Two pending Oak Creek developments, one involving new retail space and the other for a light industrial building, could receive city financing help.
The city would provide around $3.5 million to help finance the projects, which would together provide $15 million in new property taxes, according to the proposals.
Both plans involve creating tax incremental financing districts, which need Common Council approval.
Cities that spend money through such districts get their funds repaid through property taxes from new developments. Once those funds are repaid, the new property taxes go to the general fund of the city, school district and other local governments.
The larger amount of money, just over $2.6 million, would help finance a 180,000-square-foot light industrial building to be developed on 10.5 acres north of W. Rawson Ave. and west of S. 6th St., according to city documents.
The building would be developed by Chicago-based HSA Acquisitions Inc. on a site that is largely vacant, and needs an environmental cleanup. It would be completed by 2019.
The industrial development is expected to have a property value of $10 million. The city would recover its costs by 2032.
Also, the city would spend $885,000 to help finance retail buildings, including a 22,000-square-foot grocery store and 6,000 square feet of additional space, near the northeast corner of S. 6th St. and W. Drexel Ave.
That 5.9-acre site, just north of Drexel Town Square, now includes a self-storage center and a vacant industrial building. The retail buildings would be developed by ICAP Development LLC.
The grocery store and smaller retail building, to be built in 2018 and 2019, are expected to have property values totaling $3.5 million.
A future phase, with 15,000 square feet, would provide an additional value of $1.5 million. The city would recover its costs by 2029.
The plans for both the industrial and retail developments don't disclose the names of prospective tenants.
Public hearings on both tax financing proposals are scheduled for the Plan Commission's Feb. 13 meeting.
Tom Daykin can be emailed at tdaykin@jrn.com, and followed on Twitter and Facebook.
