Showing posts with label Redevelopment Authority. Show all posts
Showing posts with label Redevelopment Authority. Show all posts

April 6, 2010

Another twist for proposed new construction in West Racine

As if it needed another twist, the proposed grocery store, restaurant and gas station got one.

The city's Redevelopment Authority is scheduled to take up the project Wednesday and early indications are the committee isn't happy that project is expected to cost less than $5 million to build (how much less is a matter of dispute).

But Tom Tousis, who wants to build on the vacant lot at the corner of Washington Avenue and West Boulevard, is responding to the city with a cryptic agenda item that could further complicate a complicated project.

Tousis sent the city a letter requesting the RDA add an agenda item that reads, "Concerns about the condition of West Racine Redevelopment site (Washington Market site) and liability issues resulting from recent discovery." Tousis' team won't reveal what the "discovery" is until Wednesday's meeting.

It should make for interesting discussion, especially since it was added to the agenda right after the committee takes up Tousis's request for an extension for the West Racine redevelopment project.

The bigger question, though, may be whether the RDA pulls enough members together to hold a meeting. The RDA has canceled its last two meetings due to a lack of quorum.

March 27, 2010

Nicholson may serve on Redevelopment Authority

If the Redevelopment Authority ever gets enough of its members together to hold a meeting, it looks ready to make some changes.

Chairman John Crimmings, who served on the RDA for 20 years, was set to resign from the volunteer committee earlier this month. But not enough members showed up to hold an official meeting, and his resignation is now likely put off until the RDA's April 7 meeting.

Meanwhile, Mayor John Dickert appears ready to name a replacement. Doug Nicholson, owner of Ivanhoe Pub and Eatery on Main Street, has been asked to fill the vacancy.

Crimmings' appointment was schedule to end in 2012, so his replacement likely would finish out this term. Full appointments to the RDA, which is the technical owner of city property set aside for redevelopment, are for five years.

According to the city website, RDA terms for Alderman Jim Spangenberg and state Rep. Cory Mason are set to expire next month.

Other members of the seven-member RDA include: Scott Terry, Pete Karas, Robert Ledvina and David Lange.

March 9, 2010

Crimmings to resign as chairman of the city's Redevelopment Authority

John Crimmings, long-time chairman of the city's Redevelopment Authority, plans to resign from the board. He'll do it as soon as enough members show up to hold a meeting.

For the second week in a row the RDA failed to draw enough members to hold a legal meeting. As a result, Crimmings had to put off his announcement.

Crimmings (right), a Realtor who is vice president, general sales manager for First Weber in Racine, is resigning after more than 20 years on the volunteer board, which owns and manages property for the city.

"I was going to announce it tonight," he said about his plan to resign. "I've been talking about it for quite some time."

Only three of the RDA's seven members showed up Tuesday night. Crimmings, Alderman Jim Spangenberg and member Bob Ledvina attended. State Rep. Cory Mason, Scott Terry, Pete Karas and David Lange didn't attend. The committee was one member short of being able to hold a legal meeting.

"I'm very disappointed we can't get a quorum," Crimmings said. "It's very frustrating."

Crimmings was appointed in the late 1980s by Mayor Owen Davies. He replaced Marion Langdon, a School Board member for many years who was very well known in local real estate. Crimmings said he enjoyed his time on the board.

"It's a great organization to be a part of. In the first 10 or 12 years I was on this commission, you could meet just three or four times a year. In the past five to seven years, there's a lot going on; very significant issues. Development and redevelopment are very important," he said.

As for why now, Crimmings said: "I think it's just time. Anytime you're part of a volunteer committee for that long, you start having an effect on everyone else. That's either positive or negative. There's enough going on, it'll be good to bring new ideas."

Crimmings, who is not paid to serve as chairman, added the RDA "is costing me money, because I can't have any dealings with the city. I'm sure some people think I'm making a lot of money by serving on the Redevelopment Authority."

Mayor John Dickert will appoint Crimmings' successor and RDA members will elect a new chairman. The RDA is next scheduled to meet on April 7.

February 8, 2010

Tousis makes $5,000 payment to secure West Racine option


(Above) Realtor Karen Sorenson, Landmark Title owner Mike Staeck and City Development Director Brian O'Connell meet in O'Connell's office on Monday afternoon. Staeck was delivering a check from Developer Tom Tousis to secure an option on land at the corner of Washington Avenue and West Boulevard in West Racine.

Tousis intends to build  a grocery store, gas station and restaurant on the site. His plans were delayed, however, when it was discovered a stormwater pipe was bisecting his proposed building. The city's Redevelopment Authority, which technically owns the property, voted last week to give Tousis until Monday at 4:30 p.m. to make a $5,000 payment to secure the option. The check was delivered Monday at 4:10 p.m.

Tousis' proposal now heads to the City Council for approval. It's scheduled to go to the Access Corridor Review committee, which will evaluate the merits of the project. O'Connell said Monday it's unclear when Tousis' proposal will be taken up, because changes are likely coming to the project. 

February 3, 2010

Proposed West Racine grocery store, gas station faces Monday deadline


Jim Spangenberg, Nicole Loop, Brian O'Connell, John Crimmings and Jean Wolfgang
at Wednesday's RDA meeting.


Developer Tom Tousis has until Monday at 4:30 p.m. to pay the city $5,000 or he'll lose an option on the West Racine site where he intends to build a grocery store, restaurant and gas station.

The city's Redevelopment Authority voted 3-2 to set the Monday deadline after Tousis missed a Jan. 16 deadline to make the payment. Tousis withheld payment after discovering a pipe on the property, located at Washington Avenue and West Boulevard, ran through the middle of his proposed building.

The standoff is based around the complicated, and distrustful, relationship between Tousis and city officials. Tousis claims the city has worked against his project, most recently, by not telling him about a stormwater pipe that runs through the property.

