By Kevin Boneske
Staff Writer
AHSWUBENON – A development agreement for the construction of a third luxury apartment building as part of The Element was approved Oct. 27 by the village board.
Community Development Director Aaron Schuette said the third building, which will have multiple stories with a minimum of 68 units, received board approval for the site plan in March, while the development agreement was previously reviewed a number of times by the board in closed session prior to final approval.
“This is being brought to you for the formal review and approval for the development agreement, which would include a $1.7 million tax increment financing incentive in exchange for a projected assessed value of $8.8 million,” he said to the board.
Schuette said The Element guarantees, for a period of 20 years, a minimum increment of $7.831 million to increase the property’s value with an annual increase in value of 1.5 percent increases during that time.
The agreement’s tax revenue payment schedule includes, after an initial payment of $34,960 for tax year 2021 payable in 2022, the payment to increase the following year to $153,824 and then subsequent 1.5 increases taking effect until reaching $201,100 in tax year 2040 payable in 2041.
Schuette said the tax revenue payment schedule reflects when the third apartment building would be completed no later than Dec. 31, 2022, with the $1.7 million tax incremental financing incentive being paid out when the occupancy permit certification is issued by the village and confirmation of the minimum assessed valuation.
He said the agreement is an exercise of Slinde Realty’s option as provided in the development agreement for The Element Buildings No. 1 and 2.
Building No. 3 will be located immediately north of Building No. 2 at the corner of where Element Way turns to the south.
The site plan calls for a green space area for residents to include an open-air shelter, two fire pits and an outdoor grilling area southwest of Building No. 3 with a paved, multi-purpose trail extending from Element Way to the northeast and connecting to a future trail extension to Morris Avenue through the Bohemian Park apartments.
The Element could construct as many as five buildings consisting of approximately 350 luxury apartments with the planned unit development.
If Buildings No. 4 and 5 are developed, they would be located west of Building No. 3.
Located on the north side of Marvelle Lane between Holmgren Way and Oneida Street, the multi-phased redevelopment project is the collaboration between Slinde Realty, FCM Corporation and the Village of Ashwaubenon.