Festival Foods store contingent on intersection reconstruction

By Kevin Braley, Herald Times Reporter

MANITOWOC — While the grocery store chain Festival Foods is committed to a new, 77,000-square-foot location in Manitowoc, the deal hinges on the reconstruction of a "bad" interchange on the city's southwest side, City Planner David Less said.

Reconstruction of the intersections at Dewey and South 42nd streets and South 42nd Street and South Frontage Road is contingent on a tax-increment finance district amendment to include the area, Less said.

Without the TIF amendment and the subsequent interchange reconstruction, Festival Foods and a planned Kwik Trip convenience store "won't happen," Less said.

Less said the intersections need to be redesigned.

"As that area gets more dense, it's going to become more problematic," Less said.

Festival Foods plans to build on South 42nd Street, near Faith Evangelical Free Church, Less said. Kwik Trip will be constructed at the corner of South 42nd and Dewey streets.

The city is in the process of amending TIF 15 to include 109 acres southwest of Calumet Avenue. TIF 15 includes the Harbor Town development northwest of Calumet Avenue and the Wal-Mart development.

The proposed TIF addition is bordered by South 42nd Street on the west, and South 35th Street on the east. The majority of the amended TIF area is south of Dewey Street, with the exception of an area north of Dewey Street, bordered by South 39th Street on the west and South 35th Street on the east.

While construction costs for the intersections haven't been finalized, Less said the project is estimated to cost about $2.7 million. Dewey Properties, the developer of Harbor Town, is expected by the city to fund the reconstruction of the intersections.

Manitowoc will repay the developer with taxes collected from property owners in the TIF district.

On Wednesday, the Plan Commission will host a public hearing on the proposed amendment. If approved by the Plan Commission, the Common Council is expected to act on the amendment on March 17, Less said.
Wednesday's meeting will be held at 6:30 p.m. at Manitowoc City Hall, 900 Quay Street.

State law requires the city attach an estimated cost of possible future projects in the added TIF area. The city has estimated future growth to cost the city $10 million, Less said.

The city is not committed to any projects in that added area at this time, but can spend up to $10 million on future projects if deemed necessary, Less said.

The city has not borrowed the $10 million and won't borrow any money for the TIF district until a project is approved.

Less said the amendment and new intersection reconstruction project will have a minimal effect on the TIF district, because of the estimated tax base of $9 million and the estimated $2.7 million cost of the intersection reconstruction.

By state statute, the improvements in TIF 15 must be paid off by 2024. Less said the city expects the district to be paid off by approximately 2018.

Neither Festival Foods nor Kwik Trip has begun construction. Less said the businesses are waiting for the TIF amendment to be approved.

Festival Foods and Kwik Trip construction and the intersection reconstruction will be going on at the same time, and are expected to be completed by October, pending the TIF amendment, Less said.

Festival Foods has locations in Appleton, De Pere, Eau Claire, Green Bay, Oshkosh and other cities. The chain also has stores in Minnesota and Pennsylvania, according to its Web site.

Kwik Trip has locations throughout Wisconsin, including several in the Lakeshore area.

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