By Damakant Jayshi and Shereen Siewert
Plans for a 56-unit affordable housing project are moving forward after two Wausau committees on Tuesday approval a development agreement on city-owned parcels in the former West Side Battery location.
The purchase and development agreement with Gorman & Company, LLC and Riverview Lofts Wausau, LLC, calls for a 17-month construction timeline beginning in mid-July. Leasing is expected to begin as early as 2026, Ted Matkom, Wisconsin Market president and General Counsel for developer Gorman & Company said this week.
The project, which is expected to generate roughly $2.23 million in annual tax revenue base, was marked with delays due to challenges related to gap financing. Matkom said the city and Gorman & Company worked together to get $1.75M in American Rescue Act Funding which the company initially thought was sufficient. Costs later rose due to inflation, but the company is now on track to meet the timeline.
Project plans for the property, at 415 S. First Ave. and 401 S. First Ave., have twice been nixed since Wausau acquired the land. Wausau in September 2016 purchased the West Side Battery property for $200,000 using a loan made by the Judd S. Alexander Foundation. The adjoining parcel, the former home of L&S Printing, was sold to the city in 2014 for $190,000, also with a loan from the Judd S. Alexander Foundation. The $390,000 properties are now considered a single parcel for development purposes.
Gorman’s proposal was chosen over a competing idea from Wausau Opportunity Zone, Inc., after a discussion that centered in part on the selling price for the land. WOZ had asked the city to give the land away, while Gorman offered to pay for it. That distinction played a role in some council members’ votes. The City Council formally awarded the housing complex project to Gorman & Co. in December 2021.
Now, Gorman & Co. will be buying the land for $1 after all.
On Tuesday, Dist. 3 Alder Tom Kilian praised the project as positive, citing the need for truly affordable housing in the city. However, Kilian said he would vote against the project due to his long-standing commitment to oppose the sale of any city-owned property for $1.
Kilian asked whether Gorman would have paid market rates for the parcel had the city not sold the property for $1. Matkom explained that the developer’s application for tax credits through an affordable housing program administered by the Federal Home Loan Bank of Chicago would not have become competitive in that case. He said if the city “donates” the land, the application is scored with additional five points. Without that one dollar price, they wouldn’t be discussing the project on Tuesday, the company’s general counsel added.
Kilian acknowledged the scoring requirements for an application for gap financing grant, noting the extraordinary circumstances. “I hope this passes tonight but I hope the city revisits the sale of city-owned property for a dollar.”
Gorman & Co., LLC is the same group that recently completed a $20 million historic rehabilitation of the Landmark Apartments in downtown Wausau. Initial plans showed the four-story housing project, when complete, will feature income-restricted apartments with monthly rent starting at $375.
During the vote, the Finance Committee approved the purchase and development agreement unanimously but the Economic Development vote was 4-1, with Kilian voting against it.
