When the Market Can Build, Why Subsidies? — Aldi’s Entry Tests Franklin’s Politics of Development

By Dr. Richard Busalacchi, Franklin Community News 

Franklin’s newest development may be small in footprint but large in meaning.

A new Aldi grocery store, planned for the corner of Highway 100 and Church Street, is rising on land that has sat vacant for years. What makes this project remarkable isn’t just the store — it’s the financing. Aldi is building without a Tax Incremental District (TID), breaking a decade-long pattern in which most Franklin projects required public subsidy to move forward.

In a city long accustomed to “no TID, no project,” Aldi’s privately funded investment challenges the belief that Franklin’s growth must always be subsidized.

🏪 Aldi’s Quiet Confidence and Market Impact

Aldi isn’t just another grocery store — it’s a disciplined, high-efficiency retailer with a proven global model.

Founded in post-war Germany and now operating more than 12,000 stores worldwide, including over 2,500 in the U.S., Aldi relies on a lean formula: limited SKUs, minimal staff, and tight logistics. The company typically owns its own real estate, manages its construction and supply chain, and keeps prices low by avoiding middlemen.

With 2024 global revenues exceeding $150 billion, Aldi has the financial muscle to build without incentives.

Few residents realize that Aldi Nord, one half of the Aldi family, owns Trader Joe’s — giving the group dominance across both discount and boutique grocery niches.

In the U.S., Aldi consistently ranks among the top five grocers by profit per square foot, ahead of traditional chains like Kroger parent of Pick N Save and Safeway. Its model is fast, focused, and self-reliant — no ribbon cuttings, no city subsidies, just execution.

🏬 What It Means for Franklin’s Pick ’n Save (Kroger)

Franklin’s Pick ’n Save, owned by Kroger, represents the opposite end of the grocery spectrum: large stores, broad product variety, and high operating costs. Aldi’s arrival at Highway 100 could shake up the local balance:

1. Price Competition: Aldi’s low-cost structure pressures Kroger to cut margins and offer deeper promotions.

2. Customer Flow: Aldi’s quick-trip model draws value-seeking shoppers away from weekly full-cart trips.

3. Market Segmentation: Pick ’n Save retains shoppers who value service and selection; Aldi attracts those focused on essentials and savings.

4. Operational Response: Kroger may need to retool pricing, assortments, and loyalty programs to protect market share.

For Franklin’s consumers, this competition means choice — and proof that economic growth doesn’t require City Hall to cut checks.

Title: Retail Landscape Around Planned Aldi on Hwy 100 & Church St, Franklin

This map highlights the planned Aldi location at the corner of Highway 100 and Church Street in Franklin, Wisconsin. It situates the site among major nearby retailers:

• Menards at 10925 W Speedway Dr

• Pick ’n Save at 7201 S 76th St

• Pick ’n Save at 7780 S Lovers Lane Rd

• Target at 7800 S Lovers Lane Rd

Major roadways — Hwy 100, Church Street, 76th Street, and Lovers Lane Rd — are labeled to show the commercial corridor’s connectivity.

💸 Meanwhile, Developers Wait for the City to Pay

Across town, the Poths General Development proposal remains unapproved but looms as a major test of Franklin’s fiscal philosophy. The plan near Rawson Avenue and 76th Street envisions a mix of retail pads, multifamily housing, and office space — attractive infill development in a prime corridor.

Yet the developer continues exploring TID reimbursements for infrastructure, arguing private financing won’t “pencil.” It’s a familiar refrain — when in doubt, ask the taxpayers.

Then on October 7, 2025, Arden Property Group appeared before the Common Council to pitch its own mixed-use project — also tethered to a TID request. Together, Poths and Arden reveal a city still split between market confidence and subsidy dependence.

🧩 Sidebar: What Is a TID (or TIF)?

A Tax Incremental District (TID) — or Tax Increment Financing (TIF) — allows a city to fund infrastructure by using future tax growth from a designated area.

When created, the property’s tax base is “frozen.” Any new tax revenue pays for district costs instead of Franklin Schools, Milwaukee County, MATC.

Supporters call it “self-financing.” Critics call it a hidden subsidy that locks up public money for decades.

📜 State Law: What Wisconsin Requires for a TID

Under Wis. Stat. § 66.1105, a TID must meet five criteria:

1. Public Purpose: It must serve a civic need like blight removal or infrastructure improvement.

2. “But For” Test: The Joint Review Board must confirm the project wouldn’t happen but for the subsidy.

