By Shereen Siewert

City leaders on Tuesday heard proposals from four companies interested in providing affordable housing developments in Wausau, but held off on making a final recommendation for the council.

The group did enter into closed session after hearing from all four developers, but held off on a decision to allow more time for public input. Information on each proposal was only released late Monday afternoon, leaving little more than a day for public review. The meeting ended after a brisk discussion on transparency and public participation and a back-and-forth between Dist. 3 Alder Tom Kilian and Development Director Liz Brodek on potential plans, so far kept from Kilian and the public, for Thomas Street properties.

For the property at 700 Grand Ave., all four proposals centered on affordable housing developments in response to the city’s request for proposals. The city acquired the property in 1997 for the purpose of making a right of way or turn lane from Thomas Street or Grand Avenue, a plan that did not come to fruition. In 2019, then-Mayor Robert Mielke authorized planting fruit trees on the property as a therapeutic horticulture initiative that aimed to use the practice of community gardening to provide stress relief, as well as emotional and social therapy. A group of seven jail inmates planted the trees at what is known as Gaining Ground Gardens.

Commonweath Development Corp. of America, out of Middleton, proposes a four-story, 50-unit building with one, two and three-bedroom lots to accommodate both single individuals and families with younger children. Under the Commonwealth plan, monthly rent would range from $493 to $1,298 depending on the size of the apartment and income levels. The group seeks to purchase the land for $1 and receive $1.5 million from the city to assist in funding the roughly $16.5 million project.

Horizon Development Group and Northernstar Companies propose a three-story, 49-unit development, also with one, two and three-bedroom units. Of those, 41 would be income restricted, while eight would be market rate apartments. During Tuesday’s meeting, Horizon Principal Scott Kwiecinski said the plan could shift to ensure all apartments are deemed affordable, rather than having a portion of market rate units, if the city desired.

Kwiecinski, in his presentation, referred to 2021 data that show the area has roughly 70,000 jobs, but only about 60,000 housing units, demonstrating a housing gap that such a project could help fill. The Horizon/Northernstar plan, which is unique in its underground resident parking design, seeks $3.5 million in ARPA funding and $800,000 in Tax Increment Financing for the roughly $13.2 million project. The group would purchase the property from Wausau for $245,000.

Rent levels for the Thomas Pointe Apartments would be set between $400 and $1,o75 per month, with market rate apartments from $950 to $1,200 per month. The housing community would not be age-restricted, and developers would sign a 30-year land use restriction agreement to ensure that affordable units remain for the duration.

General Capital Group and Danna Capital are proposing a four-story, 50-unit housing development with apartments and townhouses. The project will also have one, two and three bedroom units. The group proposes purchasing the parcel for $175,000 and relies on $1.425 million in Tax Increment Financing. The Capital design does not have basement storage or underground parking, though the group’s representatives said that could change depending on the city’s wishes.

Gorman & Company, a gropu that has completed three major projects in Wausau in recent years, proposes a 50-unit affordable housing development specifically for seniors. The project would include 39 one-bedroom and 11 two-bedroom units.Trent Claybaugh, the organization’s development manager, told the group that the project would complement the Landmark renovation currently underway, which will provide roughly 100 income-restricted apartments, and a project they continue to work through for the former West Side Battery property on First Avenue.

Dist. 7 Alder Lisa Rasmussen responded to Gorman’s proposal by saying she was “stymied by the age restriction,” noting that significant housing gaps exist among a range of demographics in Wausau.

Claybaugh said they based that decision on data that show a zero percent vacancy rate for affordable senior housing, but said his company would be open to relax that assumption if necessary. Under the Gorman plan, monthly rent would range from $435 to $1,055 depending on income.

To complete the $14.25 million project, the developers are seeking federal and state tax credits, funding from the FHLB Chicago Affordable Housing Fund and two mortgages. There is an identified gap in financing of about $1.7 million, which would entail some type of city participation, from Tax Increment Financing, HOME funds, ARPA funds or a combination of those elements, according to the proposal.

Economic Development Manager Randy Fifrick told the Economic Development Committee he was gratified to see four great proposals for Wausau’s plan, making a choice between the four difficult. Staff reviewed each proposal and ranked them based on criteria contained in the RFP, but have not shared those rankings publicly.

Call for transparency

All four developers vowed to work with local contractors when possible and involve the community in discussions about plans moving forward, which Dist. 3 Alder Tom Kilian applauded. Kilian has often criticized city officials for a lack of transparency in such discussions, a theme that re-emerged later in Tuesday’s meeting when Development Director Liz Brodek mentioned vague plans under discussion for Thomas Street properties.

Brodek said she didn’t want to share “half baked” plans with the public but said there has been “an interesting conversation” that is “interesting enough to keep looking at it,” but she declined to define what “it” meant, even when pressed by Kilian, who represents residents in that area.

Kilian said he requested a summary on the nature of what was being planned or potentially planned for parcels along Thomas Street and the response he had gotten as an alderperson was essentially that he would not be given that information.

“Barring something that’s truly confidential legally and so forth when an alderperson asks for information about his or her district the appropriate answer is not ‘no,'” Kilian said.

That lack of transparency, he said, does a disservice to the public.

Kilian reminded Brodek that there had in the past been robust participation by residents in the Thomas Street neighborhood who expressed a strong desire for single-family homes on the remnant parcels left vacant through a road reconstruction plan – and yet, with ARPA dollars available now to make that desire a reality – no such efforts have been made. The city is proposing an infill project to build single family homes on properties owned by Wausau, but the Thomas Street properties did not appear to be considered.

Rasmussen said she previously proposed that Kilian’s district be considered for at least three of those single-family home infill projects. If any of what’s being proposed for the area is a high density project, that would be a fail – because residents in the neighborhood do not want that, she said.

The Thomas Street properties, Rasmussen said, are green and clean and ready for building, unlike some of the other properties being considered for infill.

“I don’t know what’s in the works, but I guess compared to three single-family homes that would be $150,00o0, it better be good,” Rasmussen said.

Brodek said the best she can offer is to bring the information back to a future meeting because she doesn’t have a number for an ARPA funding request for it or a budget for feasibility “to determine if this even works,” again declining to define the “discussions” underway.

Meanwhile, the Economic Development Committee will hold a special meeting on Oct. 17 to select one of the projects. Rasmussen said she hopes that for the proposers who are not selected for the Grand Avenue project, staff will continue to work with the others for a variety of affordable projects.

“I think we have enough demand for the affordable housing that we should look to do additional projects, while we’re working on the market rate stuff in parallel,” Rasmussen said.

Shereen Siewert is the editor and publisher of Wausau Pilot & Review. Contact her at [email protected]. Follow on Twitter at https://www.twitter.com/shereensiewert