City panel not sold on warehouse property

0 Comments | La Crosse Tribune, May 03, 2001 | by Kent, Joan

The city of La Crosse should not buy the former Heileman warehouse at Second and King streets, a La Crosse Common Council committee decided Wednesday.

The council is considering a proposal to buy the warehouse from First Supply Group for about $1.3 million.

Supporters of the purchase want to initially use it as storage space for the La Crosse Center and police and fire departments, and later redevelop the property.

"This is a long-range plan for the city," John Satory told fellow members of the Highways, Properties and Utilities Committee. "This building should never have been built there. It is good for the city to look at the future, so we could have something we are proud of there."

The city has about $300,000 but would need to borrow $1 million from the State Trust Fund. As the loan would exceed the city's cap for capital improvement borrowing, a two-thirds vote of the council would be required.

Another $58,000 also would be needed to make the warehouse secure, said City Engineer Randy Turtenwald.

City Planner Larry Kirch has said that rent from The Company Store, the current tenant, would help pay for the building.

In an interview before the meeting, committee member Bernard Maney said he opposed the purchase because it would be cheaper for the city to build storage and the money would be better spent on the city's neighborhoods.

Turtenwald said it would cost about $226,000 to build a storage building for police and about $72,000 to build storage for the fire department, both on land the city owns.

The City Plan Commission had voted in favor of the purchase Monday.

Also on Wednesday, the Highways, Properties and Utilities Committee supported a proposal to prepare plans and advertise for bids to provide fill for raising a portion of Rose Street.

Public Works Director Pat Caffrey suggested the city arrange for the elevation work while the state is reconstructing Rose Street between Windsor and Livingston streets. The Wisconsin Department of Transportation has agreed to do the work if the city will provide the fill, he said.

On another matter, the committee voted to postpone for 30 days a proposal to negotiate for an extension of local developer Jay Hoeschler's option to develop land between his Riverplace One and the CenturyTel regional headquarters.

If the council agrees, City Attorney Pat Houlihan said there would not be any negotiations, as Hoeschler's current option expires June 15.

If the option is not extended, City Planner Larry Kirch told the Redevelopment Authority earlier Wednesday that CenturyTel will pay Hoescher $250,000 for the property and develop it into a wooded parking lot.

"That is not the highest and best use of the property," Kirch said. "With all the redevelopment we've done there, should we hold out hope for better redevelopment on that site?"