On the flip side, city officials are mystified by Tousis' unwillingness to meet deadlines and follow through on a development he's spent $30,000 on to this point.

Assistant City Attorney Nicole Loop said, legally, Tousis is in breach of contract for failing to pay the $5,000 on time.

"I'm at a loss of where this is coming from," she said.

"If he'd set out to complicate a matter, he couldn't have done a better job," O'Connell added about Tousis.

But the RDA was unwilling to kill Tousis' project Wednesday. Alderman Jim Spangenberg, an outspoken opponent of the proposal, moved to end Tousis' option on the land, but the motion died because no one else seconded the motion.

Cory Mason, a member of the RDA, then sifted through the issue and came up with a proposal to give Tousis until Monday to pay. Spangenberg then moved to set the deadline until Friday, but his amendment was defeated 3-2. The Monday deadline then passed 3-2, with RDA Chairman John Crimmings, Mason and Scott Terry voting in favor. Spangenberg and Robert Ledvina voted against the proposal.

It's unclear what Tousis will do next. He's deposited $5,000 with Landmark Title with the intention of releasing the money to the city when he gets a reliable survey on the West Racine site.

But the RDA made it clear Wednesday Tousis needs to pay the money directly to the city. If he doesn't, the option is dead and the project won't move forward.

"I really don't think he's going to come with the money," Spangenberg said. "I think he's afraid he's going to lose the money."

Karen Sorensen (left), who represented Tousis at the meeting, said the project is at a standstill until the city presents them with a survey showing all easements on the site.

"We never dreamed there was information that we didn't know," she told the RDA.



RDA approves community garden on Marquette Street

RUGN's map of its proposed community garden at 734 Marquette St.


As director of city development, Brian O'Connell's job doesn't usually involve agreeing not to develop land. But on O'Connell's recommendation, the city's Redevelopment Authority agreed to do just that Wednesday.

The RDA approved the Racine Urban Garden Network's ambitious plan to create a community garden on just over an acre of land at 734 Marquette St. The committee gave the new non-profit organization a five-year lease on the property, which effectively takes it off the market through 2015.

O'Connell admitted during Wednesday's meeting he usually doesn't support community gardens on land set aside for development. But he said the down economy and RUGN's well thought out plan convinced him a garden would be a good fit on the Marquette Street site.

"I feel confident we can work with them," he said.

Kandy Meyers and Nikki Aiello, of RUGN, presented the community garden plan to the RDA. Meyers said the site will lease out up to 80 plots on a sliding scale and include a food pantry plot, roadside garden beds, a dog walk area and a rain garden to collect stormwater runoff.

Under the lease with the RDA, which is the technical owner of the property, RUGN will take over the site "as is," O'Connell said. If the nonprofit secures a conditional-use permit for the garden, which shouldn't be a problem, its first task will be test soil on the site for contaminants. If the soil is dirty, RUGN will fill raised garden beds with soil trucked into the site.

Another challenge is water for the garden plots. There's no water hookup to the property, which means gardeners will have to carry in their own or rely on rain. Aiello and Meyers said they'll use rain barrels and other tanks to get water to the site.

RDA members approved the garden unanimously. It now goes to the City Council for final approval.

RUGN is a nonprofit dedicated to promoting gardening in the Racine area. The nonprofit's website says:
RUGN seeks to promote a strong gardening effort in the Racine area, and to create a network of resources and education to improve sustainable gardening and farming. RUGN will serve as a central point to connect individuals and organizations that each have visions for their own gardens, and to find available land and resources for people to start gardening projects. The goal is to facilitate communication amongst all who have the initiative to start a garden.

December 10, 2009

Special meeting set on proposed West Racine grocery store

The city's Redevelopment Authority is scheduled to meet in closed session Monday at 4 p.m. to discuss the proposed grocery store with gas pumps in West Racine.

Tom Tousis's proposal for the corner of Washington Avenue and West Boulevard is the only item on the agenda for the RDA's special meeting. Tousis wants to build a $5 million grocery store and restaurant with gas pumps on the vacant site.

Tousis needs the RDA to agree to sell him the land to move forward with the city approval process. He's run into resistance from a group led by Alderman Jim Spangenberg, who opposes the gas pumps.

The meeting's first vote likely will be an effort by RDA members Pete Karas and Scott Terry to hold discussion of Tousis' option in open session. Two meetings ago the RDA voted 4-3 against discussing the proposal in open session. Robert Ledvina joined Karas and Terry in trying to prevent the closed session. John Crimmings, Cory Mason, David Lange and Spangenberg voted to close the meeting to the public.

It's unclear if the RDA will take action on Tousis' proposal Monday. If they vote to approve Tousis's option, the City Council will not consider the proposal at its meeting on Tuesday. Instead, it will be put off until the council's Jan. 5 meeting.

Spangenberg laid out his objections to Tousis's project (including objecting to Tousis supporters' tactics) in a commentary that appeared in The Journal Times on Thursday. In the commentary, Spangenberg said he supports a grocery store and sitdown restaurant (with a liquor license to serve beer and wine) and even suggested some wiggle room on the gas station. Instead of outright rejecting the idea, Spangenberg suggested he could support a well-designed gas station on the site, writing:
The gas station would need to be a new urban design. This means the gas station does not look like a gas station but fits in with the business district and neighborhood.
Many of Spangenberg's concerns, such as too much traffic at the intersection, are issues that would be discussed by the city's Plan Commission and Access Corridor Development Review committee. But Tousis's proposal has not reached that stage because the RDA needs to decide if it wants to sell the land for the project.

Tousis offered to buy the land for $250,000 with a forgivable mortgage of $50,000 for five years if he creates at least 24 jobs. It's unclear if the city will make a counter-offer or simply accept or reject the proposal. Monday's meeting should answer that question.

