Skip to main content
You are the owner of this article.
You have permission to edit this article.
City extends incentives package to company redeveloping Horlick complex

City extends incentives package to company redeveloping Horlick complex

  • 0
Horlick Malted Milk complex

Pictured above is the exterior of 2200 Northwestern Ave.

RACINE — The City Council voted unanimously on April 19 to extend a developer’s incentive package to J. Jeffers & Company that will aid with the construction of new market rate apartments on the grounds of the Historic Horlick District.

J. Jeffers & Company have proposed a $37 million project that will construct two new apartment complexes with 160 market rate apartments.

Racine Works

In addition to increasing the value of what was abandoned property, J. Jeffers & Company will abide by the Racine Works Program required of developers with incentive agreements with the city.

RWP aims to increase employment for Racine residents who are either underemployed or unemployed.

Developer incentives

The city is offering J. Jeffers & Company three development incentives: a utility grant, a loan and a developer-funded TID (tax increment district).

The $500,000 utility grant for infrastructure improvements on the site will come from the storm water utility and the sanitary sewer surcharge.

Secondly, the city will borrow $4 million from the Wisconsin Board of Commissioners of Public Lands, which the developer will pay back within four years at an interest rate of 3.2% per year.

This is similar to the development deal with The Main Attraction LLC, which is converting the abandoned Zahn’s Department Store into a chic, boutique hotel on Monument Square.

Lastly, the city will create a developer-funded TID with a maximum total incentive up to $12 million.

How does this work?

The city is not giving the developer $12 million.

The TID earns money in the following way: the city sets a base value when the TID is created. As the property value increases due to the development, the difference between the base value and increased value will be set aside.

Every TID is different. In this case, up to $12 million from the TID will be returned to the developer to help fund the project.

The rest of the development costs will be financed by the developer.

Shannon Powell, the city’s director of communications and chief of staff for the mayor’ office, explained because J. Jeffers is creating something of value; that is, increasing the value of the property. As such, the city will permit him to keep up to $12 million of that increased value.


Get local news delivered to your inbox!

* I understand and agree that registration on or use of this site constitutes agreement to its user agreement and privacy policy.

Related to this story

Most Popular

Those who are receiving unemployment benefits are not currently required to prove they are actively looking for employment as they normally are in Wisconsin, which some suspect adds to the hiring issues many southeast Wisconsin employers are reporting.

Republicans are moving to reinstate the requirement.

It is still being debated how much of an impact the requirement is having on employers' struggles to fill openings; the worker shortage is so new, there isn't really any data on reasons why there are so many help wanted signs and how much of an impact a single Department of Workforce Development rule has.

With a goal of getting at least 75% of city residents vaccinated against the COVID-19 virus, the city is looking to bring in professional outreach assistance to increase vaccination rates.

The Finance and Personnel Committee voted in favor of recommending the city skip the formal bidding process and enter into an agreement with Kane Communications to facilitate community engagement on the COVID vaccine.

The services agreement for $230,000 is to be reimbursed by the Federal Emergency Management Agency.

Get up-to-the-minute news sent straight to your device.


News Alert

Breaking News