Damakant Jayshi
City leaders on Tuesday approved the sale of space at the former Wausau Chemical building to redevelop as a public indoor green space after a robust debate over its sale price.
The City Council approved the sale by a vote of 6-3, with Alders Gary Gisselman, of Dist. 5; Doug Diny, of Dist. 4 and Tom Kilian, of Dist. 3 voting against. Two alders, Sarah Watson and Dawn Herbst, alders representing Dist. 7 and 9, were absent. Kilian had voted in favor of the proposal last Tuesday at the Economic Development Committee meeting.
The proposal for the business was made by Mathew and Kristen Aschbrenner, of Asch Properties, LLC. They have proposed a purchase price of $40,000 and plan to invest $250,000 of their own. They are also not seeking any financial help from the city. “Our proposed business, ‘Infused’, will procure and supply produce, beverages, crafted oils, syrups, bitters and garnishes in an aesthetically pleasing and environmentally sustainable space,” Aschbrenner told the Economic Development Committee last week.
Both Gisselman and Diny opposed the sale of the property for $40,000, saying the price is far below the actual value. This 0.89-acre parcel is the smaller of the two representing the former Wausau Chemical buildings at 180 East Wausau Ave. The two alders suggested the property could be worth more than $300,000, given the sale of a nearby property.
Gisselman pointed out that the city has already spent a lot of money at the former Wausau Chemical site and the city should try to recoup some of the money it has spent. The amount of $40,000 is a “mere pittance,” he added.
Diny agreed, saying that although he liked the proposed project, the value could be much more than $40,000. He suggested the council explain the trend of “buy high, sell low that we have” while adding that the value of the entire Wausau Chemical property could range from $7.4 million to $9 million. Even though the city has not been asked to fund the redevelopment, “I would call it a $200,000 forgivable loan,” Diny said, while also calling for transparency from the city.
Diny suggested renegotiating the sale. Later, he asked what would prevent the developer from selling the property soon after buying it.
But Common Council President and Dist. 6 Alder Becky McElhaney opposed her colleagues’ position, by saying the last assessment of the property in 2019 put the value at $37,500 and the city received a proposal at $40,000 at that point. McElhaney added that they could reassess the value “but let’s not throw out numbers” and second-guess the actual value.
Mayor Katie Rosenberg confirmed that the property was assessed at $37,500. She also said this was a policy decision before the council, whose members can decide on the matter however they see fit.
But City Assessor Richard Rubow later told the council he found the last assessed value in 2019 after a quick search. The assessment at that point was $382,000, before the property changed hands to city ownership.
Support for the proposal remained strong.
Lisa Rasmussen, alder representing Dict. 7, agreed with McElhaney and said the proposal was neither a forgivable loan, nor was the city paying anything for the redevelopment.
Dist. 11 Alder Chad Henke also opposed asking for more money for the property.
Wausau Economic Development Manager Randy Fifrick said the city will impose certain conditions for the redevelopment.
“There will be some provisions that they just can’t flip it to the next person within the next day,” Fifrick said.
City Attorney Anne Jacobson agreed with Fifrick’s assessment.
“With the passing of this resolution, the way it is drafted, we’ll send city staff out to begin negotiations for the sale of that property at the price they proposed unless somebody adds something to the motion that they want some restrictions placed on that,” Jacobson said. Final sale conditions will be brought back to Finance and Economic Development committees for approval.
Replying to Dist. 10 Alder Lou Larson’s concerns about groundwater contamination at the site, Fifric said there was no risk of that given the way the project has been designed. Kilian suggested that environmental safeguards should be included in the proposal.
Mayor Rosenberg clarified that at this point the city was considering a land sale, not a redevelopment agreement requiring taxpayer incentives.
