Thanks for putting this together, it is quite concerning. Next gen housing sounds like a great way to destroy Germantown. And we are profiting from selling our precious water to Richfield, but our costs have to go up? And what do WE get for building infrastructure for the orwellian Holy Hill tech park?
Good question. The Richfield IGA referendum (which passed narrowly) sounds good in theory. We bring our water and sewer lines to a connection point in the Holy Hill area, and Richfield uses it to build out their industrial parks (initially) and go on from there. And our Village touted $8-10 million in new infrastructure Richfield was paying for that the Village did not have to. What they did not know (or tell you) is the tremendous cost Germantown is looking to spend in their own infrastructure costs, most of which would NOT have been necessary (not now, and would have happened slowly over time, allowing us to PLAN for it) if we had not agreed to the IGA. $26 million in NEW costs, likely more. This will prove to be a financial disaster for us. We can't keep up with our current aging system and its costs. We started putting down sewer and water in the mid 80's so now those pipes are 40 years or and maintenance needs are rising substantially. Germantown did a poor job of negotiating the terms of the IGA, as we agreed to do ALL MAINTENANCE on any new Richfield sewer and water lines FOREVER (no sunset provision). How is that a good deal for us? We will NEVER see enough revenue from this to match the cost of doing it. Right now, our water utility is running in the red to the tune of a little over $1 million a year and we can't upcharge the water we provide to Richfield due to limits placed on the PSC. Richfield definitely go a heck of a deal!! What we "GET" for the ugly structures in the Holy Hill area are the opportunity cost losses of property tax revenues tied up in the TIDs until 2029 at the earliest. NO new tax revenue to help pay for the ever increasing costs of services.
I was totally unaware of this impending boodoogle....this
Washington County Next Generation Housing Initiative Summary
Was started when interest rates for housing was low. They pretended that it was all about single family housing. Now that interest rates are high, all of their original assumptions are blown out of the water. Are we now going be forced into a Village of Germantown "process" in which we totally degrade our formerly fine village into disgusting developments like Jackson. Our tax money is being used, $7.5M just for the study portion. We were enticed into this by "free money" from American Rescue Plan Act of 2021 (a COVID era boondoogle) $2.5, but we had to pony up $7.5M. Then VoGT hires a Chicago area firm to tell us what is best for us? Seriously folks, this is where we are at, and it is being driven also by pretty tight deadlines, March 1 is one of them.
Do you want this for Germantown, I think we need 24 strong voices speaking at the next village meetings, and if you can't attend, send a letter and get someone to read it. I do not know the process, I just got into this via Nextdoor.
Summary by AI
Washington County Next Generation Housing Initiative Summary
1. Background
Fund: Washington County Next Generation Housing Fund - $10 million ($2.5 million – ARPA).
Purpose: Addressing the impact of COVID-19 on the local community, focusing on declining workforce and population.
Resolution 22: Approved $7.5 million transfer from the General Fund for the Next Generation Housing Initiative.
ARPA: Provided $26 million for economic and community recovery.
2. Public Purpose
Concerns: Workforce shortage and high living costs affecting housing affordability.
Study Findings: Disparity between housing demand and new construction offerings.
Challenges: Aging population, slow growth rate, potential impact on local organizations relying on volunteers.
3. Our Great Community Campaign
Aim: Preserve and promote Washington County values and quality of life.
Initiatives:
Next Generation Housing
Social Capital
Workforce and Education
4. Next Generation Housing Vision and Goals
Vision: Navigating housing opportunities, providing attainable housing options, and building a diverse housing population.
Goals:
1000 new owner-occupied dwelling units by 2032.
Overcoming barriers to home ownership.
Ensuring quality homes within 30% of household income.
5. Overview of Next Generation Housing Developments
Pricing: 75% sold for under $320,000, 100% under $420,000.
Pricing Limits: Based on 2022 annual median household income of Washington County.
Annual Review: Adjustments to pricing limits based on current income and interest rates.
Funding: $6.75 million for three pilot developments, 0% loan for infrastructure construction.
6. Implementation and Funding Components
Partnerships: Collaboration between local governments, developers, and builders.
Requirements: Substantiate costs, provide information on discounts, and work completed.
Deed Restrictions: Five-year restriction on resale to prevent "flip for profit."
7. Next Generation Housing Fund Budget
Components:
Down Payment Program ($2.5 million – ARPA).
Pilot Developments ($6.75 million).
Start-up Funds ($750,000).
Private Developer or Builder Funds ($750,000).
8. Limited Timeframe for Local Government Use of NGH Funds
Deadlines: March 1, 2024, for startup and pilot funds.
Substantive Progress: Criteria include land purchase, environmental due diligence, or draft development agreement.
9. Conclusion
The Washington County Next Generation Housing Initiative aims to create affordable housing solutions, addressing the challenges posed by the workforce shortage and housing affordability. Through strategic partnerships, funding mechanisms, and annual reviews, the initiative seeks to provide sustainable housing options and contribute to the overall well-being of the community.
Village of Germantown update (things you likely don't know)
1)The Village "unveiled" a plan for an EXTRA $26 million in spending in the Holy Hill Industrial area and Freistadt Districts. They want to run roads and MORE sewer and water lines and make a private railroad crossing a public one, build frontage roads, etc., leading to MORE commercial development. Who asked them to do this? No resident I know!
