The Stoughton Common Council last week approved purchase options on two properties that would represent the first acquisitions in redeveloping the downtown railroad corridor.
Tax incremental financing funds will be used to acquire the massive multi-story former Stoughton Trailers building at 501 E. South St. from Stoughton Trailers owner Donald Wahlin for $150,000. The property would be owned by the Redevelopment Authority (RDA), which plans on demolishing the building, decontaminating the property and finding a developer for the site.
"The city needs to take ownership of the property in order to apply for the environmental grants" to clean-up the property, which has not been in active use for decades, said Finance Director Laurie Sullivan.
Demolition and clean up costs are an estimated $700,000. State grants could reimburse the RDA $200,000 toward clean up costs. Once a developer is secured for the property additional grants may be available for demolition. Depending on resulting development, the property could eventually be valued at $4.3 million.
The property is currently at assessed $87,000. Paying the $150,000 purchase price would be deferred until the property is redeveloped. The council approved the purchase option except for Ald. Dave McKichan who dissented.
A second purchase option was approved for 623 8th St. which is being "aggressively look(ed) at," by Movin'Out of Madison, said Ald. Steve Tone.
The vacant land includes a stretch of riverfront property along the Yahara River. The tract also is owned by Wahlin and currently is used for storage by Stoughton Trailers.
The council approved a request from the RDA to sign an option (two years) to purchase the property from Wahlin for $110,000.
City officials note, however, that there are several more steps and measures to be approved before a deal is finalized.
For one, Wahlin has asked for considerably more ($250,000) than the $110,000 the city has approved. For its part, the city is concerned about possible costs to cleanup the site, although tests to determine the level of cleanup needed have yet to be completed. Some questions also remain about the depth of the water table on the property and what measures might need to be taken to render the property buildable.
Movin' Out, of Madison, has announced plans to build six multi-unit buildings on the 2.5-acre tract. Movin' Out is a non-profit corporation that helps provide affordable housing to individuals with disabilities.
Details of the offers and counters between the city and Movin' Out remain confidential, but if accepted will eventually be advanced to the council.
Also Monday, Plan Commission met and unanimously approved Movin' Out's request to rezone the Eight St. property from Heavy Industrial to Planned Development.
n In other action, from last week's council meeting, the council approved appointments to a storm water utility advisory committee including the representatives of the following entities, the mayor, council president, Rodney Scheel, development director; Robert Kardasz, utilities director; Dennis Barkenhagen, Stoughton Area School District; pastor Mark Peterson, Scott Sedlacek, Stoughton Trailers; Peter Sveum and Robert Barnett.
