Appleton to contribute $ 1.8 million for the redevelopment of the Zuelke building
APPLETON – The city will contribute approximately $ 1.8 million over 15 years to encourage the redevelopment of the historic Zuelke building into a residential and commercial complex.
The Common Council approved the public engagement on Wednesday.
Tegethoff Development, an Indiana-based developer operating as Zuelke Flats, plans to create 66 market-priced apartments on the top 11 floors of the 12-story building located at 103 W. College Ave. Units range from studios averaging 547 feet of space to two-bedroom, two-bathroom apartments averaging 1,050 square feet.
The first floor will feature approximately 750 square feet of retail space and tenant amenities, including a rental office, business center, game room, dog wash, and fitness center.
The basement will be converted into a TV lounge and storage space for tenants. No parking is included. Tenants will use nearby municipal parking lots.
In addition, the project will include the construction of a patio facing Houdini Plaza. Tegethoff Development will lease the area for tenant use, but it will be city-owned and accessible to the public.
Construction is scheduled to begin in August and finish in early fall 2022.
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According to the development agreement, the construction will cost $ 17.6 million and create a taxable property value of at least $ 8.7 million. That’s an increase of $ 6.8 million from the property’s current value of $ 1.9 million.
The downtown property is located in one of the city’s tax boosting districts. The development agreement stipulates that the city will pay the developer 90% of the property taxes collected on the differential value for 15 years, estimated at $ 1.8 million. Incentive payments will start in 2024 and end in 2038.
When a municipality creates a TIF district, any additional property taxes generated by a new development in the district – the increase – are set aside to cover the costs incurred or promised by the municipality to achieve that development. The tax revenue from the increase is diverted from the school district, county, and technical college as long as the district is in place.
The Zuelke building was opened as a seven-story office building in 1931 and expanded to 12 floors in 1951. It was largely vacated in anticipation of the project.
The property was added to the National Register of Historic Places in 1982 as part of the College Avenue Historic District. Tegethoff Development intends to capitalize on historic tax credits.