Deal for former hotel property still in works

0 Comments | La Crosse Tribune, Jan 18, 2002 | by Magney, Reid

La Crosse County officials remain confident they can close a deal with developers on the former Yacht Club Resorts hotel property.

Board Chairman James Ehrsam said the county, city of La Crosse and developers Jay Hoeschler and Noel Jordan are negotiating a threeway developers agreement for the property at 529 Park Plaza Drive on Barron Island.

In November, the board accepted Hoeschler and Jordan's bid of $300,000 for the property, which the county took over last year because owners owed about $1.1 million in unpaid property taxes, interest and penalties.

But they're still negotiating on when the county will get its money. The developers wanted to pay the $300,000 after five years and in the form of property taxes. County officials wanted cash up front.

Ehrsam said that at a closed meeting of the board Thursday, he discussed "a couple of tentative dates" by which the developers would pay the county. The board took no action, he said.

"The developers agreement will set the dates" the developers will pay the county, Ehrsam said.

Ehrsam said county officials want to wrap up the deal soon. "We don't want the land to sit vacant. We want to get it back on the tax rolls. That's one of the reasons we sold at a bargain price," he said.

Hoeschler was out of town Thursday and not available for comment.

Hoeschler is a local real estate developer and owns most of the land surrounding, the bankrupt hotel property, including a strip of waterfront land.

Jordan owns SkipperLiner Marine Group, which leases property from Hoeschler for its offices and a marina next door to the hotel.

They propose to raze the 40-year-old vacant hotel and transform the property into a $15 million to $20 million multistory condo, hotel, restaurant, yacht club and marina over the next five years.

Under the developers' plan, it will take two years to clear the site, raise it above the flood plain and get permits. They would start building a restaurant, yacht club and marina development in the third year, as well as the first phase of hotel-condominium construction. That would continue in year four and conclude in year five.