The Forum

One of my loyal readers ollected these comments and letters from friends regarding the proposed Sunrise Assisted Living development on the riverfront and the Lakewood Building (3575 N. Oakland Ave.) Facade Grant.  (Hat tip, Jaime)

Letter 1.

I am sorry to see the Pig ‘n Whistle end up as senior housing, and it is RIDICULOUS to spend that amount of money for a facelift that doesn't look much different! 

f course, I remember picking chestnuts up from the ground that fell from the trees that grew on the lawns where the apartment buildings now sit across from the police station!  I also remember (and have pictures even!) of a clear view up Cramer from Beverly to Capitol of the towering Elm trees shading the street! I remember when the library was in a cramped space on Capitol Dr .  I guess I am getting old.  Sigh!

Elizabeth

Letter 2.

Spending these days, no matter what party affiliation you have is based on a childish notion of if I can get the money, I will spend it.  Imagine your child in Walmart with $100 dollars.   You can bet he/she will spend all of the $100.  Give him $25, and he/she will spend all of that.  Give him/her $1,000 and he/she will spend all of it, regardless of quality of goods or actual need.

I would suggest that Shorewood is looking for all that you as taxpayer's are un-knowingly, but willing to give.  Tax payers do not usually attend fiscal meetings in great numbers, and usually don't have input until the funds are asked for.   Tax payers are usually not experts on the proposed projects, and usually do not have the ability or funds to investigate costs.  Many times they just go along with the proposal.

 

Further more, taxpayers are told how little the costs will affect their tax bill, and promised that the small cost will be for the good of the whole.  Usually, the lion's share of the "good" goes to the contractors...and their sub contractors and labor force.... and I'm sure they don't live in Shorewood in great numbers.

Also, an estimate of funds needed is never a contract, just an estimate, which always grows with time.
Given the above points, it's easy to see how a huge amount could be asked for to improve a ratty old apartment building.   I agree that a facade is just that, a facade, not not real growth or improvement.

If you don't like it, attend meetings in numbers, protest call city state officials, write articles send press releases to television stations... in short make  a lot  of noise.   Just as Jaime is doing.

 

My Dad's Shorewod tax bill ( 4000 block of Stowell) is over 10 times what mine is here in Indiana!

- Dan L, Class of 1970

Letter 3. 

Hey man.

Yeah, that's a lot of money flying around, in several different directions, eh?

I used to live in the lakewood apartments, and it's kind of a ****-hole, so investing in it seems like a bad idea to me, from a business point of view.  First of all, if they improve it in any way, the residents can only benefit -- that appears, on the surface, to be a good thing.  The problem with it seems to me that it's just going to cost the residents -- aren't they just proposing this to increase the property value, get the building reappraised, and then raise rent to collect more revenue on an investment they themselves didn't make?

As far as riverbrook, I know a number of people who enjoy eating there.  So from the perspective of the standard "political baby" that I am, and many Americans are, it's sad to imagine losing the restaurant.  But senior citizen care is important -- if I read that story right, and they've considred replacing the 1111 E. Capitol propterty with a senior care facility.  I have no way of knowing how reliable or respectable the center would be, and the world does not need more crappy health care.  but a good facility, that's hard to refuse.

I'm only 25 years old.  I make many good decisions, and some bad ones.  This all probably goes without saying, but is probably important for my own personal affirmation, to remind myself of the weight or levity of my opinion.

Thank you for sharing these stories with me.

James

Letter 4.

Yeah, I'm sad to see the Pig 'n Whistle go.  :-(  My father grew up near Humboldt and Clark in Riverwest. When my Uncle Gene and Aunt Margie started dating in the 50's, one of their favorite dates was to either walk or take the bus for custard at the Pig 'n Whistle.

As for the facade renovation of the other building (Lakewood) - I don't mind it so much.  It falls in line with the modern trend of screens and planes.  $800,000 doesn't really buy that much these days.

