Oak Creek Bucyrus deal moves forward

Oak Creek — After Midwest Airlines vacated its headquarters on Howell Avenue, city officials feared they would have just another large vacant building that would sit idle for years in the middle of a recession.

Around April, South Milwaukee-based Bucyrus International Inc, a mining equipment maker, was looking to expand. Oak Creek leaders wanted to lure the company here, but were competing with all of the surrounding communities.

City officials proposed incentives that included the creation of a tax-incremental financing district and up to $2 million in property tax breaks. Bucyrus' purchase of the two former Midwest buildings, which will be used for the company's senior management employees, was announced in May.

On Tuesday, the Plan Commission recommended that the Common Council adopt a formal project plan for the TIF district, which officials says is a key step in making the Bucyrus deal a reality. The move is expected to bring between 200 and 300 jobs to the city.

Money spurs development

With a TIF district, the city borrows money to pay for infrastructure improvements - such as roads and sewers - within a defined area. As a district develops, the increased tax dollars generated by it are used to repay the loans issued for those improvements.

Oak Creek officials say this district will be primarily developer funded.

The 182-acre area district is along the east side of Howell Avenue, from College Avenue to the former Midwest Airlines property on 6744 S. Howell Ave. In addition to Bucyrus, the district also encompasses a proposed hotel development, some existing businesses and some undeveloped land.

Plans call for the possibility of $6.8 million worth of improvements, including streetscaping on Howell Avenue, sidewalks and a city entrance sign. However, the city is not locked into any specific project within the plan, said Doug Seymour, director of community development.

"That facility could have sat vacant and the city would not have been able to reap the benefits of having a world-class organization in that facility," Seymour said. "Having hundreds of great-paying professional jobs, people there every day spending money in the community … and hopefully they will see Oak Creek is a great place to settle down and live in."

More tax dollars coming

Officials are also pleased the former property will get back on local tax rolls for the first time in years. A state law exempts airlines with hubs in Wisconsin from paying taxes.

"In my simple language, this was 27 acres that we never got a dime for," Mayor Dick Bolender said. "This is an opportunity that nobody in his right mind would pass up."

"This is just another area of the city that will develop rather quickly," added Alderman Dan Bukiewicz.

Hotel could become reality

There was more good news in another part of the district.

Financing is finally in place for the first of three proposed hotels to be operated by Syner G Hotel Group, developer Greg Trapani told the Plan Commission on Tuesday.

Getting financing has been a struggle for this development because of the economy, and plans have stalled for the past few years. Plans are still not finalized but the developer is much closer than before, and the TIF district was an important step, Trapani said.

He said representatives are choosing between two brands of the hotel, which would be more upscale and tied in with a banquet facility and conference center.

"(The TIF district) is really the springboard for us to get kicked off," he said. "In the last couple weeks things have gone the right direction and we're pretty excited we'll be able to get something launched."