Caledonia’s village board pulled the plug Thursday on a proposed public support package for a 130-unit apartment complex, voting 4 to 3 against a development agreement that would have delivered about $2.4 million in local assistance. The rejection leaves F Street’s project for the southeast corner of Four Mile Road and North Green Bay Road in limbo and its financing path unclear.
Trustees turn down the financing package
According to the Milwaukee Business Journal, the board declined to approve a development agreement that had been structured around roughly $2.4 million in village support. The proposal relied on a pay-as-you-go reimbursement from Tax Incremental District No. 6, which would have paid back certain project and infrastructure costs over time. Without that agreement, those expenses remain uncovered and the deal is effectively stalled.
Village paperwork and the proposed agreement
Village records list the applicant as F Street Caledonia, LLC and show the developer asking for a pay-as-you-go incentive from TID No. 6 to help cover site work, according to the Village of Caledonia. The proposed reimbursement agreement, identified as Resolution No. 2025-093, pinpoints the 17-acre site at the southeast corner of Four Mile Road and North Green Bay Road and cites Wis. Stat. §19.85 as the basis for handling negotiations in closed session. The item had previously been discussed and then laid over at a June 2 meeting, per a meeting summary from GatherGov.
What F Street had pitched
F Street, partnering with Racine County affiliate Northterra, rolled out the concept in April as a 130-unit, Class A apartment community on the 17-acre parcel. The company highlighted the plan on its F Street site and said it had already advanced work on site plans and traffic analysis ahead of the crucial board vote.
Why the vote matters
Backers of the project framed it as a way to ease tight rental conditions in the area. F Street’s capital markets arm recently shared that Racine County needs about 2,150 additional rental units over multiple years, based on third-party market research, according to a post on LinkedIn. The 4 to 3 split on the board underscores how divided local officials remain over tapping tax increment financing for private housing in growing suburban corridors.
What’s next
With village backing off the table for now, F Street has to decide whether to scale back its ask, look for more private funding, or try a different approach altogether. The company had not publicly responded to the vote on its F Street feed as of publication, and residents will have to keep an eye on future village agendas to see if this project, or a reworked version of it, makes a return appearance.