Shelly

Sunrise Senior Living (NYSE: SRZ), the company planning to build an assisted living facility in Shorewood, made news yesterday.  The company fired their president and several senior executives following an internal investigation of accounting procedures and insider trading.   Sunrise is planning to build on the riverfront site, which currently contains the Riverbrook Restaurant, and apartment buildings. 

Sunrise executives leave after investigation

Thu Dec 20, 2007 2:06pm EST

CHICAGO, Dec 20 (Reuters) - Sunrise Senior Living Inc (SRZ.N: Quote, Profile, Research), the subject of a government probe into insider stock sales and accounting practices, said on Thursday its president and two other executives had left the company after the conclusion of the fact-finding portion of an investigation by a special independent committee.

Shares of Sunrise, the biggest U.S. owner of assisted-living facilities, jumped as much as 14.5 percent on the news.

The company announced the departures of Thomas Newell, president since April 2000; Larry Hulse, chief executive of its insurance captive since August 2005 and a former chief financial officer; and Carl Adams, treasurer since November 2005 and a former chief accounting officer.

Sunrise, which is restating its earnings for 2003 to 2005, also said the net effect of adjustments arising from its findings was not likely to increase the previously disclosed restatement impacts.

This portion of the investigation primarily related to certain accruals and reserves. The committee's review of these issues found that inappropriate accounting occurred during the third quarter of 2003 through the fourth quarter of 2005.

The company said the committee will now consider appropriate measures pertaining to internal controls and processes over financial reporting. The panel will report to the board of directors and recommend improvements to processes and procedures.

SEIU Master Trust, a Sunrise shareholder, has been urging the Sunrise board of directors to delegate oversight of its internal investigation to the two new independent directors.

"Five of those seven independent directors served on the board during the period under investigation and four of those five appear to have been involved in some of the activities under investigation, including stock option grants, insider sales, and the company's accounting practices," SEIU said in a prepared statement. (Read full Story)

We have had a lot of heavy and controversial stories about redevelopment these last few weeks. 

To break the tension and bring a smile to your face, I bring you this humorous WI State Statute.  It specifies list of days Wisconsin schools are legally required to observe. 

WI Statute 118.02 - Special observance days.

On the following days when school is held or, if the day falls on a Saturday or Sunday, on a school day immediately preceding or following the respective day, the day shall be appropriately observed:

(1) January 15, Dr. Martin Luther King, Jr. Day.
(2) February 12, Abraham Lincoln’s birthday.
(3) February 15, Susan B. Anthony’s birthday.
(4) February 22, George Washington’s birthday.
(5) March 4, Casimir Pulaski Day.
(5m) March 17, for “The Great Hunger” in Ireland from 1845 to 1850.
(5r) April 9, Prisoners of War Remembrance Day.
(6) April 13, American Creed Day.
(6m) April 19, Patriots’ Day.
(7) April 22, Environmental Awareness Day.
(7g) The last Friday in April, Arbor Day
(7r) June 14, if school is held, Robert M. La Follette, Sr. Day.
(8) September 16, Mildred Fish Harnack Day.
(9) September 17, U.S. Constitution Day.
(9g) Wednesday of the 3rd week in September, as part of Wonderful Wisconsin Week.  (Editors note: What?)
(9r) Friday of the 3rd week in September, POW−MIA Recognition Day.
(10) September 28, Frances Willard Day.
(11) October 9, Leif Erikson Day.
(12) October 12, Christopher Columbus’ birthday.
(13) November 11,Veterans Day.

I, for one, went to Shorewood High School, and never once celebrated Wonderful Wisconsin Week or Frances Willard Day.  I feel slighted, and demand accountability!

Update (12/20/07)

According to Jim Plaisted, the Executive Director of the Shorewood Business Improvement District, A.B. Data will not be leaving Shorewood.

Steve,

We have had conversations with AB Data when the Manpower deal was announced weeks ago. According to those conversations, they will still use the Shorewood building and have no short or long term plans of leaving that building.

Thanks!
Jim Plaisted, Executive Director

-------------------------- 

The last few months have brought news of major changes in the Shorewood business district.  Now it looks like another major tenant may be shuffling toward the door.  According to the Small Business Times, A.B. Data is purchasing the former Manpower headquarters, and has announced plans to consolidate "most of its employees based in Fox Point and Shorewood under one roof" (see story below). 

