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.

Turner splits with Dickert over State Street development

Update: State Rep. Bob Turner is taking issue with our initial story about the proposed State Street development. Turner said Tuesday morning he strongly supports honoring Corinne Owens but he also strong supports Brent Oglesby's project on State Street.

The Insider News is scathing...

"I'm in full support of the Owens project," Turner said.

Oglesby wants to build a $6.6 million mixed-use development with market-rate (ie. not subsidized) condos and commercial space at State and Silver streets.

Turner took issue with the suggestion that he supported honoring Owens, but didn't necessarily support Oglesby's project. He said he hasn't met with the mayor and disagreed with Dickert's stance to hold off on development around the potential site of the KRM train station.

Alfonso Gardner, a long-time community activist who fights for jobs, said Oglesby's project is a critical development for Racine's inner city. He was dismayed to hear Mayor Dickert's stance on the project.

"Why is the city and the mayor stopping development in an area that needs work?" Gardner said.

He added: "The mayor is going to wait six years for us to have development in the inner city."

Oglesby is appearing before the Redevelopment Authority on Wednesday in hopes of securing an option to buy land for the mixed-use project. It's unlikely the RDA will grant Oglesbly the option.

Original post ...

There is no State Street project yet, despite wrangling by two potential developers over a two-acre parcel adjacent to the Racine Transit Center, but Mayor John Dickert and State Rep. Bob Turner announced today that -- when there is, whatever it is -- it will memorialize Corinne Owens.

But the when, according to Dickert, now hinges on commuter rail.

“Corinne Owens is a part of Racine’s history and she will be honored for her efforts,” Mayor Dickert said. “While there are no current plans for developing the site by the city, any future project will include a tribute to Ms. Owens.”

“Corinne Owens has been a leader and a mentor for African Americans throughout the greater Racine community for decades,” said Turner. “She is a champion for civil rights and a symbol of strength and perseverance.”

In recent months, two developers -- first, Damon Dorsey of Milwaukee and then Brent Oglesby of Racine -- requested access to the site to build Corinne Owens Square. Dorsey offered a mixed-use project with 25 apartments, 14 townhouses and 3,000 sq. ft. of commercial space. Oglesby tried unsuccessfully to take over Dorsey's option in September -- he lost a 5-2 vote by the Redevelopment Authority. A final decision on whether to grant him an option on the site was expected this month.

But the mayor's office said today the city has decided to hold on to all city-owned land around the train station until a decision has been made on commuter rail.

“I have known Corinne Owens for many years and have always been impressed by her unwavering commitment to justice. Her fight for civil rights and equality has left an indelible mark on Racine’s history,” said Dickert. “She is most deserving of a lasting memorial in our city for all of her outstanding contributions on behalf of civil rights since she became a citizen of Racine in the early 1950’s.”

Owens, honored by Racine County Democrats in March with the Phyllis Dresen Spirit of Democracy Award, rose from a janitor's position, when she was refused a teaching job because of her race, to become chair of the Gateway Technical College Board, president of the NAACP, and a leader in the effort to pass the Fair Housing Act

West Racine thwarts low-income housing project

The developer of a proposed $7 million low-income housing project appeared at a key
meeting Monday by speaker phone. City staff pointed the above microphone at
the speaker to amplify the developer's voice. The commission rejected the proposal.

UPDATE, Feb. 3: With no debate, the City Council voted 14-0 to accept yesterday's Planning Commission's recommendation, formally killing what Alderman Greg Helding called "the infamous West Racine project." In the public comment section of the council meeting, five citizens spoke against the project, and one presented another 200 signatures on a petition opposing it.

Original post:

The Plan Commission, at the urging of a grassroots neighborhood movement, knocked out a proposed $7 million affordable housing development proposed for West Racine.

The commission voted unanimously Monday afternoon to deny the 55-unit apartment complex, which included commercial development.

The North Carolina-based developer did little to help its case at Monday’s meeting when it failed to send a representative to the meeting. An employee chimed in on a conference call, but dodged a poignant question claiming only another employee could answer it. Not exactly helping out concerns that you’ll be absentee landlords, folks.

