Fox Run Would Have New Apartments, Clinic, Bank, More: Plans

WAUKESHA, WI — Officials in Waukesha will get the chance to weigh a new site plan for the Fox Run Shopping Center, the likes of which is the subject of a new multi-million-dollar redevelopment.

According to city plan commission documents, the shopping center is proposed to be redeveloped with a medical clinic, bank, multi-family residential buildings, and retail building. City officials on the Waukesha Plan Commission will review plans at 6:30 p.m. on Feb. 26 at City Hall.

The existing Chase Bank will remain, but all other buildings on the 13.42-acre site will be razed and replaced with the new development.

Redevelopment of the site is proposed to include the following land use types and sizes:

Multi-Family Residential (Low-Rise) – 72 units
Medical Clinic – 31,000 square feet
Drive-in Bank – 2 drive-through lanes
Pharmacy/Drugstore w/Drive-Through Window – 15,000 square feet
Chase Bank (existing bank to remain) – 3 drive-through lanes

Waukesha City officials say VJS Development Group and Somerstone are proposing a redevelopment project that includes a mix of medical/office, multi-family residential, and commercial uses at the old Fox Run shopping center.

The 13.42 acre site has seen decline over the past 10 years with numerous vacancies including the entire north multi-tenant building and the restaurant space formerly occupied by Denny's, according to city officials say.

Redevelopment of the site isn't going to be cheap, and the developers asked the city to set up a Tax Incremental Financing district. The Plan Commission approved moving forward with a TIF District in late January.

Without the TIF district, developers said the project wouldn't be feasible due to the removal of buildings and parking lots, environmental cleanup, and utility work.

"Due to the extraordinary costs related to site preparation, the developer is requesting an estimated $3.7 million grant payment as tax increment is generated from the project (PAYGO). The City Contribution shall vary pro-rata depending on the completed value and date of completion. For example, if the increment value were to exceed the estimated $32,340,379, the PAYGO amount could increase or if the value ends up below that amount the PAYGO would decrease," meeting documents stated

Hey, What's A TIF District?

A TIF district is a development tool municipalities can use to attract business. Here's how it works: A financing district is created, and a base value of that district is established by the taxing jurisdictions. Over the years, it's expected that the property will increase in value. The increased value of the property is still charged at the base rate, but the district uses the increased tax revenue to pay for the infrastructure projects.

This means those taxing entities receive the amount of tax revenue they did before the district was created. During the life of the district, tax revenue on new development pays off the infrastructure costs.