Real Estate Deals of the Week
Small Business Times, 11/14 2007

A.B. Data Ltd., a Fox Point-based direct marketing services firm, announced that it has entered into a contract with Manpower Inc. to acquire the former Manpower international headquarters campus in Glendale . A.B. Data has offices in Washington , D.C. , New York , Chicago and Tel Aviv, Israel.

"The 16-acre campus will allow A.B. Data to consolidate most of its employees based in Fox Point and Shorewood under one roof and with far greater amenities," said Charles Pruitt, co-managing director of A.B. Data. "The need for a larger facility is being driven by significant growth in our Business Critical Communications Group and our Class Action Administration Division," said Bruce Arbit, co-managing director of the firm. " Glendale is a great place to be."

"The Manpower building brings with it a historical legacy of a homegrown Milwaukee business success story," said Jerry Benjamin, co-managing director. "Great men like Elmer Winter with his Horatio Alger like story and Mitchell Fromstein, an international business legend, were there before us."

A.B. Data plans to move 250 people in its first phase to the facility around the first of the year.  The transaction is scheduled to close at the end of November. The purchase price was not disclosed.  Manpower moved its headquarters to downtown Milwaukee earlier this year.

For those of you who do not know where the A.B. Data building in Shorewood is, here is a map.  As a side note, the AB Data building is not located in the TIF area at this time according to this map on the Village website.

I started looking through the background of Sunrise Senior Living (NYSE: SRZ) on Google and Yahoo! Finance.  Here are the most recent headlines and news articles for your perusal.  For the latest news, stock prices, analysis, etc, try this page at Yahoo! Finance.

If you are not aware, Sunrise Senior Living is the company who is intending to purchase the Riverbrook restaurant and the apartment buildings behind it, and put in an assisted living center.  

Here also is their stock price for the last 5 years.

Several of you have expressed interest in seeing more detial from the facade improvement grant for the Lakewood Building at 3575 N Oakland.  Here is the packet from Monday Night's Village Board meeting.  Starting on Page 63 to 77 includes the financials, pictures, and a copy of the proposed contract.

Here is a picture of the condominium building to be placed on the 4500 Block of Oakland, which will be called the "Ravenna" building.

The Village Board packet from last night had much more detail.  Unfortunately, the packets are no longer available online after the meeting date, so I cannot send you the link.  It would be helpful in terms of openness to the public if information such as this were stored on the Village website permanently.

Below are pictures of the proposed facade for the Lakewood Building, which is the target of the $800,000 Facade Improvement Grant to be voted on this evening.   Full details of the proposed agreement can be found at this link, beginning on page 63 of the packet.

Village officials are opening up about upcoming development plans and votes, with stories in the Village Manager's Memo as well as quotes in an article in today's Milwaukee Journal Sentinel.  According to these stories, several development updates and significant votes are scheduled for this Monday's meeting.

The significant development today is the announcement of $800,000 of facade assistance being offered to the ownersof Lakewood Apartments (3575 N Oakland Ave).  This amount is 32 times larger the stated cap of $25,000 which is listed in Facade Improvement Program policy documents on the Village Website.  Given the unusually large amount of this request, the Village Board will consider whether to exceed the usual program maximums.  A vote on this specific grant is scheduled for the December 17th Village Board Meeting. 

1. Lakewood Facade Assistance project for Lakewood Apartments
Village Manager's Memo
December 14, 2007

Lakewood Facade Assistance project for Lakewood Apartments at 3575 N. Oakland Avenue. The Lakewood building (Menlo and Oakland) was a targeted redevelopment project as part of the Village of Shorewood Comprehensive Master Plan for the Central District. Staff has been working with the owners for over a year on several solutions to address facade, retail improvements, and apartment upgrades.  Staff has presented an alternative to the CDA, which recommended approval to the Village Board for up to $800,000 in facade assistance, based on a total new building upgrades value at $3.2 million.