December 6, 2009

Answering and raising questions about American Tire and Recycling; Proposed Racine business to use tires to generate power

Our last story on American Tire and Recycling, a company planning to open in Racine next month, drew two interesting comments from people in the know:
I have had dealings with the CEO of American Tire & Recycling,Kerry Ecklund. He is also the owner of Keweenaw Scrap Tire & Metal. He means well, however, is looking for hand-outs. He knows how to dodge bullets, and manipulate the public relations machine. The cities of Racine and Niagara need to consult with the Michigan D.E.Q., Calumet (MI)Township, Houghton (MI) County. Ask about revolving loans, development block grants and loans. How many were paid back? Why did Kerry pack-up his shredder operation in MI and move to WI?
and
American Tire & Recycling doesn't seem to be an efficient operation,refering to the plan to ship tire parts to/from Niagara/Racine.Anyone in the recycling industry can tell yopu that the more you move products/by-products around,the more costs accrue.If all they plan to do is make T.D.F. (tire derived fuel), they'll not last very long.T.D.F. is a low-grade product that sells for $20 to $50 per ton. Real tire recyclers furthur refine tire shred to such products that command a premium on the recycled rubber market (crumb rubber,playground surfacing). As one who is heavily involved in the tire recycling industry, I think American Tire Recycling is a company looking to operate with other peoples money to benefit company shareholders. This has happened before.
We've done some background research on American Tire, and there's a shred of truth to the comments. Keary Ecklund, head of American Tire, is tied to a large scrap metal company in northern Michigan. (We actually reached Ecklund at Keweenaw Scrap Metal in Hancock, Mich.) His family also owns Ecklund Carriers, a national trucking company.

The interview with Ecklund went well. He talked openly about his company's plans for Racine and how it will tie into their operations in Niagara, which is about three hours north on the Wisconsin-Michigan border.

Ecklund said the plan is to setup a simple tire collection point on Memorial Drive in Racine. Truck drivers will collect used tired from a radius of 100 miles and bring them to Racine, where workers will cut the treads from the sidewalls and then put them on another truck, which will drive the cut tires to Niagara for recycling.

Ecklund said he's planning to hire about 90 employees to work two shifts. The employees will work four 10-hour days in a row and then get four days off. The jobs will be low-skill jobs at the site and truck drivers to collect materials. There will be no scrap material on site.

We discovered a few new specifics about the company, including how it makes business sense to collect tires in Racine and ship them all the way to Niagara for recycling. The reason: biomass fuel.

Ecklund said his company is recycling tires to sell to paper plants, which use the material to burn with biomass, mostly wood, to run their plants. The rubber helps the biomass burn more efficiently. Recycled tires burn consistently at 16,000 BTUs, while biomass burns at between 6,000 and 9,000 BTUs. Combining the two ingredients helps raise the temperature of the biomass and even out the temperature.

It's a good market for American Tire because several major paper plants are switching to biomass as a more reliable fuel than coal, which has fluctuated in price in recent years, Ecklund said. Biomass is also a renewable resource. Paper company harvest forests every 20 years, which is a lot quicker than coal is produced.

He added We Energies and other companies are also planning to build biomass plants in the coming years, which gives American Tire additional customers for its materials. (Read a 2008 story about his plans, which says he can get $50 a ton for tire-derived fuels.)

Ecklund said American Tire originally setup its recycling operation in northern Michigan, but had to shut down because it was drawing too much power from the region. "We were making lights flicker in people's homes," Ecklund said.

His company is planning to move into a former power plant in Niagara, which offers plenty of energy infrastructure to run the recycling business.

Ecklund said he learned about the terminal on Memorial Drive in Racine because his family has run a trucking company for many years. He said he knew every "nook and cranny" for trucking companies in the state.

"We're excited to get in there," Ecklund said.

What was interesting about the interview with Ecklund was the number of minor differences he shared with the information provided to city officials at last week's RDA meeting. RCEDC and city officials suggested the business was up and running, but it's not. Ecklund only received approval to move into its Niagara site last week.

Officials also suggested a similar operation to the one in Racine was running in the La Crosse area, but Ecklund said they had no other sites running in the state. If the Racine operation goes well, he said, they're looking at two other tire collection sites in Wisconsin.

Officials also made no mention of the use of recycled tires for power plants - they only said uses would include shredding tires for playground surfaces - and didn't tell the RDA about Ecklund's significant ties to scrap and recycling companies. While not critical information, it was very difficult to track down information about a company named "American Tire and Recycling" in Wisconsin. It was significantly easier to find information about Ecklund's scrap business.

While we seem to have an answer to the first commenter's question - Why did Kerry leave Michigan? - we haven't researched Ecklund's track record in other communities. It probably makes sense to look further into his companies before the city approves just under $40,000 in free rent for the operation.

That said, jobs are jobs. If American Tire is going to put 80-90 people to work in Racine, it's hard to blame officials for taking a leap-before-you-look approach to welcoming the business to the city.

December 2, 2009

American Tire and Recycling closer to delivering jobs to Racine

It's looking more and more like Mayor John Dickert is going to deliver his first new major employer to Racine.

American Tire and Recycling is close to a deal to move into 2301 S. Memorial Drive, where it will collect old tires, cut them apart and send the products to its processing plant in Niagara, Wis. (located on the Wisconsin-Michigan border).

The Racine operation will employ up to 88 people over three shifts, according to City Development Director Brian O'Connell. If approved by the City Council, operations would start in the first quarter of next year, he said.

The building on Memorial Drive is perfect for the operation. It will serve as a transfer point for old tires collected within a 100-mile radius. Trucks will carry the tires in, drop them off to run through a machine that will separate the side walls from the treads, and then another set of trucks will drive them to Niagara.

