Wausau City Hall. MWC photo by Mike Leischner
WAUSAU, WI (WSAU) — The Wausau City Council has shot down a proposal to build a home valued at nearly $350,000 then flipping it to a qualified first-time homebuyer at a $200,000 discount.
Council President Lisa Rasmussen said she supports the cause, but can’t support the economics of the proposed plan. “We approved a sum of ARPA dollars that we wanted to devote to affordable housing, to see if it was possible to find some of these lots that we have available, construct five or six affordable homes on them, and then sell them. But I think what’s happened is the market conditions [don’t make this plan] feasible.”
Rasmussen added that the cost of insurance, taxes, and upkeep must also be considered. “Even if you purchase it cheaper, can you afford the tax bill [on a $350,000 home?] That is something that should weigh heavily on us as well. You don’t want to set people up to fail.”
Alder Becky McElhaney said nearly every resident who contacted her about the project emphasized that they weren’t against affordable housing, they were against the particular project because of the economics of the proposal. Mayor Doug Diny compared the proposal to a “lottery” which would have landed the winning family a $350,000 home for about $140,000.
The project passed the Economic Development Committee on a 3-2 vote. Alders voted 10-1 against it on Tuesday, with Chad Henke the lone yes vote.
Economic Development Director Randy Fifrick noted that the lot in question, located on Bridge Street, has been put out for bid several times with no takers. Brian Luedtke and Associates Construction submitted the lone proposal for this round.
Alder Lou Larson suggested turning plots like this one over to private contractors, a rare moment of agreement between him and Alder Rasmussen. “Mark it on the calendar. Maybe we ought to give up on some of these fills and turn [them] over to the private sector, let them build on these lots.”
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