MIDDLE MARKET HIGHLIGHT, FEBRUARY 2006

RACINE
Karen Stone, CCIM

Located on the shore of Lake Michigan approximately 60 miles north of Chicago and 30 miles south of Milwaukee, Racine has experienced a shift from its traditionally industrial-based economy to a more diversified market.

Since the 2003 opening of the Racine Art Museum, which houses one of the most significant collections of contemporary crafts in the country, art galleries have been popping up on surrounding blocks downtown. To accommodate the growing artist community, in mid-2005, Madison, Wisconsin-based Gorman and Company opened the 200,000-square-foot Mitchell Wagon Factory Lofts, a collection of approximately 100 homes that offers residents more than 5 acres of floor space and specialized on-site amenities, including dark room facilities, a kiln and a fitness center. The apartments are designed to function as live/work spaces, and feature 14- to 20-foot ceilings and ample open space for work studios.

The Mitchell Wagon Lofts are the second residential project undertaken by Gorman and Company in Racine's downtown area. In 2002, Gorman built the 75-unit Belle Harbor Apartments in a former factory building that sits along the Root River in downtown. Gorman is now underway on its third area project, located along the river at 141 Main Street. The project, called State at Main, is designed as a mixed-use project that will appeal to “zoomers” — baby boomers that want an active retirement but do not want to maintain their own homes. The $19 million, four-story project will feature 17,000 square feet of street retail, 84 apartments and 23 top-floor condos. Bids for a general contractor for the project were received in January and it is estimated that the project will take 15 months to build.

Brian O'Connell, director of city development for the city, believes Racine is in the early stages of its in-town housing trend. “We feel that we have the potential to support more residential units in downtown because of two current trends. First, demographic information is showing us that both zoomers/empty nesters and young professional adults want the synergy of an in-town environment. Secondly, we are seeing a dispersal of the working populations of Chicago and Milwaukee because of the development and expansion of convenient transportation. Workers from these large metro areas are locating to Racine and similar cities because housing is affordable and commuting has become much easier.”

Racine is supporting growth in the downtown area by focusing its time, energy and funds on cleaning up and redeveloping brownfield areas. One project, known as the Southside Industrial Park, consists of 14 fully developed acres. The city spent $2 million acquiring and cleaning up the site and is now spending $1 million on infrastructure improvements.

The city is also redeveloping 9 acres situated one block from the lakefront in downtown, which was formerly the home of Walker Manufacturing, an automobile muffler manufacturer. In December 2005, KeyBridge Development Group of Waukesha, Wisconsin, was chosen to develop the site. Preliminary plans include a $75 million, 250-unit condominium project that will consist of three buildings, one of which will be 14 stories tall.

Development activity is not just a downtown happening in the Racine area, according to Gordy Kacala, executive director of the Racine Economic Development Corporation. Five major projects are underway throughout Racine County. The Village of Caledonia, located east of Interstate 94 to the northwest of downtown, has just completed a plan designating new land areas for commercial and residential development. The Village of Mount Pleasant, located in the southeast quadrant of State Highway 20 and US Highway 84, is working with Chicago-based Lakota Group on a 23-acre development plan, the design for which should be completed by the spring. The plan includes an expansion of sustainable water and sewer facilities to support increased development.

The Village of Union Grove, located in central southern Racine County, began redeveloping its central business district during the past year. The Village of Burlington in the far western portion of the county just completed a $17 million renovation of its waterfront that features new bike trails and other amenities.

The Village of Sturtevant, located west and slightly south of downtown Racine, has become home to the recently opened Center for Advanced Technology and Innovation (CATI). CATI was formed to promote business development and technology innovation in southeast Wisconsin through the development and application of underutilized or orphaned, privately developed intellectual property.

Development is increasing and Racine is poised for significant growth this year. “We have standards that promote high-quality development,” Kacala notes. “Our overall goal is to maintain the identities of our communities while becoming a part of the Chicago-Milwaukee corridor.”

©2006 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.