The company has a similar operation going in New London, Wis. that's having success, O'Connell said.

The Redevelopment Authority reviewed a proposed deal to use sewer revenue money to pay American Tire's lease for 18 months to help the company get established. The deal would cost $39,600, O'Connell said. It also includes a clause requiring American Tire to hire its employees form the city of Racine, which has the second highest unemployment rate in the state.

RDA member Pete Karas asked about the environmental impact of the business. O'Connell said it would be minimal, with no piles of tires or really any waste product left behind.

The RDA unanimously approved the deal for American Tire.

It was the second bit of good news for the company this week. On Tuesday night, the Niagara City Council voted to allow American Tire to setup its recycling operation at a former paper plant.

December 1, 2009

For the third time, city to take up option for West Racine grocery store, restaurant and gas station

Officials are expected to meet this week on a $5 million commercial development that will create jobs and bring a long-desired service to the city.

The proposal is supported by surrounding residents, fits the long-range business plan for the neighborhood and appears to have the support of the mayor and several City Council members. It now just needs city approval to allow the developer, who has a solid track record on construction projects, to proceed.

Seems like a no-brainer for a city that's only landed a handful of new commercial construction projects in the past year. But, no.

The project described above is Tom Tousis's proposal to build a grocery store, restaurant and gas station at the corner of Washington Avenue and West Boulevard in West Racine. The $5 million project is now before the city's Redevelopment Authority, which is negotiating an option with Tousis to buy the land. (The RDA, which was created by the city, is the owner of the property.)

The problem for Tousis is Alderman Jim Spangenberg, who represents a portion of West Racine. Spangenberg has made no secret about his opposition to Tousis's project, largely because it includes a gas station. Spangenberg is the lone City Council member on the RDA and has an influential voice in all West Racine discussions.

The key issue is whether the grocery store and sit-down restaurant in Tousis's proposal make the gas station acceptable. Tousis argues the gas station is an important component of the plan because it will draw people to the site (and to West Racine).

But opponents, many turned off by Tousis's aggressive approach, are focused on the gas station. Dick Hinsman, who owns a business next to the proposed site, offers a glimpse of this one-track mind in a letter to the editor in today's JT. Hinsman wrote:

Also, recently, the City of Racine had put together a committee of local business people and people from the neighborhood. The committee was referred to as a Neighborhood Work Group. This committee came up with some recommendations as to what should be built on the site. The findings were that a business such as a gas station and a tattoo parlor were unacceptable/undesirable uses. Preferred uses include a full service grocery, and a table service restaurant.

Let's keep West Racine as a special area. A gas station will not be a destination business, nor will it be a business that will compliment West Racine.

Lost in this email is that Tousis is proposing a grocery store and restaurant, as well as a gas station. But Tousis's proposal is stuck with entrenched beliefs and hurt feelings.

It's now going around that Tousis' team didn't fill out the proper paperwork when submitting its plans to the RDA. Tousis disagrees, but let's assume it's true. If the fate of a $5 million development - that's $1.5 million more than the much celebrated $3.5 million "Treasures" warehouse proposed for the Southside industrial park - hinged on paperwork, you'd think someone would go out of their way to help the developer get things straightened out.

Maybe that's happening here. But the RDA is going on its third month of discussing Tousis's request for an option, and this is far from the last step for the project. It still needs to pass the Plan Commission, Access Corridor Review (which Spangenberg sits on) and needs a liquor license from the Public Safety and Licensing Committee, plus full City Council approval.

If every step takes three meetings, it could take Tousis another year to get a shovel in the ground. It raises questions of whether Racine is developer friendly, and what could be done to streamline the approval process for new construction.

October 26, 2009

City rehabs Uptown building; Dickert: Artists are good for Uptown, jobs are better

City officials gave a tour last week of the Uptown building rehabbed by Racine's Redevelopment Authority.

The building at 1526 Washington Ave. was gutted and remodeled into usable space, though it's still lacking bathrooms, plumbing, electrical conduits and heating ducts. The idea was to convert the tattered 4,600-square-foot building into a blank canvas for someone to move into and design how they'd like.

The interior is impressive. The first and second stories feature huge street front windows and wide open spaces.


The building is on the market for $400,000, or $200,000 for the first or second floor. One buyer out of Chicago is interested in the space, though they need to sell their building first, which is no guarantee in the current market. The RDA bought the building in 2007 for $128,000.

The building cost about $604,000 to renovate and the project's total cost was about $800,000.

The city is now preparing to market the property. The hope is still to attract an artist or artists to the building as part of the "Create Uptown" district started by former Mayor Gary Becker.

Mayor John Dickert said Friday he was open to bringing in any type of business to Uptown, adding he was more interested in jobs than artists.

Here's a few more pictures from the tour:

City Development Director Brian O'Connell talks about the building.


Jody Karls looks out the window. He's standing next to John Crimmings, chair of the RDA.


It's all yours for $200,000.

October 8, 2009

City considering moratorium on development around potential commuter rail station


The city is shutting down development around its potential commuter rail train station until the state makes a final decision on KRM.

That was bad news Wednesday evening for Racine-based developer Brent Oglesby, who was hoping to build a residential and commercial development across from Racine's possible KRM station. He appeared before the city's Redevelopment Authority to request an option to buy RDA-owned on State Street. The response he heard from the RDA: We're not selling.

The authority, which is the legal owner of the land Oglesby was seeking, voted 4-2 against giving him the option he needed to pursue his development. The RDA then voted 4-2 to "receive and file" Oglesby's proposal, which essentially means it's dead.

Pete Karas and Scott Terry voted in support of Oglesby. John Crimmings, Jim Spangenberg, David Lange and Robert Ledvina voted against.

