Q & A with Brandon Rule of Rule Enterprises
- Have you worked out any more details of your plan? Our plans are about 90% complete, but they’re still preliminary. We still don’t have environmental and engineering plans. How is the grocery store oriented? (The City is requiring entrance on Park to "activate" the street.) The grocery store is on Park.
- How is the search for grocery store coming? Commitment by a grocer is dependent on site acquisition. The grocers I’ve talked with don’t want to commit until it’s a deal. But I have good partnerships throughout the construction community and links to grocers. I am confident that I will be able to find a grocer who wants to come to Park Street, once I have a contract to buy Truman Olson. Once I can show land is mine, it is easier for them to say yes.
- Can you build to make a low rent for grocers possible? My research has indicated that $11-$14/square foot is possible. (This is in the range that Mauer’s has indicated they could pay.) I am offering a low price per square foot to be able to build out a larger footprint )30,000 sq. ft.) for the supermarket because I heard community say it wanted a larger grocer. For any larger grocer that may be interested, my price is already pretty competitive. I am open to changing the size of the supermarket to suit the grocer and accommodate the rent they can afford. If I were awarded the proposal and Mauer’s wanted to come in with me, it could.
- What will you do if you do not get WHEDA funds? Will your project fall through? (The 4% tax credits have more frequent and rolling deadlines.) I have two back-up plans. If the WHEDA 4% credits were to fall through (and I don’t think they will because Truman Olson is an excellent application for these funds), I could apply again the next year. am also in conversation with Forward Community Investments of Madison, which provides financing to nonprofits, cooperatives and, in rare circumstances, for-profit businesses for community-based, mission-focused projects addressing the root causes of racial disparities and socioeconomic inequities.
- When would the city have to complete the road for you to build the supermarket and 150 housing units in 2021? The construction can occur concurrently.
- What would you say is the city's greatest concern about your plan and how do you address that? The City was not familiar with 4%WHEDA loans. These have not been used in Madison, and they were uncertain how it works. The City is doing its due diligence. They don’t want this development to fail. However, to date all of my team’s WHEDA applications for 4% credits have been awarded funding.
- Is there the possibility of changing the balance of market rate to affordable housing? I understand fully the need for affordable housing, and it all comes down to what % of a person’s/family’s income goes for rent. I needed to propose a larger project to be able to request the 4% WHEDA credits; of the 150 units, none is at market rate. I have proposed 30 lower-income units (30% AMI), 20 units at 50% AMI, 30 at 60% AMU, and 70 at 80% AMI. If awarded the project we will do a market study of local rents. The second building, which I do not need to build, if the community wants less density, will be all workforce housing. There are no traditional market rate units in the development.
- Can you lower your ROI to make a lower rent for the supermarket possible? I am already offering a lower rent for a supermarket than other developers. This is a valuable addition to the community. I don’t want it gentrified. We’re dealing with increased costs for construction these days and we need to find a competitive solution. If the City were to find a way to subsidize part of the grocery store, I would be willing to use that subsidy to lower the rent. I am also ready to ecplore the possibility of a subsidy through Congresswoman Barbara Lee’s national Healthy Food Financing Initiative.
- Is all the underground parking both for residents and for shoppers/visitors? Grocery stalls with be separated from residents’ parking. Phase I has 90 underground parking for tenants and 85 surface spots for grocery customers and staff. There will be three types of parking; at grade, underground, and above ground with all 2 phases.
- What is the possibility of including space for the surrounding neighborhood/community to use? Community/meeting space is possible. Also lockers (Amazon, etc.), pick-up areas, covered area for shared rides (Uber, taxi, etc), working with SSM on kitchen space, a commercial kitchen possibility. I am open to discussing with the community what amenities it might want.
- What lessons have you learned from your projects in Milwaukee that will benefit South Madison? I’ve learned the importance of working with partners and pooling resources. I had eight financing partners for SEVEN04 in Milwaukee and Walker Point Commons.
- How do your plans accommodate people with physical and sensory disabilities as they navigate in the grocery store and their living spaces? We will use the Wisconsin Green Build home checklist for accessibility for fair housing and will work with the grocer on grocery design.
- Thank you for this meeting. You've said that “The only way to create a sustainable community is to listen to all parties within it.” How might we continue to work together if you are chosen by the city to develop Truman Olson? I cannot overstate my availability for engagement and support for the South Madison community. I am willing to arrange additional neighborhood meetings through South Madison Unite! and I have a relationship with Forward Community Investments. If not selected for this development, I am willing to work with neighbors to help you figure out what is possible.
- What environmental contamination is present on the T-O site to qualify it for the $500,000 WEDC Brownfields Grant? Are you prepared to roll this into your private first mortgage if the grant isn't awarded? My experience is that there are often environmental issues with these kinds of projects. There are other sources of funding to address these issues that could be used.