Wangard Closer to Building in Oconomowoc

Yesterday, the Oconomowoc Common Council approved the final plans for Wangard Partners' Meadows at Prairie Creek.  This is not Wangard's first project in Oconomowoc as they previously did the retail shopping center Prairie Creek Shoppes.  The proposed apartments will have either 204 units in the first phase, eventually 352 units total or 208 units, depending on who's reporting.  Apparently they will be spread out over 12 buildings on either 27.8 or 60 acres, again, depending on who's reporting. (My guess is the site is 60 acres, but the buildings will occupy roughly half of that site.)

What's a bit unusual about this development is that a portion will be financed with Midwestern Disaster Area Revenue Bonds  (due to the 2008 floods) which will be issued through Oconomowoc.  Essentially the City is arranging for a loan to Wangard through the bonds.  With the bonds comes the requirement that 20% of the units will be affordable to people with 60% of the Area Median Income.

Some people would charge, like Alderman Gary Kohlenberg did, that this is a government subsidy.  If this is subsidized, it is a developer subsidy rather than a tenant subsidy as those bonds have a lower interest rate, saving the developer money.  The bonds just happen to come with strings attached in the form of affordability requirements (just as tax credits do).  As Mr. Derosa from Wangard noted, those bonds are no different than the routinely used industrial revenue bonds, and I can't remember any protestations over the use of those.