For over 50 years, the Pig 'n Whistle Restaurant was a hub for teens as well as families looking for a good, cheap meal. Even after closing in 1992, it reopened a few months later as the remodeled Riverbrook Family Restaurant. 

But by next summer, the restaurant at 1111 E. Capitol Drive might be serving its last meal. A company that runs senior housing centers holds an option to buy the restaurant, with plans to demolish the building and develop an assisted-living center in its place.  (READ FULL STORY)

Action will be likely be taken at the December 17th Village Board meeting to approve significant development incentives for the new owners of the Lakewood building (3575 Oakland), according to confidential documents and sources close to the deal.  I have no desire to hurt either the Village or the owners/developers of the site, so I will not disclose the confidential amounts or nature of the assistance to be given. 

I bring this up so my readers can attend the meeting if they so desire, to provide input on the matter.  As for me, I am disappointed that this type of vote/action is taking place in the midst of the holiday season, when people are paying less attention than usual to municipal matters.

Village Trustees Mike Maher and Dawn Anderson have taken out campaign registration forms for 2008, the first step in running for reelection.  According to Village Clerk Kathy Grieg, no other candidates have surfaced at this point.  Nobody that I have talked to knows of other potential candidates who are thinking of running.

The Village of Shorewood appears to be close to finalizing deals on two of their key development priorities.  A series of closed session discussions on the possible deals is occurring this week, both at the Village Board as well as the Community Development Authority (CDA).  The following development projects are under discussion.

1. "Sunrise" Assisted Living Center (at the Riverfront).  This site was listed as the #2 priority in earlier rankings, behind the 4500 Oakland site which is already under contract.
2. The "Lakewood" Building (3575 N. Oakland).  Listed as #12 in the list of top 20 development priorities.

More information on both sites is available on this Village document outlining available properties.  Both sites were rated as high priority redevelopment sites in earlier documents and comments from VIllage officials.  In an April, 2007 interview with the Small Business times, Village Manager Chris Swartz outlined the prioritization process. 

“We identified sites that were under-utilized, not well maintained or non-conforming and came up with our top 20 sites,” said Village Manager Chris Schwartz. “We have to look for opportunities - we have to figure out what will be catalytic projects and concentrate on them and try to match developers up with projects."

The CDA meeting is this Friday at Village Hall, and is open to the public, though the specific negotiations on these sites will take place during closed session, according to the published meeting agenda.

If you are wondering what concerts I was referring to in my previous post at the Legion Post, here are some examples of past concerts, for your viewing pleasure. 

If you want to see more, here is a link to the other videos on YouTube showing concerts at the Post. 

The Police & Fire Committee met today and briefly discussed the Video Gambling ordinance.  At the end of the meeting, they did not arrive at any consensus regarding sending the matter before the full Village Board.  Whether this will come up again of future committee agendas is not clear at this time. 

Trustee Eckment is concerned about the potential widespread use of the machines beyond the American Legion Post, citing a concern that the machines could even appear in retail establishments such as convenience stores.  It is not clear whether any other establishments have indicated their intention to install the machines, if the ordinance were to be repealed.

Trustee Hickey appears to be more sympathetic to the travails of the Legion Post, with the upcoming smoking ban, and the removal of the machines.   All three Trustees (Eckman, Hickey, Maher) questioned whether support for repealing the gambling ban extends beyond the 2 or 3 people from the Legion who typically show up for meetings on the issue.  The Legion Post delivered signed petitions when this issue was on the agenda previously, but attendance levels from interested parties has lessened over time.

The committee seemed somewhat more sympathetic to the argument that restoring the machines could potentially remove the need for the loud and obnoxious concerts that the Post currently allows.  The Post hosts the concerts as a way of making up a portion of the revenue lost when the machines were removed.  Members of the Post indicated at the previous committee hearing that the need for the concerts would be considerably lessened if not eliminated entirely, if the Video Gambling ordinance were repealed and the machines were brought back.

By way of full disclosure, I am a member of the American Legion, and a regular at the post.  I started going there after the machines were removed, so I cannot give any personal accounts of the impact on traffic levels when the machines were removed.