Wausau committee tables 20-year Foundry on 3rd parking lease after debate over discount, notice

The City of Wausau Economic Development Committee on Jan. 7 voted to table consideration of a proposed 20-year parking lease with Foundry on 3rd, directing staff to revise several contract terms and return the item next month.

Committee members had debated a draft agreement that would reserve 100 unreserved stalls on the third floor of the downtown parking ramp for Foundry on 3rd and offer a 20% discount off the city's standard monthly permit rate. The lease would begin Dec. 1, 2025, and run for 20 years or until the parking facility is terminated.

The discussion centered on three recurring concerns: the 20% discount; the required 24-month notice the city must give if it ceases parking operations; and several liability and operational clauses in the contract.

Alder Killian said she opposed the proposed discount, arguing the developer has already received other public support. "I can't support a 20% discount. This is a $45,000,000 project and they're getting about $10,500,000 in tax subsidies," she said. City Attorney Anne Jacobson walked the committee through contract language, telling members the 20% discount appears in paragraph 3 and is a business decision for the committee and council to make.

Jacobson said staff would add standard insurance language, name the city as an additional insured and require certificates of insurance before council consideration. On termination and force majeure, she explained the clause gives the city the right to end the lease if the facility is destroyed or otherwise unusable; she said the clause does not remove the developer's liability for damage caused by its guests. On removal of disruptive patrons, she recommended tying the city's right to expel people to violations of city ordinances to make enforcement more objective.

Staff described operational details that informed the draft. Randy Pfeiffer said the Foundry's planned skywalk will connect to the ramp's third floor, which is why the 100 spaces were proposed on that level. Mary Anne, parking operations director, said the city's current monthly permit rate for the relevant ramp is $28; a 20% discount would lower that to about $22 per month for each stall. Pfeiffer and Jacobson also noted the city currently has a downtown contract to clear sidewalks and performs ramp maintenance, and that the city can provide alternate parking during short closures (for example, the JCPenney ramp is available now).

Committee members suggested edits. Ald. Killian asked Jacobson to examine whether the 24-month notice requirement could be shortened; Jacobson said she was unsure how that duration was chosen and that staff would investigate. Jacobson also confirmed the draft allows Foundry to assign up to 50 of the 100 spaces to an affiliate and proposed clearer notice procedures tied to registered-agent receipt.

Alder Henke moved to table the item for one month so staff could incorporate the suggested changes and return in February. Alder Tierney seconded. The motion to table passed by voice vote with no opposition.

Staff said Nick Patterson of Foundry on 3rd was available virtually to answer questions but the committee chose to request revisions before further discussion at committee and council.

What’s next: staff will revise the lease language to address the insurance, notice, maintenance and removal provisions discussed by the committee and return the item at the next Economic Development Committee meeting for further consideration.