Developers pitch conversion of 11 Scott Street into 52 apartments; council moves to closed-session negotiations

Lockrey Development representatives presented a plan on Oct. 14 to convert the upper floors of Riverside Place (11 Scott Street) in downtown Wausau into 52 residential units and asked the City of Wausau for $950,000 in public assistance to make the project financially feasible.

The joint session of the Finance Committee and Economic Development Committee heard from Mark Craig and Raleigh Lockrey of Lockrey Development. They described 11 Scott Street as a four-story, roughly 100,000-square-foot building that currently contains large, hard-to-lease office floors and limited active tenants. The developers said the residential component would be a 52-unit “missing middle” product: 41 one-bedroom units, 10 two-bedroom units and 2 three-bedroom units. They said the residential portion is estimated at about $7.8 million and the total redevelopment package, including office work, about $10.6 million. The developer’s request to the city was described in the presentation as $950,000.

Why it matters: Developers and members of the public told the committee the downtown needs more mid-market housing to support retail and employers. Public commenters at the start of the meeting — Tim White, Liz Went and Dave Ekman of the Greater Wausau Chamber of Commerce — urged the committee to support infill housing and called the location a key downtown asset.

Details from the proposal and presentation: Lockrey representatives said they plan to convert the top two floors to residential and pursue office tenants for at least part of the second floor; if sufficient office demand does not materialize they said they would consider converting additional floors to residential later. They said the project currently includes covered parking stalls tied to the building and that they have discussed modifying the current parking obligation (the presentation referenced roughly 450 stalls for the site and a potential reduction of about 150, subject to further discussion). The developers estimated a construction timeline that would allow work to begin in winter or spring and to take about 12 to 18 months to complete the residential conversion.

Financial context provided by the presenters: Lockrey representatives said the full project is roughly $10.6 million, the residential conversion about $7.8 million, and that the developer believes a $950,000 city contribution is the minimum subsidy needed to proceed. They described the product as deliberately targeted to the “missing middle” market segment — rents below high-end downtown projects and above low-income subsidized housing. The presenters said they plan mostly one-bedroom units consistent with market demand in Wausau.

Committee action: With no public deliberation recorded on a finalized incentive agreement, the committees voted to go into closed session under Wisconsin Statute 19.85(1)(e) to negotiate a term sheet for redevelopment of Riverside Place (11 Scott Street) by 11 Scott Street LLC. The motion to enter closed session was made and seconded, and the roll-call/voice vote to move into closed session carried.

What was not decided: The meeting record shows a motion to go into closed session to negotiate; no final redevelopment agreement or subsidy was approved in open session on Oct. 14. Specific final terms, any conditional commitments, and any repayment or performance provisions were not presented in open session.