MILWAUKEE (CBS 58) — A vacant downtown Milwaukee office tower could be converted into 220 apartments under a $73.6 million redevelopment proposal supported by a new tax incremental financing district.

310W Wisconsin Rollup LLC, in partnership with Time Equities Inc., is proposing to convert vacant office space in the east tower of 310 W. Wisconsin Ave. into a mix of studio, one-, two- and three-bedroom units.

The proposal includes 50 workforce housing units for households earning between 70% and 90% of the area median income.

"We are focused on creating more opportunities for residents to find quality, affordable homes," Mayor Cavalier Johnson said. "This investment benefits Milwaukee's long-term economic health by expanding our tax base and ensuring our existing buildings contribute to the city's future."

The city is proposing Tax Incremental District No. 137 to help close the financing gap associated with converting the office space into housing.

The developer-financed district would provide up to $6.44 million over an 18-year term.

City officials said the project would put vacant and underused space back into productive use, bring additional residents downtown and increase the property's taxable value.

"This proposal represents an important investment in the continued growth of Downtown Milwaukee," District 4 Ald. Robert Bauman said. "This conversion will bring more residents Downtown, support local businesses, and further activate the neighborhood."

The Department of City Development is proposing the district under the city's tax incremental financing guidelines for housing developments. The guidelines prioritize projects that create affordable and workforce housing and convert underused downtown office buildings into residential properties.

"We're excited to see continued investment in affordable places to live for Milwaukee residents, especially during this Year of Housing," DCD Commissioner Lafayette Crump said.

Time Equities acquired the office building nearly nine years ago and has invested more than $30 million into the property, according to Brad Gordon, the company's director of acquisitions.

Gordon said the company initially planned to reposition the building as office space, but the COVID-19 pandemic changed demand.

"Over the past four years, [we] worked to advance a plan to convert the East Tower into residential apartments," Gordon said. "Through the city's Tax Incremental Financing program supporting office-to-residential conversions, and in partnership with the city, this project will deliver 220 new apartments, including 50 workforce housing units, while bringing much-needed housing and new economic activity to downtown Milwaukee."

The Redevelopment Authority of the City of Milwaukee is scheduled to review the proposed district Aug. 20.