Damakant Jayshi

Several Wausau City Council members are expressing concern about delays in the former mall’s redevelopment and grilled project representatives after receiving an update this week.

But Chuck Ghidorzi, president and CEO of Ghidorzi Construction Company and Managing Director for WOZ Inc., Dave Eckmann of WOZ Inc. and president and CEO of the Greater Wausau Chamber of Commerce, and Terence Wall and Nick Patterson of T. Wall denied there is any inordinate delay and insists the project is moving ahead.

In September, city officials approved an agreement for The Foundry on 3rd, which will create 154 market-rate apartments and commercial space at the site of the former Wausau Center mall. Madison-based developer T. Wall Enterprises is the registered agent for the project, which at the time of approval relied on $10.8 million in public assistance including $6 million in principal.

Wall went so far as to say the project is progressing at a “rapid pace.”

Alder and Common Council President Becky McElhaney referred to a letter written by Eckman to council members in which he announced a delay in the project when asking Patterson about the “changing dynamics” of the project. She also asked whether lenders have been identified.

In his June 12 email, Eckmann said the project is delayed due to the “increased cost of construction materials” and “escalating interest rates.” He also cited “extended time investors require to make decisions” on the project, which was set to break ground in August but is now delayed until spring.

Patterson said the group is in talks with lenders and seeking the best rates. And at one point, he said construction will begin in the spring.

“So there won’t be any further delay? Asked McElhaney. “What will cause any further delay beyond the spring of 2024?”

Patterson said there is a great deal of economic uncertainty, that interest rates are climbing and that there are a lot of moving targets. He also addressed a question by Dist. 3 Alder Tom Kilian saying he does not expect interest rates to decrease, and also claims to have a pool of 700 investors.

Alder Lou Larson told Patterson that the developers’ efforts have led to a “whole lot of nothing” and that he has no faith in them. He also questioned the likelihood of a loan without equity.

Larson also asked Ghidorzi why he or his constituents of Dist. 10 should support them given the delay. Ghidorzi said “this is a community issue that we are trying to move forward,” when Larson said he had not answered his question.

Alder Doug Diny read part of Wausau’s strategic plan and said the mall redevelopment is central to the city’s development, a critical and important project. He said the citizens and the council deserve to know what is causing the project delay.

Diny also asked Patterson why the group could not take possession of the lot prior to Labor Day to show their intent and reassure the city that they are serious about the project. Patterson replied by saying the group is going through all necessary steps, but Diny pressed on, pointing out that the agreement was completed nearly a year ago, in August 2022, and acquiring the lot is the simplest, easiest and least expensive way to show T. Wall’s intent and dedication.

“So let’s not make this into a normal piece of property or normal piece of project management,” Diny said. “This is a high priority project you took it on and we agreed to the timeline.”

Wall, who attended virtually, responded to the alders’ questions after Mayor Katie Rosenberg gave him time to speak. Denying a delay, he said “people who are not involved in development don’t understand the process.” Wall asked if the alders were suggesting the developers should circumvent Wausau’s rules since they are trying to comply with all the requirements of the city’s ordinance.

He also responded to Diny’s question of whether the group will ask for additional financial consideration to complete the project by categorically saying “no.”

Kilian asked Patterson why T. Wall failed to tell the city they had no private dollars secured when the City Council voted on the project and committed $10.8 million. But Patterson denied the charge, pointing to the group’s pool of investors.

Compliance with open meetings law raised

Even before the presentation began, Alder Diny raised questions about the council’s role in the meeting and asked for a more robust discussion.

But City Attorney Anne Jacobson, parliamentarian for the council meeting, said she was concerned about compliance with the open meetings law since the item was a presentation and an update and not agendized for discussion or action. Mayor Rosenberg, as chair of the meeting, sided with her. After Diny appealed that ruling, a vote was taken and Diny’s appeal lost.

Later, Alder Kilian said he disagreed with the city attorney’s opinion that open meetings law required that discussions be agendized.

Diny’s attempt to speak was interrupted on at least two other occasions when Alders McElhaney and later Lisa Rasmussen raised points of order. Both said Diny was discussing an item not on the agenda. Rasmussen said he was trying to renegotiate the development agreement through question-answer session.

Mayor Katie Rosenberg said she understood there is concern and asked the developers if they could assure the community that they are making progress

“How can you assure us that this delay is one delay and we are good to move forward?” she asked.

Patterson responded by saying they have made a tremendous amount of investment as well as staff time for over a year in the project.

“We are fully on board and we 95% to the finish line.”