Damakant Jayshi

The Wausau City Council on Tuesday terminated the $5 million Riverlife condominium project on the city’s east riverfront.

The project was marred by delays, extended deadlines and three amendments during which the scale and scope of the original project was whittled down, said city alders. The group endorsed an earlier recommendation from the Economic Development Committee to terminate the project agreement, spearheaded by Riverlife Condos, LLC.

“We had given them three extensions and every time they would come back for an extension, not only there was an extension but elements of the plan were getting smaller,” said Alder Lisa Rasmussen. “There were fewer units, there was no amphitheater.”

She also said the developers responded to the city’s questions and communications only on the last possible day of the deadline.

Rasmussen said the committee felt that despite waiting for months for the agreement to come to fruition and the land sale could close, nothing of the sort took place.

“We started to lose faith that they could bring this fruition as proposed in a timely manner,” she said.

The committee’s decision came after Mitch Viegut of Riverlife Condos, LLC was issued a letter of default on Nov. 2, giving the developer a 30-day curing window. That deadline ended on Dec. 2, with Riverlife Condos, LLC failing to address the default, Wausau Economic Development Manager Randy Fifrick told the committee members last week.

In the Nov. 2 letter Quarles & Brady, LLP, a law firm contracted by the city, told the developer that the project was at risk of termination. The letter is attached on page 92 of the Economic Development Committee meeting packet.

Rasmussen this week said the development group sold the council on the project on the basis of their local ties, the public gathering space in the initial plans and the number of condos being built.

Community Development Director Liz Brodek said the group can submit another plan after Wausau issues a new request for proposals.

Alder Doug Diny asked whether the developer had been willing to “cure” the default and whether the city could reconsider its decision. The November letter to Viegut, which was available in meeting packets, did spell out a deadline to cure the default

Brodek said the developer and their attorneys responded to seek a new timeline for closing but the ED Committee had made a decision Dec. 6 to terminate the project. Brodek said Viegut wrote back after the ED Committee meeting that they would be in touch.

Mayor Katie Rosenberg said her understanding was that the committee wanted the city to tell the developer that the agreement would be terminated and the city wanted to move on. She also said the developers could respond to an RFP.

Rasmussen said the city is willing to look at future plans from the developer but now, their patience has run out.

“Time for waiting, giving extensions is over,” she said. “I think we need to be done.”

The vote to terminate the agreement was unanimous, at 9-0. Alders Carol Lukens and Sarah Watson were absent.