John Crimmings, chairman of the RDA, said the authority literally wasn't selling the land. It had no broker for the property, did not issue a request for proposal and had done no research in recent years on the land's value. Instead, the RDA planned to hold the property until KRM is sorted out, one way or another, on the state level.

Crimmings and others intimated they would also seek a 12-month moratorium on development around State Street's Racine Transit Center, which is the potential home for a commuter rail stop. It was actually motioned to vote on the moratorium Wednesday night, but Karas noted the idea wasn't on the meeting agenda. The RDA will likely take up the issue in November.

The moratorium was needed to prevent a flood of developers (like Oglesby) from trying to buy up land around the commuter rail station, Crimmings said.

Karas responded by asking if the city was really concerned a flood of developers would descend on Racine. The comment drew a laugh from the audience, but gained no traction for Oglesby's project.

The RDA's vote is the end of the road, at least for now, of Oglesby's $6.6 million project, which included a statue honoring Corinne Owens, Racine's legendary civil rights activist. While Oglesby's project is done, for now, Mayor John Dickert announced this week no matter what is built on State Street it will include a section honoring Owens.

October 7, 2009

No Option: City puts off decision on West Racine grocery store, gas station

The Redevelopment Authority met Wednesday in the City Council chambers.
About 75 people attended the meeting.

A proposed grocery store, gas station, restaurant and bank in West Racine remains in limbo after the Redevelopment Authority's meeting on Wednesday.

Project developer Tom Tousis had hoped to secure a 12-month option to buy the 1.5-acre site, located at West Boulevard and Washington Avenue, from the RDA, which owns the land. But the RDA only agreed Wednesday to direct city staff to negotiate with Tousis on an option to buy the land. Tousis will need to return to the RDA to get the option.

The option is a critical step because Tousis needs RDA support for his project to advance to the next round of city approvals. The City Council's Plan Commission and other committees cannot consider the $5 million proposal if Tousis does not have the right to purchase the property.

Wednesday's outcome was somewhat unexpected because Tousis and RDA officials both seemed surprised/confused by the project's status. Here's an explanation of what happened based on interviews and attending the meeting:

* Tousis submitted his project to the city on Sept. 11 and it was referred to the RDA for consideration.

* The RDA put the project on its October agenda as a public hearing with an initial recommendation to "receive and file" the proposal. Tousis was hoping to secure rights to buy the land so the project could advance to other city committees.

* On Tuesday (the day before the RDA meeting), the city notified Tousis that he needed to work with the RDA's real estate agent to establish terms of the land option, including price and length. This was news to Tousis, who didn't know the RDA wanted him to negotiate the option.

* On Wednesday, the RDA's meeting agenda changed the staff recommendation on Tousis' project from "receive and file" to "defer" to give Tousis time to negotiate the option.

* The RDA voted unanimously Wednesday to direct staff to negotiate the option with Tousis.

Tom Tousis speaks during Wednesday's RDA meeting.

Following Wednesday's meeting, Zak Williams, a spokesman for Tousis, said the RDA's action was another "roadblock" to Tousis' efforts to build in West Racine. He noted the city had Tousis' project nearly a month before the RDA meeting but never said Tousis needed to negotiate an option before Wednesday's meeting.

Williams said city officials, including Mayor John Dickert and City Development Director Brian O'Connell, were stalling on Tousis' project.

"The city staff does not want this proposal to move forward," Williams said, adding: "The mayor has been very aware of what Brian O'Connell has been doing with this project, and he's done nothing about it."

Dickert, who sat in on the RDA meeting, said afterward that the RDA's decision was a common sense vote. Tousis only asked the RDA to review his project, and that's what the RDA did, Dickert said. If Tousis wanted an option on the land, Dickert said, he should have brought an option for the RDA to consider.

In other words, since there was no option, the RDA had nothing to vote on.

RDA Chairman John Crimmings said as much during the meeting. "The problem I have is we don't have an option to consider," he said. "It's very difficult to grant an option when we don't have an option."

The outcome suggested one of three things occurred:

1. The city sprung the option requirement on Tousis at the last minute, possibly to delay a vote.
2. Tousis made a mistake and failed to work on the option prior to Wednesday's meeting.
3. Everything went as it should, and this is just part of the approval process.

One person who seemingly can't be blamed for the delay is Alderman Jim Spangenberg, who is opposed to Tousis' plans to build a gas station but said he was "not against" giving Tousis the option.

Spangenberg did say he opposed a lengthy option (18 months) on the property, in part because a handful of other developers received options and then did nothing with the site. He also said he wouldn't vote for an option without seeing information about the deal and more about Tousis' background and project.

One positive for Tousis out of Wednesday's meeting was the RDA held its public hearing on his project, which is a step forward in the approval process. A majority of the people who spoke Wednesday night backed Tousis' 25,000-square-foot project.

Alderman Greg Helding and Elaine Sutton-Ekes, both city Plan Commission members, both spoke in favor of granting Tousis the option. Both said they looked forward to reviewing the project in detail at their meetings.

A sketch of the gas station canopy designed to look like a train depot Tom Tousis
intends to build in West Racine.


Tousis himself spoke on the project Wednesday. He revealed a new canopy for the gas station that would be designed to resemble an old train station and would use motion sensors to light up at night only when customers were present. Tousis also said the project would reclaim stormwater on the project and use it for landscaping, would setup a neighborhood recycling center and may even compost leftover food to create a source for renewable energy.

Dick Hinsman, who owns a property adjacent to the vacant lot in the 3100 block of Washington Avenue, continued his strong opposition to the project. Hinsman spoke during the public comment period and said a gas station would bring too much traffic to the corner.

Robin Wilson, the owner of Wilson's Coffee and Tea in West Racine, said he supported the grocery store and restaurant, but said a gas station was "completely unacceptable."