The proposal moves ahead to the City Council, but is likely DOA. Chalk one up for participatory democracy. Dozens of opponents packed a public hearing last week to oppose the project. They turned in a petition with over 200 names on it objecting to the low-income apartments, and swayed a commission that appeared to be leaning in favor of the proposal.

Not that this is good news for the city. The vote puts developers and planners back to square one on a piece of (supposedly) prime real estate in one of the city’s most prosperous neighborhoods. It also means a loss of about $150,000 in property taxes, which could go to paying down the $2 million in debt needed to demolish buildings for redevelopment.

Here’s a recap of the meeting:

4:04 p.m.
City Council President David Maack calls the meeting to order. It’s his last Plan Commission meeting. He’ll hand over the gavel to Tom Friedel after Tuesday night’s City Council meeting. Maack reminds the crowd of about 30 there’s no comment during the meeting. Roll Call: Four members are here, but no Judley Wyant.

4:05 p.m.

Matt Sadowski, of the city planning department, is trying to get the developer on speaker phone … and there she is. It’s an odd sight. One of the City Council microphones is pointed down at a speaker to amplify the developer’s voice. I think the company knows this is a lost cause.

4:07 p.m.

Alderman Greg Helding asks for city staff’s recommendation. Sawdoski reads it off … staff recommends approval. So that sets up the showdown: the city’s development professionals vs. a riled up group of West Racine residents.

Aldermen Aron Wisneski, Sandy Weidner, Bob Anderson, Robert Mozol and Jim Spangenberg are in attendance. So is County Supervisor Van Wangaard.

4:11 p.m.

Helding moves to deny the project’s conditional-use permit (the commission is actually voting on giving the developer a permit to build on the land). Crickets. No one seconds the motion.

4:11 p.m.

Plan Commission member Brent Oglesby has some questions for the developer. Oglesby was for the proposal at the last meeting. (Wyant walks in.)

Oglesby asks the developer to prove they can’t build a smaller development and still make money. He points out they’re not putting in any of their own cash, because they’re using state tax credits to fund the project.

The developer, Heather Hammond, hems and haws about the numbers and then says she wishes “Jim” was available, because he could explain it. But Jim’s not here, and the question goes unanswered.

Oglesby then wonders if the developer actually has the money they say they have. Here’s the deal: the state tax credits this year are worth a lot less than tax credits from previous years. Why? Because everyone is losing so much money there’s no need to invest in credits that are essentially a tax write-off. Essentially, real losses mean there’s no need for fake losses.

The developer says they have a national network of investors who will cover the project’s cost. Oglesby openly shakes his head in disbelief, which is funny because the developer can’t see him.

4:15 p.m.

Helding again moves to deny the request. He wants to say why, but he needs a second. Oglesby seconds, recluctantly.

Helding says the development is too dense and there’s not enough parking. He says parking is an issue, because West Racine may fill up one day and need a lot of parking. (It’ll be interesting to see how important parking is if a 55-unit condo or senior housing development is proposed for the same site.)

Helding adds there’s already too much rental housing in the city, and points out that residents seem pretty strongly opposed to this.

“We have these public hearings for a reason … they can’t just be symbolic,” he says.

4:17 p.m.

Commission member Elaine Ekes-Sutton is worried the development is too dense. She says the idea is good, there’s just too many apartments. She’ll vote no.

4:18 p.m.

Oglesby says he’ll vote no. That’s a change from last week. He encourages the developer to resubmit a smaller plan, saying the state may give out two or three rounds of WHEDA tax credits this year. “I would not take this as a death shot,” he said.

4:19 p.m.

Wyant asks: Is this the best the city can do, or will something better come along? He thinks something better will come along.

4:20 p.m.

It’s unanimous. The commission votes against the conditional-use permit. The City Council could overturn the commission’s decision Tuesday night, but it’s probably won’t. The project may not get a single vote.

4:21 p.m.

That’s it. We’re adjourned. You have to wonder if this project fares better if Mayor Becker was still around. I suspect he backed this project and wanted to get things moving in West Racine. After all, a vacant lot with $2+ million in debt isn’t exactly a help to the city budget. (It’s also worth noting high-quality low-income housing is needed in the city. There are thousands of hard-working families in the city who make between $23,000 and $43,000 a year who could use a decent place to raise children or just come home to.)

But Becker is gone, no one was willing to standup for the project, and now it’s kaput.