Correction: This version of the story corrects an error that stated Liz Brodek received notification of issues with the application on Nov. 6. The correct date is Dec. 6, 2023. Wausau Pilot regrets the error.

Damakant Jayshi and Shereen Siewert

Wausau’s Economic Development Committee on Thursday approved seeking proposals to build single-family homes on vacant city-owned parcels, including several on Thomas Street. The matter now goes to the City Council.

Prior to Thursday, the agenda listed only parcels on Bridge Street and Jefferson Street for the infill project, which was approved last March. The Thomas Street parcels were omitted, raising alarm bells for Dist. 3 Alder Tom Kilian and some residents in the community. On Monday, Development Director Liz Brodek told Wausau Pilot & Review that the city opted to pursue other lots “with fewer barriers.”

Brodek changed course on Thursday and asked that the Thomas Street parcels be added back into the mix of infill lots for the project, which relies on American Rescue Plan Act funding,

“It is appropriate to add Thomas Street to this request for bids,” Brodek told the committee. “The lack of clarity of inclusion of Thomas St. is causing some confusion and issues. We want to be able to develop Thomas Street.”

The Thomas Street lots are in limbo because the city is waiting for the results of a grant application from the Wisconsin Department of Natural Resources. The Wisconsin Assessment Monies, or WAM, grant would assist in assessing the Thomas Street properties assessing environmental contamination on the parcels, which lie in an area with previously identified issues.

“We don’t want to move forward with development on those lots until we know they are clean, and if they are not, there’s a separate grant application called Ready for Reuse application that we can apply for to clean up those parcels and make them ready for development.” Ready for Reuse loans and grants are state funding used for cleanup of hazardous substances at brownfields and other hazardous sites throughout the state.

ARPA funding for the projects must be committed by the end of 2024. Brodek on Thursday said the city has a very specific deadline for ARPA funds commitment, but “we don’t have a WAM application timeline that we can really be certain of.”

The WAM application was submitted in July 2024 but was incomplete. On Dec. 6, Brodek was notified that an access agreement was missing from Wausau’s materials and a box asking a qualifying question about the property was left unchecked.

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.

DNR officials confirmed to Wausau Pilot that the missing information did not hold up the process. Gena Larson of the DNR, in an email, said a decision should be made by the end of March or early April, just weeks away.

Brodek said she had not expected the time that the state agency would need in making its decision.

The committee’s discussion was dominated by the condition of the lots on Thomas Street and where and how the city faltered in moving quickly to build affordable housing in the city. Ultimately the decision was unanimous.

The lots on Thomas Street need clearance from the Wisconsin Department of Natural Resources because a variety of contaminants are believed to be there and need a cleanup before their reuse.

A significant portion of the debate at the ED Committee on Thursday was focused on whether the city should move ahead with any of the projects that become “shovel ready” or only move ahead after the determination on the Thomas Street parcels become clear.

Alder Kilian, who represents a large portion of the Thomas Street neighborhood, said the city has betrayed the trust of the people in the past.

“It would be very premature and inappropriate to deviate from what we have already told the public,” he said, adding that the city must be transparent in its communication with residents about any changes necessary.

Kilian acknowledged that the DNR decision and federal agency signoff could take time and there may indeed need to be a change of plans “but I think we are far from that point right now,” he said.

Sarah Watson pushed back on that idea.

“I am not comfortable putting a stop on projects,” she said. “I understand that you feel that [Thomas Street] should be a priority, like No. 1 before all else but I think they can be done all together.”

Alder Lisa Rasmussen agreed with Watson, saying they should move ahead with projects that are “shovel ready” because of the spend down timeline they are facing.

“With infill housing, it’s been our goal in this committee all along to prioritize the remnants that were left on Thomas St. that used to have affordable homes on them that they still get those,” Rasmussen said, while adding that affordable housing in all different areas of the city is a demonstrated need.

But she too acknowledged that there are trust issues when it comes to Thomas St. neighborhoods.

If the city does not commit the ARPA funds by August, Rasmussen said, they might have “to reshuffle the deck.” The city needs to start some affordable housing projects before the year ends “because none of us are interested in sending money back to Washington.”