School Board Says No to Oakland Avenue Development Special Tax District

The Shorewood School Board voted 3-2 on Tuesday against approving the special tax district aimed to help fund a .

Based on that vote, Business Manager Mark Boehlke will now have to vote "no" on behalf of the School Board when the Joint Review Board considers whether to add spending authority for tax district No. 1 and create tax district No. 4. That meeting is June 23.

School Board member Colin Plese cited a lack of information for his vote against the tax district.

"I'm skeptical ... I'll be voting no tonight because I simply don't have enough information," Plese said.

The village said it plans to offer $7.4 million in support of Milwaukee developer Mandel Group and its $32 million, six-story development. About $4.6 million of the village's support will come through a grant, which the village plans to recoup through tax revenue generated through tax district No. 4. The project includes 84 apartments and a new home for the Shorewood Walgreens.

The Joint Review Board includes one member from each taxing district including the village, school district, Milwaukee Area Technical College, Whitefish Bay School District and Milwaukee County, so Boehlke’s vote will not stall the Mandel Group project on its own.

Boehlke and School Board President Paul Zovic said they believe the development could help drive up the district's declining resident enrollment because it includes some three-bedroom apartments.

"With the Cornerstone project, which was completed last year, we did get a couple students ... (Cornerstone) had even fewer three-bedroom units," Boehlke said.

School Board member Michael Mishlove said he doesn't see this development as a good thing for the school district and was concerned about the fact that tax revenue generated by the special taxing district is reinvested back into the district.

"It means property taxes for residents aren't likely to see any relief because (the school district is) missing out on revenue," Mishlove said.

However, Boehlke said the project wouldn't increase the district's mill rate.

A TIF district is a mechanism used by communities to spur development. When a district is created, a municipality borrows money to pay for various public improvements related to development within the district. Once the development is built, the additional property taxes generated within the district are used to pay off that debt.