MONROE — An affordable senior housing project is one step closer in Monroe. The Common Council voted unanimously to approve $600,000 in funds toward the proposed $8.5 million project, as well as the option for the developer to purchase four acres owned by the city.
At its meeting Nov. 18, the council heard from Joe Marone, vice president of operations for Pioneer Property Management, Inc. out of Platteville, who presented the proposal for a three-story, 47-unit property for ages 55 and older. The units would be apartment-style one- and two-bedrooms for independent senior living.
“Affordable housing, especially senior housing, is near and dear to my heart,” said Pioneer president Brian Fritz later, calling it “enjoyable and impactful.”
“I think it’s the biggest need of housing that’s out there,” he said.
Fritz said that about 90 to 95% of his company’s portfolio is affordable housing, and that about 60% of that portion is for seniors.
The proposed building site is located in the southwest corner of a 100-acre parcel of land that the city owns behind Walmart.
It was not specified where the $600,000 in city funding would come from, but, said city attorney Dan Bartholf, the city has two years to figure that out; their promised portion comes due after the property is built and a date of occupancy permit is granted.
As to the option to purchase those four acres of land, Bartholf said that is something the developer is paying $100 to secure, meaning that the city can’t sell it to anyone else until Oct. 31, 2020, unless the developer backs out. If and when Pioneer is ready to buy the land, they will pay the purchase price of $80,000.
That potential purchase is dependent on whether Pioneer receives Wisconsin Housing and Economic Development Authority tax credits. The deadline to apply is Dec. 6, and awards can take anywhere from 90 to 120 days after the application is submitted.
Awards depend on how high an application scores in multiple areas. Factors that can positively influence a property’s score include obtaining city support, having a location near amenities and being in a place that hasn’t seen a lot of economic development.
Fritz explained that 20% of WHEDA tax credits are set aside for rural projects, like this one in Monroe, and the application will be more competitive there than in the general pool where it would need to compete against Madison and Milwaukee proposals.
He said they should find out around April 15 if their application is successful; their goal is to break ground in late fall 2020 or early spring 2021.
Besides bringing a business into the city that would be a taxpayer, Marone also said the property would “churn housing inventory”; as seniors moved into apartments, those houses would then go on the market.
Fritz first began discussing the project with former city administrator Phil Rath and former assistant city administrator Sam Liebert last year, and though senior housing has struggled to gain ground in Monroe in the past, Fritz and Marone are optimistic.
“I feel like we have put together a good plan with tremendous help from the city,” said Fritz. He estimated that he has a success rate of about 70% from applications to funding.
Last year, Marone said, there were 54 applicants for WHEDA throughout the state and 26 were awarded tax credits.
“I hope everybody is as excited about it as I am,” said Alder Richard Thoman. “We need this.”
Council president Brooke Bauman abstained from the vote because of a family tie, but the measure otherwise passed unanimously. Alder Michael Boyce was absent.