who walks through City Center several times a week, I know that it needs revitalization. Developers were asked about any plans for a grocery store – something that is sorely needed in the downtown space. While they did not give any particulars, city staff noted that Appleton Downtown, Inc. was also working to make this happen. We hear talk about Trader Joe’s all the time, but it’s pretty clear that Appleton does not fit with their business model. Currently, the only Wisconsin locations are in Madison, Milwaukee and Brookfield. They have a certain threshold for population within a ten-minute drive, and Appleton does not measure up to the  other three. Honestly, it would be great to see a local business enter the downtown grocery market. It’s a high overhead business, but I think a grocery store could be successful downtown as all the new residential developments both downtown and in the College North neighborhood come online. 

 

We were also presented with an information item about a potential new TIF for Southpoint Business Park. This would allow development of the land between Eisenhower and Coop Road. As noted above, TIF increment can be used to fund infrastructure development (water, sewer, electrical, etc.) to attract industry to this area. A very successful TIF for Southpoint was recently closed. 

 

You can see the map of Southpoint here: https://www.appleton.org/home/showpublisheddocument/712/638110141796400000 

 

The large plots are mostly sold and developed – expanding the infrastructure would allow us to attract some larger industrial/commercial buyers. 

 

More about this in the coming weeks as the plans move forward. 

 

Enjoy the long weekend – the weather looks gorgeous. If you are staying in town, I hope your plans include watching the Appleton Memorial Day parade and the “Moment of Remembrance” ceremony. I’ll be walking with my colleagues on the Common Council. 

 

https://www.appleton.org/visitors/appleton-parades/memorial-day-parade 

 

 

Have a wonderful weekend, but take a moment to remember the reason for the holiday.

As promised (threatened?) I have some more notes on the discussion of the Fox Commons project at the Community and Economic Development Committee Wednesday night. 

Basically, a development group (Fox Commons Properties, LLC) has proposed to convert City Center Plaza into a mixed-use center (to be called Fox Commons) that would have housing, “supportive services”, healthcare, retail and commercial uses. Although the healthcare tenant was not named in the development agreement, the Post Crescent reports that it is Mosaic Family Health. 

The development is part of Tax Increment Financing District 11, and the city proposes “pay as you go” support to the developer from the TIF increment. 

A bit of TIF 101: 

In a TIF district, or TID, the assessed (taxable) value of the all the properties is calculated at the opening of the TID. Development in the district that increases the assessed value – new buildings, improvements, etc., becomes the increment value. The increment value stays in the TID and can be used to contribute to projects, either by developers, or by the city to create infrastructure (see the upcoming proposal for a new TIF district for the Southpoint Commerce Park).  

The cost of the Fox Commons project is estimated at $33.6 million. The assessed value of the completed project is estimated at $17.3 million. The reason for the difference is the non-profit owner of part of the proposed condominium project (reportedly Mosaic Family Health) being tax exempt. The base value is a little under $2 million, so the increment value would be about $15.3 million. At the completion of the project, assuming the value reaches the proposed assessed value, the city would begin paying $301,500 each year until they reach the agreed upon contribution of  $4,357,550. These funds will be paid from the tax increment in the TIF, not from the regular city budget.  

 

The development agreement has some stipulations for the project that are favorable to the city, including guaranteed pedestrian access between City Center East and West and City Center Street and College Avenue and stipulations for the first-floor retail spaces to have access from College Avenue and a “pedestrian orientation”. There is also a prohibition on any of the housing being used as temporary rental units (VRBO/AirBnB). 

 

While I would LOVE to see City Center become something like the Milwaukee Public Market, the city is not in the real estate development business, so we look to private enterprise to take on projects that they believe will be profitable. As someone who walks through City Center several times a week, I know that it needs revitalization. Developers were asked about any plans for a grocery store – something that is sorely needed in the downtown space. While they did not give any particulars, city staff noted that Appleton Downtown, Inc. was also working to make this happen. We hear talk about Trader Joe’s all the time, but it’s pretty clear that Appleton does not fit with their business model. Currently, the only Wisconsin locations are in Madison, Milwaukee and Brookfield. They have a certain threshold for population within a ten-minute drive, and Appleton does not measure up to the  other three. Honestly, it would be great to see a local business enter the downtown grocery market. It’s a high overhead business, but I think a grocery store could be successful downtown as all the new residential developments both downtown and in the College North neighborhood come online. 

 

We were also presented with an information item about a potential new TIF for Southpoint Business Park. This would allow development of the land between Eisenhower and Coop Road. As noted above, TIF increment can be used to fund infrastructure development (water, sewer, electrical, etc.) to attract industry to this area. A very successful TIF for Southpoint was recently closed. 

 

You can see the map of Southpoint here: https://www.appleton.org/home/showpublisheddocument/712/638110141796400000 

 

The large plots are mostly sold and developed – expanding the infrastructure would allow us to attract some larger industrial/commercial buyers. 

 

More about this in the coming weeks as the plans move forward. 

 

Enjoy the long weekend – the weather looks gorgeous. If you are staying in town, I hope your plans include watching the Appleton Memorial Day parade and the “Moment of Remembrance” ceremony. I’ll be walking with my colleagues on the Common Council. 

 

https://www.appleton.org/visitors/appleton-parades/memorial-day-parade 

 

 

Have a wonderful weekend, but take a moment to remember the reason for the holiday.