WAUSAU, WI (WSAU) — City leaders are turning up the heat on the Wausau Center Mall over two years of back rent payments, saying it’s another sign that the property isn’t operating in the best interest of the city.
Mayor Robert Mielke says the missing payments account for one portion of a three-legged lease agreement between the city and mall owners Rialto Capital Management, which calls for the city to receive a portion of the mall’s annual profits. He says the amount has dwindled significantly over the last few years as the mall has declined, but the city would still like to see their money. “It’s still an obligation that they are supposed to be taking care of. They have to abide by what they agreed to, and we are going to hold them to it.”
It’s possible that the mall may have failed to turn a profit, in which case that portion of the rent could be forgiven. Mielke says he hasn’t been told that’s the case. “From what we understand even from them is that they are still making a profit, just not what they used to.”
The other portions of the rent include a cut of parking ramp fees and the lease for the property. Mielke says the city does not own the mall structure but does own the land underneath it and the parking ramps attached to it.
Mielke says the issue has been going on for two years. He says he doesn’t currently have a plan for the city to force compliance with the mall owners but has talked with attorneys about the matter.
The Mayor is also using the situation to renew his call for mall owners to either sell the property or take it in a different direction. “They have to decide what they are going to do, and if it’s not in the best [interest] for the city of Wausau then it’s time for them to sell to someone who will take care of it and move on.”
“I can’t wait around, they have got to do something as far as making the mall work, no matter what it is. This is twice now that I’ve had to do it. I did it previously with CBL and now with Rialto, their long-term interest is not in the best interest of the city,” added Mielke.
