WAUSAU, WI (WSAU) — A project to renovate part of the Plaza Hotel and build apartments on the rest of the lot is one step closer to beginning.
On Wednesday evening Wausau’s Finance and Economic Development committees met for a joint meeting regarding essential business. Half of the meeting agenda was regarding a proposed project to renovate some of the current Plaza Hotel and to build apartments on another third of the lot.
The project would split the current Plaza Hotel location into three different lots. One lot would be the tower portion of the Plaza that would be renovated into a smaller Best Western branded hotel. Another lot would be sold for other redevelopment purposes. Then the third lot that contains the ballroom, pool and 2-story motel would be sold to Lokre Company to be demolished and redeveloped into apartments.
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City Director of Economic Development Chris Schock says the proposed project makes sense for the lot as it provides a solution to a difficult parcel in the city. “There’s a majority of the property that is significantly blighted. Its been through foreclosure.
“It’s been challenged in trying to come up with a solution. And it’s so large that it’s hard to bite off. So that’s why we’ve worked with both of the parties [Plaza owner and Lokre Company] to come up with a solution that’s two-fold.”
While both committees agreed to the renovation of the tower portion of the Plaza, there was some opposition to the multifamily residential project. Specifically, District 5 Alder Gary Gisselman was opposed to the project being market-rate apartments instead of more affordable options.
Lokre Company owner Rolly Lokre did explain that the apartment complex would have a variety of units priced at different levels. But that the project was also being built to complement the current Mountain Lane Apartments being developed by Lokre Company.
Schock also mentioned that the City is working on developing low-income housing with the renovation of the Landmark Apartments. “At Landmark, there will be 96 units. That’s more than Trolly Quarter, Savo Supply, and the Federal Building all combined.
“So we are adding a significant amount of low-income housing tax credit units in the City of Wausau.”
The request for city funding for the multifamily residential project was approved unanimously by the Finance Committee. It was also passed by the Economic Development Committee on a 4-1 vote with Alder Gissleman being the one no vote.
City funding for the projects will include a Commercial Rehabilitation Loan and one year of reverse TIF financing for the renovation of the Plaza Hotel. The city will also be giving TIF grant funding for the demolition of the rest of the hotel and 10% reverse TIF funding for the construction of multifamily housing.
The projects now go to the City Council for approval. The requests will be approved by the new City Council, who will be sworn in on April 14th after results from the Spring Election are released on April 13th.
