Thursday, December 10, 2009

Where is the Win-Win on the Edgewater (Or How Developers Make it Hard on Themselves)

The win-win, is on East Washington.

A week or two ago, a neighbor posed this question on a listserve.
I know most are getting sick about the Edgewater discussion. Everyone on this list is well aware of the condition of the commerce on East Washington -- or lack thereof. We have a newly abandoned Madison Dairy, a vacant Mautz paint factory, an almost vacant Marquip factory, Don Miller is almost completely gone, and we have a huge abandoned Union Corners development. Some influential people in this city are bending over backwards to give $16 million to a luxury hotel that will charge $300/night that none of us will ever stay in. No serious amount of long term jobs. The developer refuses to build to the standards of which the property sits, so let's wake up and kill this project now while we have a chance, and divert this money to a stimulus package to invite real jobs to town. Let's invite proposals for all these decaying properties and long lost jobs so that we can once again be proud to bring visitors up East Washington Avenue. I would bet the mayor never brings guests up East Washington -- and it is a shame that the gateway to our city is falling apart.

This is a shameful hour for our city.
Michael Donnelly makes the same point.

If you think about it, East Washington has plenty of development potential. It has neighborhood support for development (TLNA, BUILD, others), tall (max 12 - 15 story buildings) and dense development. No shoreline zoning and waterfront development issues. It's not in a historic district. It is in a TIF district. There's no 1965 ordinance or problems with building in a city owned right of way. It's ripe for the picking. Had they chosen to develop there, they wouldn't have had all this opposition. (A full list of the Edgewater obstacles here.)

You see, developers can make it easy on themselves or they can do things the hard way. I mean, I'm sure a developer as sophisticated as Hammes Company looked into and explored all the issues they would have to face and still made the decision to move forward. I'm not sure how they ever planned to get through all the issues they had to get through, but they had to have known the challenge it would be.

And when they do things the hard way, I don't really think its fair to complain about a "broken process". See, the rules are there to provide predictability to the developers, something most say they value. Those who know the rules, saw this showdown coming over the landmarks ordinance (not to mention the Zoning Board of Appeals issue.)

Of course, equally challenging, is the Apex proposal. Move a Frank Lloyd Wright Landmark House? Or build on a parking ramp which may or may not be possible? Let me say again, East Washington, East Washington, East Washington. That is where we want the development. I don't know how much more clear we could be - plans and a TIF district are in place. I don't understand why developers take on projects that seem to be going no where when there are other opportunities (with support from neighborhoods) that are wide open.

Say it with me "EAST WASHINGTON!"

8 comments:

  1. Leo says

    Hammes wants the Edgewater because the location is the primo spot in all of Madison. But because of that, the city should have more say.

    The mayor is a darn poor businessman to offer a $16 million subsidy right up front for development of such prime property.

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  2. Stab in the dark. Because they see the current locations as better use of THEIR money.

    How bout the perpetually whiny put up some of their OWN money and invest it into building on the east wash corridor.

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  3. With such a prime location for a hotel, the Hammes Co. (with offices in Boston, Chicago, Corpus Christi, Dallas, Denver, Houston, Los Angeles, Milwaukee, Orlando, Philadelphia, richmond, Seattle, St. Louis, Washington DC)

    shouldn't need a $16 million handout from Madison taxpayers.

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  4. Hey Brenda,

    Do you know whether the hotel that is almost complete on West Washington (across from the where the new Central Library will be) received an TIF money? It is being built as we speak.

    My understanding is that to receive TIF money the developer/owner has to prove that, but for the TIF money, the project would never be built. I assume that argument gets much more difficult to make if someone else just built a hotel without TIF money in a less desirable location (i.e., w/o the lakefront.

    Thanks.

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  5. I believe the W. Wash project received $4M or so in TIF for the underground parking associated primarily with the condos but which also serves hotel and retail.

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  6. LOL, Anon #2!!! Most people don't get that part of it. It's not their money!!! The TIF money goes toward the "Public" part of the project, i.e. the Plaza, which has to be left undeveloped because of the View Shed to the Capitol. Without that aspect of the Project, I doubt TIF would even factor in. The location is why the Project is there. As if the NIMBY's would let anyone develop the East Washington corridor. Oh..maybe if it's all one or two story retail that creates no noise or traffic. No one will do a project if it's not profitable for them!

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  7. East Washington or the Royster-Clark factory off Cottage Grove Rd -- both areas in decay with recent city planning efforts. The Edgewater is just so much political hocus pocus coming from Hammes and the mayor's office. Indeed this has all been skillfully crafted. The number of hurdles this hulking giant must clear makes wonder what the payoff is. If one takes cues from the past Bush administration, one might wonder if this is a grand diversion from something darker and more sinister happening elsewhere. Regarding $16M TIF, that is meant to shock so they can get away with $8M-$10M. This is fine case of the rich stealing from the poor -- again, straight from the Bush/Cheney playbook.

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  8. The TIF was for the condos (phase 1), not the hotel. http://legistar.cityofmadison.com/detailreport/?key=5877

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