3. Base Value Certification: The Department of Revenue must certify the starting tax base.

4. Project Plan & Term: Each TID requires a detailed, adopted plan, and most expire within 20–43 years.

5. Annual Review: Cities must publish annual financial reports and hold public meetings.

Franklin’s willingness to extend TIDs for projects already underway undermines this “but for” test — and taxpayer trust.

🏙️ Franklin’s Long Reliance on TIDs

The Ballpark Commons / Rock Sports Complex originated under TID #5 (2016), followed by TID #6 (Strauss/Bear area) and TID #7 (Velo Village). Each diverted future tax revenues for decades.

Supporters credit these projects with job creation; critics argue they postpone fiscal balance.

Aldi’s unsubsidized project challenges that assumption, proving Franklin’s fundamentals — traffic, demographics, and location — are strong enough to draw investment without city guarantees.

⚖️ A Turning Point for City Leadership

City Hall now faces a defining choice: keep treating subsidies as the default, or embrace a new era of market-driven growth.

Aldi’s build demonstrates a core truth — when government provides consistency, not cash, investment follows. Franklin’s economic future depends less on how much the city spends and more on whether it can manage fairly and predictably.

Mayor John Nelson and the Common Council must decide whether Franklin will remain a developer-dependent city or mature into a self-sustaining community.

Leadership means discipline — not saying “yes” to every deal, but standing by clear rules and public purpose.

🧾 A Pattern of Irregularities

Former Planning Manager Laurie Miller alleged in 2025 that Mayor Nelson and Director of Administration Kelly Hersh bypassed standard review procedures for politically favored projects, including Carmex, Hiller Ford, and Awe’s Apple Orchard.

Internal emails obtained by FCNewsWI show Miller raised repeated concerns before being terminated.

In one message, Nelson allegedly told her, “I have the votes.” In another, “They voted for me.”

To Miller, these remarks reflected a pattern where politics — not zoning law — determined outcomes.

🏗️ The Arden Proposal: Franklin’s Next TID Debate

The Arden Property Group proposal, presented on October 7, 2025, envisions 30 acres of “Class A” 55+ housing, apartments, and retail along West Loomis and St. Martins Road.

“This is why we need the TID,” the developer said. “We want to do a Class A project, but we’ve been unwilling to invest without support from the city.”

Despite 99% occupancy at its nearby property, Arden insists it cannot move forward without public funding — the very scenario Wisconsin’s “but for” test was designed to prevent.

🌆 Poths General: Franklin’s Litmus Test for Fair Growth

Poths General Development at Rawson & 76th may be Franklin’s most revealing case yet.

The project combines retail, housing, and office space — precisely the type of mixed-use corridor the city claims to want.

Yet early drafts show calls for TID assistance to cover infrastructure. Insiders say whether the city grants it will signal if Franklin has truly learned from Aldi’s example or reverts to old habits.

🏡 Community Voices: What Residents Are Saying

The Aldi site lies in Alderwoman Michelle Eichmann’s district, where residents are already asking questions.

On local Facebook pages and neighborhood forums, commenters have voiced curiosity — and skepticism:

“Is the lot even big enough for an Aldi?”

“Are they clearing all those trees?”

“What happens to traffic on Highway 100?”

The parcel totals roughly 2½–3 acres, tight but feasible for Aldi’s 18,000–22,000 sq ft prototype.

According to WisDOT, traffic volumes exceed 20,000 vehicles per day, meeting Aldi’s threshold for viability.

Some neighbors welcome competition, while others worry about visual impact and congestion.

Under Franklin’s new Unified Development Ordinance, a Type 2 or 3 landscape buffer is required between commercial and residential zones — enforcement that will test whether city staff apply rules evenly, not politically.

For residents, the Aldi project has become a referendum on credibility as much as commerce.

🌱 The Greater Good: What Aldi Proves — and What Franklin Must Learn

Aldi’s arrival isn’t merely a win for shoppers; it’s proof that Franklin’s fundamentals still work when politics step aside.

While some officials insist no project can move without subsidies, Aldi quietly disproved that myth. It built on merit, not influence.

Franklin doesn’t need a City Hall that functions as a developer’s bank. It needs leaders who believe in rules, transparency, and equal treatment for all investors — large or small, favored or not.

Mayor Nelson and Alderwoman Eichmann have an opportunity to reset Franklin’s priorities. Whether they will take it remains to be seen.

Because real leadership isn’t about who “has the votes.” It’s about what serves the greater good — a fair market, a trusted government, and a city confident enough to let its success stand on its own.

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.