Tycore takes over development
By Robert Cloud
Waupaca Common Council approved a development agreement for the construction of 32 single-family homes and 124 apartment units that will add nearly $28 million to the city’s total property values.
The council approved the agreement with Tycore Built LLC at its Feb. 6 meeting.
In a memo to council members and the mayor, City Administrator Aaron Jenson noted the city had released Hoffman Development Group from a December 2022 development agreement because Hoffman had been unable to secure financing in time for their scheduled commitments.
Tycore’s residential development is planned for a large tract of vacant land located south of Royalton Street/State Highway 54 and north of Godfrey Drive between the State Highway 22 bypass and Industrial Drive.
“If Tycore is successful in Phase 1, they will have the first option to secure land for future phases,” Jenson said. “Success in Phase 1 will be measured by completion of their commitments tied to public infrastructure and hitting a mark of $10 million of value added by Jan. 1, 2026.”
Tycore plans to develop approximately 358 housing units totaling $69 million in value over 10 years.
Jenson said he and Jarod Rachu, the city’s community and economic development director, visited the village of Howard, where Tycore is based, and the city of Oconto Falls. They saw Tycore’s projects first-hand and spoke with municipal administrators, who described their experience working with Tycore as positive.
Workforce housing
Wade Micoley, owner of Tycore Built, described his plans for Waupaca as “workforce housing development.” His goal is to develop housing options “so that employers can hire more people.”
He cited the Housing Needs Assessment of Bowen National Research, which found that less than 15% of existing residential units were built since 2000 and only 2% were built in the last 10 years.
“The biggest demand is in workforce housing,” Micoley said. “We’re not talking about McMansion-type houses. These are houses that everyone can purchase and buy.”
When selling a house, Tycore will bring a potential buyer into a model home, show them various lot sizes, designs and floor plans, interior and exterior colors and materials – such as siding, roofing, flooring and cabinetry. They then put together a package and price.
“It’s customizable, but it’s not custom,” Micoley said.
Home prices can range from under $250,000 for 1.065 square feet with two bedrooms, two baths and a two-stall garage, to nearly $400,000 for 1,915 square feet with three bedrooms, 2.5 baths and a three-stall garage.
The types of homes that Tycore builds will be based on what they find actually selling after the project is launched.
He said Tycore will begin building six homes, one of which will be the model. The other houses will be for immediate turn-key sale.
“We’re moving to break ground in July,” Micoley told the council.
Project financing
Tycore is working with the city on a pay-go basis.
The company pays for infrastructure up front, then is compensated by the city based on the additional tax revenues collected through the existing tax incremental financing district that the city already created for that area.
Under a TIF District, the city collects all the new tax revenues generated by new development, including revenues that would go to other taxing entities, such as the school district and the county. These new revenues pay the costs of development.
Tycore will receive 96% of the revenues generated by the TIF District.
The city’s financial advisor, Adam Ruechel with R.W. Baird & Co., said the developer’s total outlay for the project is projected at $6.76 million.