A representative from the West Racine Business and Professional Association, said the organization met this week and supported Tousis' grocery store, restaurant and bank, but said the gas station did not fit with plans for West Racine. (Tousis attempted to attend the association's meeting Tuesday morning, but was asked to leave.)

Real estate agent Karen Sorenson speaks at Wednesday's RDA meeting.

The next step for the controversial project is unknown. Karen Sorenson, Tousis' Realtor on the project, said she would write-up an option on the land by Friday. She asked the RDA if they would consider a special meeting this month so Tousis wouldn't have to wait until November to appear again before the RDA. Crimmings was non-committal on the idea.

As a side note to the meeting, state Rep. Cory Mason didn't attend the meeting but did listen in through conference call. There was some disagreement over whether Mason could vote at the meeting. Assistant City Attorney Nicole Loop said City Attorney Rob Weber had cleared Mason to vote by phone if he participated in the meeting, which she said is consistent with state law. But during the actual meeting Crimmings said Mason wouldn't be allowed to vote.

Mason himself said Tuesday he was told he could vote by phone.

The issue proved irrelevant because no votes were close enough for Mason to make a difference, but could be worth watching at future meetings.

October 6, 2009

Redevelopment Authority has final say over purchase of West Racine development

A procedural note about Wednesday's Redevelopment Authority meeting ...

The seven-member RDA has final say over whether to give Tom Tousis an option to the develop the 1.5-acre lot at the corner of Washington Avenue and West Boulevard. Unlike City Council committees, which make recommendations to the full council, the RDA is a stand-alone entity because it is the legal owner of the land.

That means any developer who wants to build on authority-owned land needs approval from the RDA to proceed. In Tousis's case, he needs the RDA to grant him an option on the site before the City Council will consider his project. In other words, Wednesday's meeting is a critical vote for the controversial West Racine project and, in theory, the RDA could stop the proposal before its reviewed by the City Council.

One member of the RDA is elected. Alderman Jim Spangenberg represents the City Council on the authority. The other members are appointed by the mayor and confirmed by the council to five-year terms.

Members include: Spangenberg, Pete Karas, Scott Terry, David Lange, John Crimmings, Cory Mason and Robert Ledvina. The City Development department staffs the RDA.

The RDA used to have two aldermen. That requirement changed after Karas resigned his seat and the council voted to reduce the required number of aldermen on the RDA from two to one.

October 4, 2009

Showdown on West Racine grocery store, gas station set for Wednesday's RDA meeting

UPDATE 2: The ongoing saga about a 1.5-acre plot of land in West Racine continued this week with some odd behind the scenes moves before Wednesday's Redevelopment Authority meeting.

Based on the agenda for the meeting, we reported Sunday that city staff was recommending the authority "receive and file" Tom Tousis's $5 million proposal, which is typically government speak for throwing it in the garbage.

But then we received an email from City Development Director Brian O'Connell that said, in part:
City staff has not yet taken any position on the Tousis proposal. City Staff has requested information from Mr. Tousis; we will not be making a recommendation on his proposal until we have received and reviewed that information and the information that Mr. Tousis may present at the public hearing on Wednesday.

The Racine Post chose to interpret the “receive and file” recommendation on the agenda for the Redevelopment Authority meeting as a recommendation for denial.
Interestingly, the JT quoted O'Connell on Monday saying Tousis had not submitted needed paperwork for the RDA to consider his request for a 12-month option on the land.

Zak Williams, a spokesman for Tousis, contested this claim Monday. He said the city requested additional information and said Tousis could bring it to Wednesday's meeting.

The JT later dropped O'Connell's quotes from its story about Wednesday's RDA meeting without explanation.

So where do things stand?

Apparently, Tousis has the needed paperwork into the city, and the RDA (the legal owner of the property) may vote up or down on giving him a 12-month option on the land. But even that's unclear because the agenda lists a public hearing, but not a straight-up agenda item, on the project.

O'Connell told the JT the RDA may make a recommendation Wednesday, but he doesn't anticipate them doing so.

We're hearing odds are increasingly likely there will be a vote on Wednesday, but it's unclear if the RDA will grant the option and it could come down to a 4-3 vote either way.

Pete Karas and Scott Terry are reportedly solidly behind Tousis, and State Rep. Cory Mason is likely to support the project because Tousis agreed to use union labor to build the grocery store, gas station, restaurant and bank. Alderman Jim Spangenberg firmly opposes the project, which leaves RDA Chairman John Crimmings, David Lange and Robert Ledvina as the deciding votes.


UPDATE: City Development Director Brian O'Connell called Monday to say the city staff is not recommending that Tom Touisis' West Racine proposal be denied. He said, rather, that Wednesday 's meeting focusing on it by the Redevelopment Authority is a public hearing on the project and there is no staff recommendation. That's contrary to the RDA agenda posted on the city's website, but make up your own mind.

Original post:

City staff is recommending the city's Redevelopment Authority "receive and file" a proposal to build a grocery store, restaurant, bank and gas station in West Racine.

The recommendation, listed on the agenda for Wednesday's meeting, amounts to dumping the proposal without taking further action. You can see the agenda here.

Tom Tousis wants to build the roughly 25,000-square-foot, $5 million development on the southwest corner of Washington Avenue and West Boulevard. The plan received strong support during a neighborhood meeting on Sept. 30, but there's high-level opposition to the proposal.

Alderman Jim Spangenberg, who sits on the RDA and lives in West Racine, is fighting the project, and a West Racine work group is asking the RDA to adopt restrictions on the vacant lot that would discourage, if not ban, a gas station on the site. Opponents of the Tousis project argue it would be better to wait for the right development than force something that isn't a good fit.

Tousis is fighting back with an organized effort to build support for the development. He's committed to using local union labor to build the project and to preserve the farmer's market on the site.

Wednesday's RDA meeting is an important step for Tousis. He needs the RDA's support to move ahead, because the authority technically owns the 1.5 acres of land he wants to build on. Without the RDA's backing, he won't be able to proceed.