2)Next Generation Housing: The Village had a housing study done by Schaumburg, Illinois based Tracey Cross to look at housing needs in the Germantown area. Washington County paid for the study, so they got what they wanted. Apparently Germantown is the "ideal place" for
Next Gen Housing, as the study identified TWELVE areas where it would fit, including areas close to Dheinsville and on Main Street across from Gehl's. And the Village is buying the old Groesnick property behind Big Boys and the Bier Stube, and the suggestion was to put 60 apartment units on that 5 acre parcel. Which resident asked them to do this? Not anyone I talked to!
3) at a recent Plan Commission meeting, a developer brought forth a plan for 580-600 unit high density housing plan just north of the Germantown School District offices. Even if scaled back, would be 700-1000 EXTRA cars on 145 and Donges Bay Road every day. Where do people come up with these plans? Do we want Germantown to lose its rural charm and become a city, like Brown Deer or Tosa or others? Once again, were the residents of Germantown asked their opinion on these projects, ANY of them? NO! Because the Village KNOWS what you want.
Also upcoming: a) We are all being assessed in 2024, so be prepared. b) based on recent projections, even though water utility customers got hit with a 68% increase in water rates in 2022, another 9-10% will be added when the water tower currently in pieces is put up. Also, a recent study by Ehlers showed we likely need to increase water rates another 25-40% in the next 5 years because we are running at a deficit every year. c)Sewer rates are also headed up, projections range from an increase of 3% every year to 18% in 2024 and then "we'll see where it goes" from there. Borrowing costs are close to the highest in over 20 years, and the Village is on a borrowing binge, as our overall debt has increased from $26 million to over $100 million in a few short years. Debt load per resident has gone up 342% in just the last 5 years, and the info for 2023 is still not posted.
You can't make this up, folks! Contact your trustee and come to meetings if you can. We must stop this madness!
Scott, you've provided great information. Thank you, but please look up Next Gen. Housing, Washington County.
It is about single family homes. And I talked to one of their members a month ago. If you have information about multi-family
as a part of the program, please share it.
Read the Tracy Cross report I posted on a different thread. The original intent was single family homes (Like in Jackson's project), but other communities like Hartford and Slinger had to back out due to high land costs and house builders who could not build at the prices outlined in Next Generation Housing outline. And the Tracy Cross report admits there a huge barriers to overcome. The way Jackson likely made it workable was to subordinate part of the land costs by buying the land themselves. It is also about affordability for the vendors who build and develop the projects. In most communities, the cost to builders is so high they can't make a margin they need to make it worth it to them, which is why Slinger and Hartford have pulled back from their earlier plans, it is not economically feasible to do it on the parcels that were identified. Germantown faces a much bigger hurdle, as the cost to build in Germantown is $50,000 higher than anywhere else in Washington County. The plan continues to morph as time goes along. The concept is fine in theory but implementation is nearly impossible in today's world, with high inflation and high interest rates, and the highest cost of materials and labor maybe ever.
For Your Review: The "infamous Tracy Cross Residential Analysis:
Paid for by Washington County. Going forward, I will refer to it as the "Next Generation Housing Study", because that's what it truly is. And the PUSH for this housing come from the County Board and executive. The author himself states that it costs on average 10% more (around $50,000)to build in Germantown over any other community in the area, so that is curious as to why we are the "ideal market" for this housing, but I digress.
It's a longish read (sorry), but a couple of summative points:
1)In order to make this work, government would have to subsidize the effort, which takes the form of cash incentives using ARPA funds, standardizing the elevation options (homogenous), lowering impact fees substantially, and (my personal favorite) lowering construction costs by $30 a square foot! Nearly impossible without using substandard materials, etc. No basement options and no garage options also are in the study as ideas.
2)In the 47 page report, pages 27 and 28 are quite eye opening. On page 27, the report details the Village of Germantown's purchase of 5.2 acres behind the Bier Stube and the closed down Big Boy restaurant. The suggestion is made a 60 unit project would work there, using the townhome/rowhome ideas. Again, did anyone ask the Village to buy the property and promote it for Next Generation Housing? Highly doubtful! Because they are not asking us what we want, they are doing what THEY want!
3)The report identified TWELVE parcels of land where Next Gen Housing would work. Two of the parcels are right next to Dheinsville and Isabelle Farms areas. The people I know who live out there LIKE the peace and quiet and rural feel. I believe this would ruin that forever.
4)None of this works without a significant subsidy from local/county government. And with Germantown's tight budgetary issues, where will this money come from? That's right, US!
This makes it sounds as if I am anti-development but I am not. There is a huge difference between FORCED development and ORGANIC development.
Germantown, for many reasons, will always be a place where we will be approached by developers. But we don't have to sacrifice our way of life to fill a niche need with NO input from the residents. That's my biggest pet peeve in all of this.
One final thought: Anytime you develop, you put stress on the infrastructure of the community.
Public safety, roads, utilities, etc., ALL are affected. And there is a COST to that. Keep in mind there is a referendum question on the Germantown April ballot regarding funding more police officers and firefighters, to exceed the levy to fund them. And that's just to meet the needs of NOW. What would a plan like this do???
