Sussex Officials May Try to Jumpstart Condo Development

Despite some reservations, Sussex officials say they’re willing to pay for public improvements for a proposed condominium development and then recoup that money via a special assessment.

The village is moving in that direction even though some Wisconsin counties have backed away from guaranteeing the repayment of such projects.

“The times have changed and how you get a development done now is different than five years ago, it just is,” Village Administrator Jeremy Smith said. “We’re reverting to what we did in the '70s and '80s.”

The proposed Glen at Seven Stones condominium project calls for 56 units ranging in cost from $225,000 to $300,000 and in size of 1,400 square feet to 1,800 square feet. The units must be presold as part of the development agreement.

The project was first proposed nearly three years ago but has yet to move forward.

Under the special assessment, the village would pay for public improvements, such as road construction and grading, in order to allow the developer to start a project without fronting the money for improvements.

Under current rules, a failed special assessment is taken control of by the county, which sells the development to recoup losses on behalf of the municipality. Although some counties have stopped backing the assessments, Waukesha County hasn't.

The assessment, which is estimated at $1.75 million, would be repaid in 10 years by the developer. Smith said the village would also receive interest payments on the money and it would allow for the development to move forward more quickly.

Although Public Works Committee members expressed concerns about the current state of the condo market in the metro Milwaukee area, developers said other projects initiated by the developer are going strong.

A condo development by the same developer has sold all of its 132 units in Menomonee Falls, 1nd all but 12 units in a 46-unit Brookfield development have sold in a little more than one year.

“His current project in Brookfield has more sales than he can get financing for,” said Herb Gross, one of the developers of the project.

Committee members also expressed concern about condo market saturation in the village if the also known as the Mammoth Springs project, were to include condominiums.

But Smith said at this time the developer of that project is examining apartments for that development with the potential of turning them into condos at a later date.

Trustee Pat Tetzlaff said there is a market in the village with residents who are looking to get rid of their houses but want remain in Sussex.

“Even though the economy is the way it is, I think there’s a segment of the population that hasn’t been effected and they’re just living their life,” she said. "I’m on board and they’re beautiful condos.”

The proposal will now go to Plan Commission for approval and administrators will discuss potential steps the village can take to ensure it will be financially secured if the project fails.

If approved, the village will not need to borrow money to finance the project.