Council agrees to Logistics proposal

La Crosse Tribune, Apr 09, 2004 by Kent, Joan

The LaCrosse Common Council gave the go-ahead Thursday for an $11.4 million corporate center to house Logistics Health Inc. on Front Street.

The council unanimously approved a redevelopment agreement with Riverside Center LLC, which plans to construct the five-story building by Jan. 31, 2006.

But the council also set a roughly $6.3 million limit on how much the city can spend to secure the properties where the center will be built. Anything more would have to come back to the council.

The amendment, introduced by council member Doug Farmer, caps spending at about $4.5 million to acquire the Cargill grain terminal site and about $1.8 million to acquire the Piggy's on Front restaurant site.

The numbers are to include acquisition, relocation and demolition costs.

"The one gaping hole in this contract is that there is no cap on our exposure," Farmer said in arguing for the cap. "If we pass it (without a cap), we are committed to pursue these two properties to the end of the earth, no matter what the price."

Under the agreement, the city is to acquire and prepare a 3 1/2 acre site, and sell it to Riverside Center in two $1 installments. The site consists of the former Listman Mill property, which the city already owns, plus the Cargill and Piggy's land.

Don Weber, Logistics Health founder and chairman, said he was OK with the cap, which the council passed on an 8-7 vote.

"I understand that this has moved faster than any other project of this magnitude ... but timing is critical," he said, reiterating that Logistics Health has outgrown its two leased locations.

"I'm excited," Weber said. "It would have been easier to have gone to Onalaska (where he has property), but when all is said and done this will be good for La Crosse. I think LaCrosse needs a shot in the arm."

Voting with Farmer for the cap were Jon Olson, Andrew Monfre, Richard Becker, Bruce Ranis, Bernard Maney, Tom Sweeney and Marilyn Wigdahl. Voting against it were Mark Meyer, Todd Olson, John Satory, Mark Johnsrud, Bill Harnden, Audrey Kader and Larry Lebiecki.

The agreement does not include a requirement that Logistics Health create a certain number of jobs, though Weber has said he plans to have 500 employees within three years.

David Morrison, former Finance and Personnel Committee chairman, recommended a jobs requirement. "You are here to look after my interests as a citizen," he said. "The risks are significant because the dollars are significant. This will have a negative impact if it doesn't go forward as expected."

Mayor John Medinger, who earlier urged the Redevelopment Authority to pass the agreement without ties, said he is not troubled by the cap.

"I think it basically protects the integrity of the taxpayers," he said. "If we come back and the number is higher, I am confident the council will continue to support this project."

But Johnsrud, council president, said he feared the cap could push the timing back and jeopardize the project, and setting the level "telegraphs what we will pay in advance."

Cargill's relocation costs could be greater because the grain terminal must be on the water, he predicted.

"The message we are sending the developer is that if the cost is too high, we do not want to do it."

Several business and community leaders, including Lee Rasch and John Wettstein, urged passage of the agreement.

"This is a key opportunity," Rasch said, "to see tremendous growth in (the south end of downtown) that will spill over into the core."

The Redevelopment Authority and council also approved resolutions to finance the city's spending on the project through tax incremental finance districts, - in which tax revenue from new developments are used to pay the city's costs related to them.