Poths General: The Nelson Administration’s Push for Subsidy and Control

⚡ Fast Facts: Poths General

🏗️ Developer: Land By Label (Jim Pekar, also owns site through Initech LLC)

📜 Original Plan (2023):

• 426 apartments (2–4 stories)

• Hotel, music pavilion, food truck court

• 20,000 sq. ft. commercial + Ace Hardware

📉 Revised Plan (2025):

• 312 apartments (2 stories)

• More commercial space

• Hotel, band shell, food truck court eliminated

📅 Timeline:

• Demo: Nov 2025

• Construction: Spring 2026

• Completion: Summer 2028

💰 TIF Proposal:

• MRO (Municipal Revenue Obligation) structure

• Claimed “no risk to taxpayers”

• $2.5M contingent interest promised to city

• $2M surplus revenue projected (modeling only)

⚖️ State Law:

• TIF requires blight or proof development won’t occur without subsidy

• Residents argue Poths General fails this test

👥 Politics:

• District Alderman Salous sidelined

• Meeting called by Alderwoman Eichmann (out of district)

• Mayor Nelson presided with full city backing

🚨 Resident Concerns:

• Manufactured blight

• Political favoritism

• Subsidy for a project already privately financed

⚠️ Past TIF Experience:

• Ballpark Commons (The Rock) TIF underperformed

• In 2024, ROC Ventures was invoiced $1M+ in shortfall payments to cover debt service gaps

• Critics warn Franklin could face the same outcome with Poths General

Franklin residents who turned out for last night’s Poths General town hall were promised information on a reworked development proposal. What they saw instead was a polished sales pitch — backed by the mayor, promoted by an alderwoman outside the district, and framed as a financial “no risk” deal that critics say violates both common sense and state law.

From 426 Apartments to 312 — and a Shift in Strategy

The December 2023 approvals for Orchard View (PDD 42) authorized a massive buildout:

• 426 apartments in 2–4 story buildings

• A small hotel, band shell, and food truck court

• Roughly 20,000 square feet of commercial and an Ace Hardware

The new plan — unveiled by developer Land By Label — dramatically pares back housing, promising:

• 312 apartments in 2-story buildings along all edges

• “More and better” commercial space

• Elimination of the hotel, band shell, and food truck court

Demolition is slated for November 2025, with construction beginning spring 2026 and completion by summer 2028.

The TIF Pitch: Optimism Over Substance

The most controversial slide of the night outlined a Tax Increment Financing (TIF) structure:

• “No risk to taxpayers; no money to developer until increment is created”

• “Cost-saving provisions for the city”

• “Up to $2.5 million in contingent interest for the city”

• “Over $2 million in surplus TIF revenue projected”

It was pitched as a Municipal Revenue Obligation (MRO) — where the developer fronts the money and repayment comes only if new tax increment materializes.

But this framing ignores the reality:

• Future tax growth is diverted away from Franklin schools, Milwaukee County, MATC, and the City of Franklin general fund during the TIF period.

• “Surplus revenue” is based on optimistic modeling, not guarantees.

• A developer who already owns the land through Initech LLC and is pressing ahead with new plans cannot credibly claim the project “would not occur but for” subsidy — the central legal test for a TIF.

⚠️ Remember The Rock

Franklin residents have heard the “no risk to taxpayers” line before. When Ballpark Commons (The Rock) was first pitched, it came with the same rosy promises of strong revenue, zero risk, and developer-backed financing.

The reality was different. In December 2023, city records show ROC Ventures was invoiced:

• $87,314.68 for a “payment in lieu of taxes,” and

• $934,935.82 for a shortfall on debt service under the TID #5 agreement.

That’s more than $1,022,000 due in January 2024 — money that had to be covered because the tax increment underperformed. If the developer didn’t pay, Franklin taxpayers would have been on the hook.

The lesson is clear: optimistic TIF projections often don’t hold up. The Rock was sold as risk-free. It ended in shortfall payments. Now, residents are being asked to trust the same pitch for Poths General.

📆 Franklin’s TIF Track Record

• 2017–2018:

  Ballpark Commons (The Rock) approved under TID #5. Marketed as “no risk to taxpayers.”

• 2023:

  City invoices ROC Ventures more than $1,022,000 in shortfall payments (debt service + PILOT) because the increment underperformed.

• 2025 (October 7):

  Oakwood Industrial LLC (TID #8) requests to adjust its Guaranteed Assessed Value schedule (2025–2040) — effectively asking to reduce the minimum value it promised taxpayers.

• 2025 (September 30):

  Poths General developer pitches a new TIF as “no risk,” promising $2M+ in surplus revenue.

⚠️ Pattern: Every major Franklin TIF has been sold as risk-free. Within years, developers come back for bailouts or adjustments.

