City negotiating with lone Amtrak depot bidder

0 Comments | La Crosse Tribune, Sep 08, 2004 | by Kent, Joan

The Amtrak Selection Committee decided Tuesday to continue negotiating with Mike Keil, the ]one developer to answer the city's request for proposals to buy the 1926 depot at 601 St. Andrews St.

"We could have opened it up for more bids, or said we do not want to sell it," Mayor John Medinger said after the committee's closed session. "But we will continue negotiating with Mr. Keil."

"You are still our only guy, but we do want more money," he said to Keil.

Keil has offered the city $50,000 for the depot. Tuesday's meeting was held to consider a counteroffer in closed session. Members would not reveal the amount of the counteroffer.

Medinger gave the committee a letter from Richard Masrud, who said he renovated the Grandview Hospital, the old Penny's building and Evergreen Apartments with Patrick McGuire.

"It is obvious to us the Amtrak Depot is worth more money than what is currently being considered," Masrud said in the letter. "We are willing to make an offer that is substantially higher should the bidding be reopened."

Medinger said Masrud said he was not aware of the request for proposals. It was sent to 16 potential buyers, mainly local developers and Realtors.

Masrud was not among them.

Medinger also gave the committee a letter John Parkyn, president, Wisconsin Association of Railroad Passengers. Selling the depot puts future train service at risk, he said.

The city's request for proposals said the Amtrak depot must remain in the building.

The depot has four tenants including Amtrak. The others are Chosen Valley Testing, Jefferson Bus Line and World Travel Partners.

They occupy about 7,000 of the approximately 10,000 square feet in the building. The current annual income is about $65,000, but Amtrak, which pays $16,354, might pay only $1 per year in the future.

Council President Mark Johnsrud, a member of the committee, has noted that the building, now off the tax rolls, was once assessed at $500,000, and said he is concerned the city is being offered only $50,000 for it.