Wausau committees approve 50‑unit affordable housing deal at 700 Grand Avenue

Wausau finance and economic development committees on March 25 approved a purchase and development agreement with 700 Grand Apartments LLC (formerly Commonwealth Development) to build a 50‑unit affordable multifamily complex at 700–816 Grand Avenue.

The agreement calls for the city to provide $1,840,000 from the affordable housing extension fund to fill a financing gap; the developer expects to use Low Income Housing Tax Credits (LIHTC) and other private financing. The project’s completion date in the agreement is Dec. 31, 2026. The city also agreed to a $60,000 contingency from the same fund to help cover environmental cleanup costs if brownfield remediation exceeds expected grant support.

The project drew extended discussion at the joint session because of environmental and traffic concerns. Randy (city staff) summarized the environmental review process and said the developer has completed a Phase I and Phase II assessment, submitted a site investigation work plan (SIWP) to the Wisconsin DNR, and is awaiting DNR sign‑off on the site investigation report (SIR). “Their drillings now exceed about 30 different test pits, and throughout all those test pits, none of the drillings have presented any contaminants of VOCs,” Randy said. He added that if any previously undocumented underground storage tanks (USTs) are found, the developer would be responsible for cleanup, subject to the $60,000 city contingency.

Tyler (Commonwealth/700 Grand Apartments LLC) described the project’s aim to “cast a very wide net across the community” by offering units for households at a range of incomes. “We’re looking at ranging as low as $17,000 a year up to $82,000 a year,” Tyler said, describing the developer’s target mix and rent tiers. Keith Dahl of Elders, the city’s financial consultant, said Elders reviewed the developer’s sources and uses and determined the city contribution needed was $1,840,000 (down from an initial $2,000,000 request). Dahl also described the proposed disbursement structure: 90% of the city assistance would be provided at certificate of occupancy, with a 10% retainage held until a look‑back on costs 60 days before permanent financing; if costs come in lower, the city’s assistance could be reduced.

Traffic and safety dominated many alderpersons’ remarks. Alder McElhinney, Alder Killian and others voiced concerns about vehicle conflicts at the Grand and Thomas intersection and the proposed right‑in/right‑out access on Grand Avenue. Tyler and staff said traffic engineers recommended the right‑in/right‑out configuration to reduce turning conflicts on a high‑volume corridor and that parking was reconfigured to split about 30 stalls toward Thomas Street to reduce bottlenecks. Staff also said 20 feet of additional right‑of‑way along Grand Avenue has been reserved to allow for future roadway improvements if needed; the Wisconsin Department of Transportation would fund the state highway reconstruction work, with the city responsible for utilities and inspection costs.

Alder Killian told the committee, “I don’t think that I’m gonna be able to support this development agreement,” citing traffic and safety concerns. Despite that opposition and other expressions of concern, the finance committee approved the agreement on a motion by Alder Henke with a second from Alder Gisselman. The economic development committee also approved the agreement on a motion by Alder Henke with a second from Alder Gisselman; committee members recorded one opposed vote (the roll call did not name the dissenting member).

Supporters framed the project as a way to add affordable housing on an infill commercial parcel and to remediate a site that has been vacant for years. Randy said that, given the testing results and the brownfield grant application to WEDC, the city would be positioned to address environmental issues should they arise.

Clarifying details in the record include a city contribution of $1,840,000, a developer contingency request that could be covered up to $60,000 by the city if WEDC brownfield grant funds fall short, an agreement completion date of Dec. 31, 2026, and an approximate minimum construction spend discussed at the meeting of about $11.5 million. The packet and staff presentation list the project as 50 units; an early oral reference to “70” appeared during discussion but the printed agenda and development agreement state 50 units.

The committees did not set any additional council conditions during the joint session; staff and the developer answered questions about environmental testing, traffic design, unit mix and funding timing.

The committees’ approvals move the project forward under the terms discussed at the meeting.