Mayor's Community Update - 08/17/19
Greetings! At the August 13, 2019 meeting of the Common Council, the Council approved terms of an agreement on an option to purchase the Laird Museum, located at 520 McKinley Street, from the Waupun Historical Society. Today, I would like to talk about the reality of what brought us to this point and our plan should the Historical Society vote to accept our option.
Currently the city’s budget pays all expenses associated with museum operation in the Carnegie building on S. Madison Street. In September of 2017, the Historical Society issued a press release that they could no longer afford to operate the Laird Museum and that they would be closing the building. While we are uncertain why the Historical Society retained the building after that announcement, today that group continues to struggle to maintain and is challenged to keep pace with the costs associated with operating that building.
Several months ago, the Historical Society board approached the City to ask for financial support to pursue a development idea to construct condos on the vacant portions of the McKinley Street parcel, located to the north of the school building on McKinley St. We evaluated that opportunity but the associated costs were not something the city was in a position to pay for while having no means to recoup the expense. Typically, we would use tax increment financing (TIF) for this type of opportunity, which would allow us to recapture the initial investment. This property does not currently reside in a TIF district and state statute does not permit us to introduce newly platted residential (which the proposal would require) into an existing tax increment district, nor does it allow for the creation of a new residential TIF district. Consequently, City officials rejected the Historical Society’s request for support.
The Historical Society has continued to communicate that they will give the McKinley Street building to the city, likely by the end of this year. Furthermore, that group has communicated their intent to keep the vacant land on that site to sell and/or develop in an effort to produce revenues for their organization. This may seem like a simple development on the surface but a number of factors influenced the city’s decision on this. We estimate the cost to raze the building to be $225,000, minimum. Extension of utility services to prepare the lot for redevelopment is estimated at $125,000. Additionally, anyone developing the site would incur engineering, stormwater, and other construction and interest costs associated with the development. It is premature to state total costs as there are still many unknowns.
City staff have been working with developers to evaluate potential for the site and see opportunity for residential development. However, all developers that the city has met with are requiring the school building be razed prior to negotiating terms of any agreement. To recoup estimated costs, the entire parcel would need to be developed, not just the portion with the school building. This lead city officials to the option to purchase the property. The terms of the option to purchase include a purchase price of $1 for the entire lot (not just the school building). The Historical Society will consider the city’s option at their monthly meeting on Monday, August, 26. If approved, the city would have until December 31, 2019 to identify a developer and finalize a development agreement before executing the option. City officials highly value the work and mission of the Historical Society and greatly appreciate the work of the volunteers who support this organization. However, city officials also have a strong sense of fiscal responsibility to the citizens of this community. We will continue to keep you informed on the progress of this situation.
On another front, Rob Bartz, a developer from the Fond du Lac area, recently acquired the former Christian Home and Rehabilitation Center building located on Bly Street. He is currently working to remodel 24 efficiency apartments, which will have all new cabinets, granite countertops, paint, and flooring. The first 12 units will be ready to rent September 1 with the remaining 12 units available October 1. Additional information on these rentals can be obtained by calling 414-217-1552.
Around town, the community is gearing up for the final festival of the summer with Volkfest returning for its final year on September 6 and 7 at Tanner Park. We are pleased to announce that the leaders of Volkfest have been working with the Waupun Chamber Board and have announced that the Waupun Chamber will be taking the reins and bringing a new festival rooted in the Volkfest tradition to Waupun in 2020! Watch for more details as we move into the new year. I hope to see you around town!