July 2, 2009

Community garden proposed for north side could work - and that's the problem

Wayne Clingman has a great idea for a large vacant lot on the city's near north side - and that's the problem.

Clingman (known on this site as "colt") wants to turn the site of the former Homeward Bound/Danish old folks home near Julian Thomas Elementary School into a huge community garden. He presented his plan this week to the city's Redevelopment Authority.

Clingman's vision is to divide the 2.3-acre property (click here for a map of the site) into plots and invite neighborhood residents to grow vegetables and flowers in the spaces. It wouldn't cost the city a dollar, he said, and he's already lining up support from group like Growing Power in Milwaukee and County Board Supervisor Jim Kaplan.

But the undoing of Clingman's plan may be its potential for success. The city has already invested $190,000 into the plot to acquire the property and tear down the former Homeward Bound, which was in disrepair. To make that money back, the city created a tax incremental finance district and intends to develop single-family housing on the land. Current plans call for 13 new houses, and the city has been working with an environmentally sensitive builder out of Milwaukee to plot out the property.

While the housing market is weak at the moment, particularly for new homes in high-crime areas, a couple of factors suggest development could occur in the future. First, the economy will come back and get people thinking about buying new homes. Second, Racine's KRM commuter rail station is within blocks of the site. If the train becomes a reality, the vacant lot could become an attractive buy for people looking to ride the train on a regular basis.

Given all of that, the city's biggest concern may be that Clingman's community garden is successful, said John Crimmings, chairman of the RDA. If the gardens take off it'll be harder for the city to sell the land for redevelopment. Opening the land - even if it goes undeveloped for five years - risks "taking away" a community asset when it comes time to build houses on the property.

"The more successful that garden is, the harder it is to sell it (the land)," Crimmings said. "The more successful he (Clingman) is, the worse it is for us."

Despite his concerns, Crimmings left the door open for Clingman to flesh out his proposal and bring back a plan for further consideration.

"I'm not debating at all that this is a wonderful idea," Crimmings told Clingman. "... It's a good thing, we support it, just not on this site."

And while Clingman has good intentions, his idea is underdeveloped. For example, he didn't have a plan for dividing up the plots and giving them out to residents. He also didn't have much to share on whether people actually want a community garden on the site.

RDA member Scott Terry asked Clingman if he'd asked anyone in the neighborhood if they wanted a community garden. Clingman said he planned to survey the neighborhood and find out.

Another problem is Clingman's relative inexperience. While he's had success working on film projects, he didn't have much to offer in terms of experience in running a community garden. Crimmings said that was a concern.

"Ideas are only as good as the people who run them," he said.

My impression from the meeting was Clingman has a good idea that needs to find a home. Community gardens have been successful in Racine and other cities, and there's a particularly strong movement now, with the down economy and a push toward healthy eating, to grow food locally. Clingman himself said part of the impetus for his his plan is that he grew up on a farm and wanted to bring that experience to an urban neighborhood.

Kaplan suggested the site could qualify for state or federal funds as farmland. Money is available to preserve farms, and smaller plots (like those available in cities) now qualify for the money.

But, ultimately, the city needs to make back the $190,000 it spent clearing the Homeward Bound site (which was a dangerous eyesore in the neighborhood) while thinking about its long-term housing plans and needs. There's not many large chunks of property in Racine to develop, so the few the city does have needs to be converted into tax base.

RDA member David Lange suggested a compromise. The city had talked about a "green" development on the land, and perhaps any new housing on the land could include a community garden to help the neighborhood.

More likely Clingman will have to find a new location for his community garden plans.

June 4, 2009

Committee approves placing sculpture in Uptown

Untitled, by Nic Noblique

The city's Redevelopment Authority approved placing a 9 1/2-foot tall sculpture at a new pocket park being built at 1247 Washington Ave.

Artist Nic Noblique donated the sculpture to the city after he nearly moved to Uptown as part of the city's Artist Relocation Program. Noblique and his family was displaced by Hurricane Ike and briefly moved to Racine. He intended to buy one of the Uptown buildings, but the deal fell through and Noblique moved back to Texas.

The abstract steel sculpture, untitled, is a flowing bright red design that will sit on a 2-foot-8-inch pedestal in the 800-square-foot park. Members of the Uptown Business Improvement District approved the sculpture, said City Development Director Brian O'Connell.

Members of the RDA briefly guffawed at the artwork, but unanimously approved placing it in the park at the corner of Washington Avenue and 13th Street.

The committee asked about potential vandalism to the sculpture. O'Connell said city staff believed the public would respect the artwork. He added staff acquired some of the red paint to cover up any graffitti on the sculpture.

The city acquired the triangle-shaped piece of land from the county. It was a tax delinquent property, O'Connell said.

Along with the sculpture, the city will do some minimal landscaping in the park, including planting trees, he said.

Contractor Vassh and Sons Excavating Inc., of Franksville, was the low-bidder on the project at $3,730. (See the plan here.)


A plaque with Noblique's name will be displayed by the sculpture, O'Connell said.



Dollar store gets a second vote of confidence from city committee

The City Council will get another chance to approve a new dollar store on Washington Avenue.

The city’s Redevelopment Authority voted unanimously Wednesday night to re-recommend support for a roughly 14,000-square-foot development anchored by Family Dollar at 1130 Washington Ave. (See our previous story for more details on the development.)

The council had sent the proposal back to the RDA after Alderman Jeff Coe raised questions about the development. The site, the former home of Schaefer Pontiac, sits in Coe’s district.

During its regularly scheduled Wednesday meeting, the RDA initially seemed to favor starting the development process over. Coe, Alderman Michael Shields and the owner of Puma Cycles, located across the street from the development site, all were against the proposed dollar store.

