Council OKs Park East plan without conditions

'Community benefits' development proposal rejected by aldermen
By GREG J. BOROWSKI
gborowski@journalsentinel.com
Posted: June 15, 2004
The Milwaukee Common Council approved a no-strings-attached redevelopment plan for the Park East Freeway area Tuesday, rejecting a hard-fought push to dictate whom developers could hire and how much they would be paid.

The 9-6 rejection ends an 18-month wait for action on the so-called community benefits agreement, which had stalled the development plan for the 60-acre site on the north edge of downtown.

City officials envision more than $250 million in new offices, shops and housing for the now-cleared site, where the freeway spur once stood.

In the end, backers of the benefits agreement were unable to muster enough support for even a significantly scaled-back version of their plan, which at one point was to have required a percentage of new housing units to be subsidized as "affordable" units.

Once the requirements were rejected, the council OK'd the underlying development plan, which will essentially become a blueprint for development of the area. Many believe efforts to develop the now-empty freeway land have been hampered by uncertainty over what requirements, if any, would be imposed on the area.

"Now, I think, we can see activity and movement," said Common Council President Willie Hines, who opposed the requirements and urged others to do the same.

The vote ends, for now, what had become a debate over whether the market should be left alone in the area, or whether the city should intervene to direct the "community benefits" - that is, the higher wages and jobs - toward those deemed to need it most.

The final version called for requirements, such as contractors paying union-level "prevailing" wages, to kick in only if a project received a city subsidy of at least $500,000.

"The ordinance allows the market to work," said Ald. Mike D'Amato, a primary sponsor. "The market works even if we pass this."

But critics argued that such good intentions would backfire by locking out smaller minority-owned firms and businesses more inclined to hire less-skilled workers.

The benefits plan was adamantly opposed by former Mayor John O. Norquist, championed by former Common Council President Marvin Pratt and endorsed, at least in concept, by new Mayor Tom Barrett.

But Norquist could not block it before he left office, Pratt could not pass it when he was acting mayor and, now, Barrett won't get a chance to sign such a measure, which was a priority for many of the labor unions that backed him.

In the final vote, the plan was opposed by Hines and Aldermen Jim Bohl, Michael McGee, Bob Donovan, Robert Puente, Michael Murphy, Joe Dudzik, Jim Witkowiak and Terry Witkowski.

It was favored by D'Amato and Aldermen Ashanti Hamilton, Joe Davis, Robert Bauman, Willie Wade and Tony Zielinski.

A glum group of about 25 supporters, some holding small signs that read "Jobs for city residents," watched Tuesday as the watered-down version went down to defeat.

Also watching: developer Barry Mandel, the second-largest property owner in the area, and leaders of business groups such as the Metropolitan Builders Association and the Greater Milwaukee Realtors Association.

By the end, what clergy, labor and community activists had envisioned as a landmark statement on how the city should approach development had become so small that some supporters were left to cite how few projects it could have ended up covering.

And even that version failed.

"Business-as-usual has yielded us our present state," said Wade, lamenting high unemployment rates in the central city, particularly among black males.

Bauman, who represents downtown, argued that the plan could always be adapted later - after six months or a year - if it were found to hinder new development.

"This is not set in stone for all time," Bauman said.

Backers noted that development downtown often comes at a high cost, particularly when compared to the suburbs. Donovan said labor groups and others had lobbied hard to win passage of the matter, but he was unconvinced.

"We would do well not to forget that error is often more earnest than truth," he said.

Housing approved
In a separate matter, the council approved a 53-unit housing development for land that was cleared more than 30 years ago for the Park West Freeway, before the project was canceled.

Murphy noted that it took decades to undo the damage that freeway project had on the neighborhood. The Josey Heights development is valued at $10 million to $12 million.

However, the project - to be built in an area bordered by W. Lloyd, W. Brown, N. 12th and N. 14th streets - faced opposition from some neighbors who decried the loss of green space and a playground.

In other action, the council:

OK'd an ordinance change that would make it a violation for landlords to offer to rent to groups of four or more unrelated residents without first having a rooming house license. The change from previous law that made it illegal only upon actual rental is aimed at allowing city inspectors to conduct sting-style operations around college campuses this fall.

Extended for another year a six-month trial program that requires residents in a south side neighborhood who want to sell their vehicles on the street to first get a permit.

Approved creation of a Web page, to be overseen by the city comptroller's office, to allow workers and residents to report government waste and fraud. The page, to be set up on a trial basis, is expected to cost about $3,000 to develop.

Requested other elected city officials, such as the mayor and city attorney, to submit bank statements when they file twice-a-year campaign finance reports, something aldermen are required to do under council rules.

Rejected a change requested by Barrett that would have dropped the requirement that the head of the Department of Public Works have an engineering degree. Barrett had sought the change so other experienced administrators could be considered.