A Milwaukee office tower’s conversion into nearly 400 apartments would get another $2.2 million in city financing help – on top of $14.4 million already approved – under a new proposal.
That’s due to the project’s $21 million construction cost increase.
100 East office tower’s redevelopment into 373 apartments is to include 75 “workforce housing” units. Those have monthly rents affordable to people earning no higher than the Milwaukee area’s median income – starting at around $1,600 for a studio unit.
Mayor Cavalier Johnson’s Department of City Development in 2025 secured Common Council approval to provide tax incremental financing of $14.4 million for the project – which then had a $165 million pricetag. That cash would come from property tax revenue generated by the apartments.
Now, the department is asking the council to approve another $2.2 million grant. That’s according to a public hearing notice posted on Feb. 12.
The costs are now estimated at $186 million, said Madison Goldbeck, department marketing and communications officer.
The Redevelopment Authority board will conduct that hearing on Feb. 19. Council review is to occur in March.
100 East’s conversion is led by Klein Development Inc. and investor/developer John Vassallo.
The additional grant is the last remaining piece to the financing package, Vassallo told the Milwaukee Journal Sentinel.
The conversion work is to start in April if the additional funding is approved, Vassallo said.
Several Milwaukee development projects have run into delays tied to higher loan interest rates and inflated construction costs.
The first grant for 100 East, which received council approval in July, calls for annual payments to the developers from its property tax revenue.
Those payments stop after 16 years. The tax revenue then flows to the city, Milwaukee Public Schools and other local governments.
100 East’s financing package includes federal and state historic preservation tax credits. The office tower, which opened in 1989, was declared historic by state officials because it exemplified the Post-Modern architectural style.
100 East lost its anchor tenant, the Michael Best law firm, when it moved in 2020 to the new BMO Tower. Meanwhile, a shift to remote work has hurt demand for office space.
(This story was changed to add new information.)
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram,Bluesky, X and Facebook.
This article originally appeared on Milwaukee Journal Sentinel: 100 East apartment conversion seeks more city cash as costs rise
Reporting by Tom Daykin, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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