Harbor District affordable apartment development seeks $2 million in city funds

An affordable apartment development planned for Milwaukee's Harbor District would receive more than $2 million in city funding under a new proposal.

Kenosha-based Bear Development LLC plans to build the 140-unit apartment community, which includes 3,700 square feet of street-level commercial space, at 100 E. National Ave.

That $54.6 million project in 2023 received federal affordable housing tax credits.

Developers that receive tax credits must generally provide at least 85% of a building's apartments at below-market rents to people earning no higher than 80% of the local median income for 30 years.

The tax credits are sold to raise cash, with the developers then obtaining bank loans and other cash sources to complete their financing packages.

A new plan calls for a tax incremental financing district at the construction site. It would use property tax revenue generated by the apartment development to pay $2.17 million of its costs.

That proposal is to be reviewed by the city Redevelopment Authority board at its May 16 meeting. It also would need Common Council review.

If approved, the project's construction is to start by Aug. 31 and be substantially completed by May 2026.

Bear Development has started construction on another Harbor District affordable apartment development − one of Milwaukee's largest such projects.

The $197 million Filer & Stowell Lofts will create 576 apartments within eight five-story buildings at 123 and 147 E. Becher St. Bear's project financing includes affordable housing tax credits.

That Harbor District site was once home to machinery manufacturer Filer & Stowell Co. Those industrial buildings, later used for storage, were deconstructed to make way for the new project.

City funds totaling $9.2 million will be given to the firm over 17 years through annual payments from the new development’s property tax revenue. The Common Council and Mayor Cavalier Johnson approved that tax incremental financing district in September.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram , X and Facebook .

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This article originally appeared on Milwaukee Journal Sentinel: Harbor District affordable apartment development seeks $2 million in city funds