What Wisconsin Law Says About TIFs

Under Wis. Stat. §66.1105, a city can only create a TIF if:

• The property is “blighted” or in need of rehabilitation, or

• Development would not occur but for the TIF.

TIFs are meant as a last-resort tool when no private investment would otherwise happen.

Why Poths General fails the test:

• Orchard View is owned by Initech LLC, created in 2022 with its principal office at developer Jim Pekar’s home address.

• Land By Label is already moving the project forward — proof of private investment.

• Residents point to purposeful neglect (unkept buildings, deteriorating lots, tenants forced out early) as a manufactured “blight” narrative.

Politics on Display: Who Runs the Meeting, and Why

If the presentation itself raised eyebrows, the politics surrounding it raised more.

 of Alderman Salous, who represents the district, the meeting was called and run by Alderwoman Michelle Eichmann — from outside the district — with Mayor John Nelson presiding.

Salous held his own resident meeting on August 13, but without city backing: no mailers, no social media graphics, no official support. Residents went door-to-door to get the word out.

By contrast, Eichmann’s event came packaged with professionally designed graphics, a city social media campaign, and mailings. The mayor and several council members turned out as well as representatives from Land by Label, who were not present at Salous's meeting.

The contrast sends a clear message: city resources are being used to push Nelson’s allies’ agenda, while the district’s elected alderman is sidelined.

A Pattern of Favoritism and Misuse

This isn’t the first time Nelson’s administration has tilted the playing field:

• Allies like Danielle Kenney have amplified pro-developer talking points while dismissing legitimate citizen concerns.

• City-backed messaging has blurred the line between public information and private advocacy.

• The administration has consistently aligned itself with politically connected developers tied to figures like Steve Taylor and Mike Zimmerman, both of whom have surfaced in past Franklin development controversies.

Together, it paints a troubling picture: taxpayer-backed tools like TIF are being repackaged as “free money,” while political allies are rewarded with influence and control.

📑 Sidebar: The Planning Director Who Said “No”

Laurie Miller, Franklin’s former Planning Director, documented in detail how Mayor John Nelson pressured her and city staff to sidestep regulations, edit reports, and guarantee approvals for politically connected developers. Miller was later forced out of her position after resisting these directives.

• On the Carma project:

  “Planning Director Laurie Miller reported that Nelson and his administrator pressured staff to remove critical comments from the Carma Concept Review Report so the project would ‘have smooth passage.’ These edits followed private meetings Nelson held with Carma representatives without staff present.”

• On Awe’s Orchard:

  “Miller documented that Nelson directed staff to approve operations despite serious code violations, stating he could ‘guarantee the votes’ for approval. When staff objected, Nelson became hostile.”

• On other projects, including ROC Ventures, Land By Label, and Hiller Ford:

  “Nelson instructed staff that applicants ‘must be accommodated despite not meeting code or following procedures’ because they were ‘his partners’ or ‘voted for him.’”

• On guaranteeing outcomes:

  “Miller confirmed Nelson explicitly stated he could ‘guarantee the votes’ on contested projects, even when statutory approvals had not been met.”

Miller’s accounts provide a rare insider view of how political pressure from the mayor’s office warped Franklin’s development process — silencing professional planning staff and replacing public safeguards with private promises.

Call to Action: Time to Hold City Hall Accountable

Franklin residents cannot afford to sit on the sidelines. When taxpayer-backed financing tools like TIF are pitched with half-truths, when legal criteria are brushed aside, and when City Hall bends over backwards to support developers instead of the public, the result is not just bad policy — it’s corruption.

This October 9 Plan Commission meeting is not just about one project. It is about whether Franklin chooses transparency over backroom deals, whether our elected officials answer to residents or to their political allies, and whether tax dollars are used for the common good or leveraged for private gain.

If you believe Franklin deserves better, now is the moment to show up, speak out, and demand accountability

🗣️ Why You Should Show Up on Oct. 9

“This isn’t just about one project — it’s about whether Franklin’s leaders answer to residents or to their political allies. When City Hall bends the rules for developers, taxpayers lose. Show up, speak out, and demand accountability.”

📅 Plan Commission Public Hearing

📍 Franklin City Hall

🕡 Thursday, October 9, 6:30 p.m.

The Greater Good

At the end of the day, Franklin’s future should not be shaped by political favors, manufactured blight, or glossy sales pitches. It should be shaped by the people who live here — families who want safe neighborhoods, accountable government, and honest growth that doesn’t come at taxpayers’ expense. The greater good lies not in subsidizing connected developers, but in protecting the public’s trust. That trust can only be restored if residents demand fairness, transparency, and a city that serves all of us, not just a chosen few.

Franklin Community News will keep pressing for answers. We will not be silenced by political pressure. We will continue to investigate, expose, and report on corruption in Franklin. Please support us by liking our page on Facebook: Franklin Community News.