A senior housing zoom
Developments aimed at 'zoomers' could fuel urban renewal in Racine

By Michael Burke
The Journal Times, April 16, 2005

Seniors this tax credit's for you.

Tax credits worth $21 million will help spark four senior housing developments here, including one of Downtown's largest projects ever.

Another redevelopment project sits along an entryway to Downtown on West Sixth Street.

Gov. Jim Doyle announced the tax credits Friday morning at the Belle Harbor Loft Apartments, 134 Main St. "This really is a partnership," Doyle said. "We need people with real vision, and we need good private lenders."

All four projects will use federal tax credits granted by the Wisconsin Housing and Economic Development Authority to create "affordable" or below-market-rent housing for seniors.

The $21 million for Racine represented almost on-quarter of the $87 million in tax credits allocated. Doyle said that was largely a result of the kinds of projects proposed.

"There's a momentum clearly building here, and we see more and more of these projects coming forward," he said.

"We have worked hard to make sure we're doing quality projects. These are no the same type of housing as you would have seen 10 or 15 years ago. These are all very good projects that people will be proud to have here."

He said another factor in Racine's landing the tax credits is that this city is more economically distressed than many other parts of Wisconsin.

In all, the four projects will result in 330 living units for seniors. One is already under way.

Downtown catalyst
The crown jewel among the four local projects is the one planned for the northeast corner of State and Main streets. The estimated $18 million building, four or five stories tall, would have ground floor stores and 114 residential units above. Thirty would be condominiums and 84 of them apartments.

It would be the first new-construction project in Racine for Gorman & Co. The Madison development company also did two conversions here, Belle Harbor and the Mitchell Wagon Factory.

"This (tax credit) award is really a huge piece, but there are other components we have to put together," said tom Capp, Gorman's director of real estate development. "Remember, this is at the No. 1, catalytic spot in the Downtown plan - at least in the revised one. We want to be very deliberate about it."

"We have never had a project that got to this point and did not happen."

"It's great news," said Downtown Racine Corp. Executive Director Devin Sutherland. "Gorman is obviously experienced and always does quality projects.

"It's very cutting-edge, because it has first-floor retail and active seniors above the ground floor."

Capp called the target market "zoomers," who are active people age 55 or older. That group has been used to help fuel urban renewal on the coasts, but much less in the Midwest. He said this would be the first of its kind for Gorman & Company and the first in Wisconsin.

Gorman hopes to break ground this year and open the first units about next summer, Capp said. The company has not yet determined what sort of retailers it will seed for the first floor.

The other projects receiving tax credits:

Newly announced was Shoreline Manor at 1403 W. Sixth St. Codeveloper Patrick Anderson said they will convert the vacant building into 12 units of independent senior living.

Behind, or just south, of the historic building - erected in 1932 - they will build a new, connected building with 12 more units.

Later, they plan to expand outward with smaller buildings to create a senior campus.

"We saw a continuing trend in the strength of the senior market," Anderson said of the developers' interest in Racine. Occupancy rates are running at about 98 percent, he said.

Well under way is Hometown Harbor at 16th and Ohio streets, an $11 million project. A developer from Bettendorf, Iowa, last August started rebuilding the former West Ridge Nursing Home.

The result will be 86 units for senior-assisted lining when the property is finished, which is estimated to occur in July.

A $6.6 Million upgrade of Lincoln Manor, 5801 16th St., which is owned by Lincoln Lutheran of Racine. The work will add elevators, a new roof and windows, updated kitchens and more.

"Our primary goal is to preserve decent, low-income housing," said Lincoln Lutheran Vice President of Operations Carolyn Seeger. The tax credits will allow the upgrades to be made while still keeping rents affordable.

The work should begin in October and be finished next summer.

A WHEDA official said the projects together should bring about $3.5 million in new economic activity and create about 50 jobs.