Edgewater Sale Passes City Planning Commission
Left, City Plan Commissioners Anna Haines, Tony Patton and Gary Curless with Kyle Kearns, an economic development specialist for Stevens Point, discuss Edgewater Manor at the June 3 City Plan Commission meeting. (City-Times photo)
By Brandi Makuski
City leaders Monday night approved the transfer of Edgewater Manor from the city’s Community Development Authority (CDA) to Affordable Senior Housing (ASH) of Central Wisconsin, Inc.
According to state financial documents, ASH is run by Philip I. Parkinson, Rhinelander City Attorney. Tom Ludwig is listed as the company’s general contractor.
While the move still needs final approval from the Stevens Point Common Council, CDA Director Michael Ostrowski said unloading the property to a private entity is the best thing for the city coffers.
Edgewater Manor is an 81- unit apartment building catering to income- eligible seniors. According to Ostrowski nearly half of the current tenants qualify for income vouchers to offset the $533 rent. The building is currently 38 percent vacant and operating at a loss.
“One of the challenges with Edgewater Manor is it needs a lot of upgrading,” Ostrowski told commissioners Monday night. “Its competition is cheaper, they’re better units, they’re updated, so if the CDA is going to keep this facility they’re going to need some funds in terms of investment in the property to make it marketable.”
The CDA in April considered three proposals for the property, after an initial plan to sell without a public bid as panned by local residents and contractors, in April. Affordable Senior Housing of Central Wisconsin Inc. (ASH) was chosen after it offered the highest purchase price and, according the Mayor Andrew Halverson, “the company’s bid was the most specific in terms of what it planned to do with the building and how it planned to continue serving seniors in the community.”
ASH will purchase the senior living facility for $1.55 million and would be providing “similar occupancy” units to what the building offers currently for income- eligible seniors 55 and over, Halverson said. The company also plans to include assisted living and rehabilitation services on some of the building’s floors.
But the proposal wasn’t agreeable to everyone, as some residents and commissioners said they didn’t feel enough information was being made public.
Whiting resident Reid Rocheleau said the city could garner a large sale price if it waited longer. “What’s the hurry? I’ll tell you- the mayor is cooking up these deals behind the scene. But you’re the Plan Commission. You’ve got to think about what you want this community to be, and what you’re going to do with the money.”
“The problem I have with you guys making this or any decision tonight is, they (the CDA) aren’t giving you any alternative if they city would keep it,” said Stevens Point business owner Barb Jacob. “If the city were to keep this property how much money could we make? All they’re telling you is, ‘if we sell it, we can do this’. They’re not giving you alternatives, and I think you guys need to have that information in front of you because you’re not getting the full picture. You’re not being given that tonight.”
But city planning leaders said Edgewater has bogged down city finances, saying the loss of HUD funds in 2008 has left the city unable to renovate the property.
“It’s very, very difficult to run this type of project in an unsubsidized environment,” said Mayor Andrew Halverson. “The greatest challenge is the added capital into it that’s needed. There isn’t another municipality in the State of Wisconsin independently through its own tax levy owns public housing and subsidizes it of their own tax levy.”
The sale of Edgewater, Halverson added, would put the property on the tax rolls. How much tax revenue could be generated would be discussed at a future Finance Committee meeting, he said.
Some Commissioners inquired as to the background and sustainability of ASH, which registered its LLC one week prior to submitting its project bid in April. Ostrowski said the company’s proposal seemed solid and included proof of project funding from a local bank. Commissioner Jerry Moore- who also serves as Common Council President- said he’s also concerned the city would have no control, outside of zoning, over whether ASH could change its focus away from senior living. Halverson assured commissioners a separate developer’s agreement between ASH and the city could set that kind of requirement.
Moore also questioned ASH’s promise the pay an undisclosed donation to the “Youth of Stevens Point”. Moore asked for clarification because the proposal did not specific if the donation was a generalized one for all youth or a specific group, to which Halverson only answered: “very nebulous, has not been answered, to our opinion.” Halverson said.
The measure now comes before the Common Council for consideration at its regular meeting on June 17.