New London continues discussion on riverfront development
By Robert Cloud
Development of the 6-acre riverfront project will occur in two phases, rather than all at once.
The first phase will include the three-story library building with two floors of senior housing, plus two units of affordable housing.
The second phase will be market rate housing.
Library Director Ann Hunt described the project’s funding as having “four legs,” during a Sept. 24 meeting of New London’s Economic Development Committee.
The first leg is the library’s target of raising $3.5 million.
The second is the senior affordable housing tax credits through the Wisconsin Housing and Economic Development Authority.
A private developer, Horizon Development, would own and operate the senior housing on the two upper floors.
The credits are needed for Horizon to proceed.
The city has also established a tax incremental financing district to fund the project.
By using a TIFD, property tax revenues within the district could be allocated toward the project.
The fourth leg is a private developer financing the construction of market rate housing.
Ald. Fred Zaug said he was concerned the city may have problems finding a developer for the market rate housing.
“We need all four legs going or the whole thing fails,” Zaug said.
City Administrator Lou Leone said the city has “a plan in place to apply for two grants that will bring in approximately $800,000. There is a third grant option that we are working on that will bring in an additional $400,000.”
Leone said New London property owners should not see a tax increase to cover this project.
“It is possible we may have covered the gap without using funds raised in property taxes,” Leone said.
During discussion of the project, committee member David Asman said the city should take a more active role in communicating with the public.
He suggested public information sessions.