In 2015 the City of Cedarburg, Wisconsin sought to encourage redevelopment of a key historic downtown site following the closure of the St. Borgia Catholic School.
City officials engaged Ehlers for economic redevelopment services. Cedarburg desired development given the prominence of St. Borgia’s site in the downtown area. Architectural design requirements and a limit on height and density necessitated tax increment financing to make the project economically feasible for the developer. Ehlers advised the City with creation of a Tax Increment District. In addition, we evaluated the developer’s request for TIF assistance to determine the need for and level of public investment so the project could generate a reasonable return on investment. The evaluation was an important factor in facilitating approvals for the project, given considerable public scrutiny and its concern that TIF assistance was unnecessary. Ehlers further collaborated with the City’s legal counsel and staff to accurately coordinate the financial aspects of the development agreement with the Tax Increment District’s Project Plan.
Arrabelle Luxury Apartments open in early Summer 2019 and effectively met the City’s redevelopment objectives for the site . The complex includes 60 upscale apartment homes, nine townhomes, a fitness center and a clubhouse. With a projected incremental valuation of approximately $9 million, Cedarburg expects to recover its pay-as-you-go investment over a 13-year period. Subsequent to recovery, increased tax revenue will benefit all City taxpayers.