Wausau Thomas Street housing project in limbo

Editor’s note: This story has been edited to add information from the DNR, that a decision on the grant involving the Thomas Street project is expected in late March or early April.

By Shereen Siewert | Wausau Pilot & Review

A plan to build affordable single-family homes on remnant parcels on Thomas Street could be the latest Wausau project to fall by the wayside, with priorities shifting to other vacant lots.

The infill project, which relies on American Rescue Plan Act funding, was met with significant enthusiasm from residents in the neighborhood, many of whom continue to lament the loss of single-family homes when Thomas Street was reconstructed. Dist. 3 Alder Tom Kilian, who represents a swath of the neighborhood, was visibly emotional during a March Economic Development Committee meeting in which the project was first discussed and said he saw it as a positive development for residents who have historically been marginalized.

But this week, the Economic Development Committee will instead consider parcels on Bridge Street and Jefferson Street instead of the Thomas Street properties, which had been prioritized by the City Council last year. The issue, city leaders say, is timing.

During last week’s Finance Committee meeting, Dist. 7 Alder Lisa Rasmussen emphasized that decisions need to be made soon to accommodate federal deadlines and avoid returning unused funds to the federal government.

Under federal rules, ARPA funds must be committed by the end of 2024, which means contracts must be in place this year, though construction would not need to be completed until the end of 2026.

“The last thing we want to do is return our ARPA funds to Washington,” Rasmussen said.

Wausau Development Director Liz Brodek told Wausau Pilot that the Thomas Street project depends on a Wisconsin Assessment Monies grant from the Wisconsin Dept. of Natural Resources. That grant would allow the city to test for a variety of contaminants on the proposed lots, which are located near areas that have demonstrated contamination stemming from decades of nearby manufacturing operations. The grant was submitted in July, but no determination has yet been made.

“Because the WAM grant is still undetermined, and in consultation with other staff, we decided to pursue development of affordable housing on City-owned lots with fewer barriers,” Brodek said. “There is still a great need for affordable housing, and these lots on Jefferson and Bridge allow for a faster construction timeline.”

The Thomas Street properties have been omitted from the list of properties under consideration during this week’s Economic Development Committee meeting. The meeting, which had been set for Tuesday, has been shifted to Thursday at 5:15 p.m. See the meeting packet below.

The omission is not sitting well with Kilian, who spoke during last week’s Finance Committee meeting urging the project plans not to shift away from Thomas Street. Kilian said DNR officials suggested decisions would be made in February or March, and asked that the city allow enough time for the DNR’s response to be determined before prematurely moving onto different locations.

The city’s application was submitted in July, but on Nov. 6 Brodek received word from the DNR that an access agreement was missing from Wausau’s materials and that a box asking a crucial question about the property was left unchecked on the application. Brodek said she followed up on Dec. 12 resubmitting the access agreement and informing the DNR that the box could be checked.

But the DNR on Feb. 12 said the form needed to be resubmitted with the actual box checked, not just an email directing the DNR to do so – and the corrected form was resent on Feb. 14. Brodek said the DNR informed her that the missing information did not hold up the process.

Gena Larson, of the DNR, told Wausau Pilot the application is complete and a decision is expected at the end of March or early April.

Dist. 4 Alder Doug Diny asked last week if there was a drop-dead date by which the city would need to have an answer on the grant in order to move forward with the Thomas Street parcels. But the answer to that question is unclear.

Though the properties are not listed, Brodek insists the city is not giving up on Thomas Street, which she said remains a top priority.

“Butt we can’t let the WAM grant determination delay jeopardize creation of affordable housing using our ARPA allocation,” Brodek said. “I am very invested in seeing that project through, and we hope to receive a positive determination on our WAM application soon. Between the ARPA fund timelines and continued need for affordable housing, we are doing what we can to move the needle.”