Wausau takes another step toward realizing Grand Avenue housing development

Damakant Jayshi

City officials this week took another step toward facilitating an affordable housing project on Grand Avenue, a decision that will likely result in losing nearly a half-million dollars in state transportation funding.

No one spoke on the matter during an August public hearing. But on Thursday, Wausau’s Infrastructure and Facilities Committee approved vacating a right of way at 700 Grand Avenue and Thomas Street to make way for the development.

The city in 2022 awarded Commonwealth Development Corp. of America the roughly $17 million project through a Request for Proposals process. Commonwealth plans a four-story, 50-unit affordable housing development with 15 one-bedroom, 16 two-bedroom and 19 three-bedroom apartments to accommodate both single renters and families with children.

At issue is state funding for an eventual reconstruction project. The Wisconsin Department of Transportation plans to widen the space around on Grand Avenue in 2030 or 2031 to more safely accommodate bicycles and pedestrians. The improvements at the Grand Avenue and Thomas Street intersection will also require additional land, city officials said.

State funding at risk was initially specified at about $332,000 but has since been adjusted to $468,065. The revised amount was mentioned on the agenda of Wausau’s Finance Committee meeting of Sept. 24 and confirmed by Finance Director Maryanne Groat.

The revelation took some alders by surprise. Alder Gary Gisselman in September asked if there were any other “surprises” and Alder Becky McElhaney complained about the “drip, drip, drip” of information.

Alder Victoria Tierney, also during the September Finance Committee meeting expressed concern about the large amount of money at stake But Finance Committee Chair Michael Martens said the city must prioritize the long-term gain of building affordable housing compared to taking a short-term loss.

Interim Economic Development Director Randy Fifrick apologized to the Finance Committee in September and said staff will work to ensure such situations do not emerge with future projects. All alders on Finance ultimately voted to approve the measure.

In August, Lindman told the Finance Committee that the city, working with Commonwealth, preserved a 20-foot strip of land on the east side of the property to allow for the possibility of the traffic lane improvement “and we do not feel any additional property would be required.” Lindman also said that the “staff has spoken with the DOT and they do not feel they need the property proposed for vacation to reconstruct Grand Ave at this time.”

But the funding remains a sticking point. The I&F Committee’s decision comes after the Wausau Finance Committee, in a tight vote on Aug. 27, opted to support the 50-unit affordable housing project.

The entire matter is raising questions about transparency and long-term city planning, and whether staff presented all relevant facts before Wausau City Council on Aug. 19. The financial implication – losing potential funding from the DOT – was not included in the packet of the Aug. 19 meeting.

However, city staff have said that they were not told about the DOT’s plans until the summer.

Fifrick told Wausau Pilot in August that the when Community Development, Public Works and Engineering staff met in 2022 to discuss reserving the appropriate amount of right-of-way on Grand Ave and Thomas Street ahead of the RFP, the DOT did not have a Grand Avenue project on a reconstruction schedule at that time and nothing was planned.

At the August Finance Committee meeting, some members wanted to hold the scheduled October public hearing on vacating the right-of-way before making a decision. But Fifrick argued that doing so would further delay the Commonwealth housing project, which was already complicated by a required sewer pipe relocation that emerged well after the RFP process began.

The matter was subsequently listed on the agenda of the City Council’s Sept. 10 meeting but was pulled out of the agenda.

On Thursday, Alder Martens supported vacating the right-of-way because he said it would help the planned housing development but he was also in favor of doing everything to allow for the reconstruction on the Grand Ave that the Wisconsin Department of Transportation wants to undertake. He said that he agreed with Public Works Director Eric Lindman’s suggestion – made at a past meeting – that if the city can maintain a 20-foot strip for reconstruction in the area, they will still be able to get the housing development done.

“I definitely want to see more affordable housing, and I want to see that intersection reconstructed,” Martens said.