Editor’s note: This story has been updated to include additional information from the developer on the financing stack and construction team.
By Damakant Jayshi and Shereen Siewert
The developer for a highly anticipated downtown development said financing for the project is on track and groundbreaking will happen May 30 at the site of the former Wausau Center mall.
Terrence Wall, of Middleton-based T. Wall Enterprises, told Wausau Pilot & Review that loans have been secured and several will close after the property changes hands. Wall said the group has signed a loan commitment for the construction from One Community Bank and a Tax Increment Financing laon from Lake Ridge Bank both in Middleton. Several local Wausau banks are participating in the construction loan, he said.
After groundbreaking, the project will be on pause until the city finishes its environmental cleanup on the property, which Wausau is obligated to complete.
T. Wall Enterprises is the developer for the project and was chosen by property owner Wausau Opportunity Zone, Inc., which seeks to reinvigorate the city’s downtown with a series of developments including the apartment complex. City officials in 2023 hired a contractor to excavate the soils, but WOZ, under Chuck Ghidorzi’s direction, rejected site access, leaving the contaminated soil in place.
Under the terms of the current agreement, T. Wall has until June 1 to break ground on the project. With the deadline fast approaching, some alders on the Economic Development Committee this week said they want a guarantee that the funding is in place. Wall, in a phone call Wednesday, said the project is on track.
Stevens Construction will mobilize before May 31, with fencing, a job trailer and other essentials to ready the site, Wall said.
The Foundry on 3rd, estimated to cost about $45 million, relies on roughly $10.8 million in taxpayer subsidies. Under the agreement, the developer has until Nov. 1, 2025 to complete the project.
Dist. 3 Alder Terry Kilian on Tuesday asked specifically if the financing has been secured and was not satisfied with a reply from Ghidorzi that “there’s been a lot of progress on it.” Ghidorzi began by saying he couldn’t answer the question specifically for Nick Patterson, developmental analyst from T. Wall.
“We as a city need to know that it is in place,” Kilian said. When she asked if the information would be available before breaking ground for the redevelopment of former Wausau Center mall property, Ghidorzi said, “Absolutely.”
The Wausau City Council in October 2019 approved a proposal by WOZ to purchase the mall with $1.6 million in taxpayer-funded incentives that included a $1 million forgivable loan and transfer of city-owned assets to the LLC for $1. Those assets include the former Sears building, which the city purchased in 2017 for roughly $650,000.
Vicki Tierney, who represents Dist. 9 and was sworn in last month, said she would hesitate to move ahead on the project only to later discover that the developer has hit financial snags. She proposed that T. Wall would need to verify financing prior to breaking ground.
“It’s my feeling because of the delays that we’ve had with T. Wall that we must know that the financing is secured before groundbreaking,” Tierney said.
The design, by JLA Architects, includes 154 market-rate apartments and commercial space at the site of the former Wausau Center mall. Mr. Wall said REI Engineering is also involved in the project and some funding is coming from local lenders.
Wausau’s Economic Development Manager Randy Fifrick on Tuesday provided an update on the redevelopment project. Fifrick said that since it is an update, the staff cannot seek any actionable direction from the committee. However, he said that he would talk to the developer and have them provide an update at a future meeting.
During his update, Fifrick said that T. Wall and WOZ will have a closing plan later this week and are “on pace to meet their June 1 commencement date.”
Mayor Doug Diny did not respond to an email requesting comment and additional information.
