Depot deal reached

0 Comments | La Crosse Tribune, Oct 13, 2004 | by Kent, Joan

The Amtrak depot might have a new owner by the end of the year.

The city's Amtrak Selection Committee voted 5-1 Tuesday on. an agreement with Mike Keil, the lone developer to submit a proposal.

The agreement will be introduced Thursday for consideration by the La Crosse Common Council in November.

The city has tried for five years to rent out the renovated depot, said Mayor John Medinger. "Our hope is that the private sector will be able to do a better job. We hope to increase the tax base and create some new jobs."

Keil said he has already started trying to line up more tenants. There is some interest in the building, but none that he can report on yet, he said. He said he is looking at office tenants.

The interior is in good shape, but the exterior needs some work and the parking lot needs to be repaired, he said.

Keil had offered $50,000, but under the agreement he will pay the city $100,000.

In addition, he has to guarantee taxes on an assessment of at least $500,000 for 99 years.

The building is assessed at about that amount now, Keil said.

But he said he would be more comfortable with guaranteeing taxes for 20 years than for 99 years. A suggestion for 20 years was introduced but failed, Medinger said. It may be considered by the council in November, he said.

The agreement also puts a restrictive covenant that Amtrak will remain in the building and that high-speed rail would be accommodated if it comes to La Crosse.

Amtrak has indicated it may reduce its payments to $1 per year. "Keil understands that Amtrak is in financial difficulties, and that he will not make money on Amtrak," Medinger said.

He said the city is interested in getting two stops by Amtrak per day at the depot.

The city has been negotiating with Keil, who developed Jackson Plaza and wants to renovate the Doerflinger, the lone developer to answer a request for proposals to buy the Amtrak depot.

The city invited 16 developers and realtors to submit proposals. Other local developers, who were not invited, have criticized the city for not advertising the property. But City Attorney Pat Houlihan has said that a November, 2003, council resolution establishing a selection committee for the property superceded the city's rule requiring that surplus properties be advertised.