But a strong argument from Kristin Niemiec, of the Racine County Economic Development Council, and Linea Anthony, of the Uptown Business Improvement District, seemed to reinvigorate support for the dollar store development proposed by Abdo Markethouse of Minneapolis.

Niemiec argued the city had issued two requests for proposals for 1130 Washington Ave. already. Sending out a third RFP could turn away Abdo and leave the city with fewer options for the site, she said. “My hunch is we’re going to lose them,” Niemiec said.

She also noted this would be the first new construction in the Uptown area in several years, and the developer is using their own money to pay for the new construction. The development is expected to be assessed at over $1 million.

“Macy’s isn’t coming,” she said. “I hate to break it to the Uptown folk, but it’s not coming.”

“How many times are we going to be able to do this?” she asked. “… this ideal development that doesn’t take a subsidy and everyone wants doesn’t exist. There’s always going to be someone who’s unhappy.”

Niemiec, whose frustration showed through, poked fun at herself. She called herself the “crazy RCEDC woman trying to railroad everything” through the council.

Railroading or not, the RDA listened. The breakthrough compromise came when the RDA agreed to talk to Abdo Markethouse about including groceries or a deli inside the Family Dollar store to serve as a resource for the surrounding neighborhood.

Coe said he would support the development if it included the grocery component. Shields raised questions about how, exactly, the city would convince or require the developer to add those elements.

City Development Director Brian O’Connell said the project had a lengthy review process that would give city officials opportunities to influence the design. But he also noted the Common Council’s vote in two weeks, technically to give Abdo Markethouse a 90-day option on buying the land at 1130 Washington Ave. for $70,000, would lock in the site’s general use. For example, a city committee couldn’t force the developer to abandon the dollar store.

Underlying approval of the development was the impact new construction could have on the entire Uptown area.

Anthony noted the $1 million+ development would lie within the Uptown BID and generate money for the group, which works to support Uptown businesses. The development also lies within the Uptown tax incremental finance district that’s being used to improve buildings in Uptown.

“Trader Joe’s is not coming here,” Anthony said. “We can’t even get a Starbuck’s in Downtown Racine. This is a lot of tax revenue, a lot of BID money that can be used for something down the road.”

Alderman Jim Spangenberg, who sits on the RDA, also noted the city has to be careful about how it works with developers. It put out RFPs and got responses. If it’s constantly turning people away, it could give the city a reputation as being hard to work with.

In the case of 1130 Washington Ave., getting too picky could result in an empty lot for the “next 20 years,” Spangenberg said.

Coe hinted at a possible competing use for the site. He said the developer interested in building a gas station had talked about adding space for a small grocery store and working with neighboring businesses to help them expand.

The RDA approved a gas station for the site the first time around, but had to seek new proposals after the first deal fell through. Shields asked what changed from the first time when the RDA voted for a gas station and the second time it voted for the dollar store.

John Crimmings, chairman of the RDA, said input from Uptown business owners convinced the committee to approve a retail development over a gas station.

Puma, who seemed to oppose the dollar store, said he was hoping the city would work toward a development that would tie together Uptown with Downtown. He didn’t think the dollar store would serve that role.

“We have a golden opportunity,” Puma said. “… I’d hate to see it lost on a rush to judgment.”

May 21, 2009

Dollar store proposal on Washington Ave. sent back to committee

Proposed Family Dollar at 1130 Washington Ave.

The Common Council voted unanimously Tuesday send a proposal for a dollar store at 1130 Washington Ave. back to the Redevelopment Authority for further review.

The RDA had voted to grant Minneapolis-based developer Abdo Markethouse a 90-day option to buy the land near Tino's for $70,000. The developer wants to build a 9,180 square-foot Family Dollar with 4,900 square-feet of additional retail space. (Read the proposal here.)

But the plan failed to pass the full Common Council. Alderman Jeff Coe motioned to send the proposal back to the RDA, which will reconsider the development at its June 3 meeting. The RDA voted 5-0 at its May meeting to grant Abdo Markethouse an option on the land.

Jim Puma, the owner of Puma's Custom Cycles Inc., which is across the street from the proposed development site at 1129 Washington Ave., said he opposes the dollar store.

"A better choice can be made to utilize a great piece of land for the future of midtown," said Puma, referring to the area just north of Uptown. "This a great opportunity. It shouldn't be wasted on a strip mall."

The use of 1130 Washington Ave. is an early test for new Mayor John Dickert. In an interview during the campaign, Dickert said one of the strengths he'd bring to the job was his understanding of real estate. He criticized city officials for supporting developments that may not have been in the city's best interests.

“The biggest problem we had is the former mayor didn’t understand real estate,” Dickert said in April. “Just because a developer comes in doesn’t mean it’s a good thing.”

Puma said the city shouldn't be in any rush to use the vacant land in the 1100 block of Washington Ave, which is the site of the former Schaefer Pontiac. The Schaefer family donated the land, five lots in all, to the city.

The parcel could be a unifying site between Downtown and Uptown, if used correctly, Puma said.

"It doesn't cost them (city officials) a dime to get the right people in," he said. "They can wait. Time is on their side."

The Family Dollar proposal is the third time the RDA has given a developer permission to buy the land. Two gas stations proposed for the site, both by local developers, fell through before they settled on Abdo Markethouse's plan.

Notebook Dump: Leftover notes for this story

Puma said business was slow for the American V-Twin motorcycles he sells. "The economy is affecting us all," he said.

One pitch for anyone interested in motorcycles: They're good for the environment, Puma said. They use fewer materials than cars and get high gas mileage. The high-performance V-Twin gets 35 miles-per-gallon, while some scooters Puma sells get up to 100 mpg.

"Any motorcycle is environmentally sound," Puma said. "Plus, they're a whole lot of fun."