Wausau committee advances proposed sale of 208–214 Wyatt Street to buyer seeking block‑grant assistance; motion passes 3‑2

The Wausau Economic Development Committee voted 3‑2 May 6 to advance a request to sell three city‑owned parcels at 208–214 Wyatt Street to a prospective buyer who is income‑qualified for federal block‑grant assistance to remediate contamination and raise the site out of the floodplain.

City housing and property staff described a long history of city ownership: the city purchased 208 Wyatt in February 2003, demolished structures and listed parcels for sale in 2005, and has maintained the land since then. Staff said the parcels were contaminated in part because of historic automotive‑repair operations; the Department of Natural Resources (DNR) previously reimbursed the city for a portion of cleanup costs.

Tammy Strats said the prospective buyer, identified to staff as Gunther Nowak, is income‑eligible for block‑grant funds and plans to live in one unit while renting others to help pay a mortgage. She said the buy‑in would be structured as a mortgage recorded against the property and envisioned as a forgivable loan that would be forgiven over time as the purchaser lived in the home.

Committee members pressed staff on costs and policy. Strats said a rough estimate from a consultant (REI) for raising and remediating the property was about $2,025,000. Alder Walter Killian told staff he had asked the assessor what the parcels would be worth if not tax‑exempt: the assessor’s figures in committee discussion totaled about $51,800 for the three lots (two parcels assessed at roughly $17,000 each and a third at about $16,000).

Killian said he could not support selling the parcels for $1,000 given those estimates and the city’s ongoing maintenance costs. "I personally cannot see providing that parcel to anybody for a thousand dollars," he said. He also cited a March 2024 city resolution and associated guidelines on disposition of city property and said he believed the current presentation did not follow that process.

Other committee members said efforts to market the lots have not produced buyers because the contamination and floodplain issues deter private buyers and realtors. One nearby neighbor and Lake Wausau resident who addressed the committee said the neighborhood was glad to see the lots developed and noted they were not aware the parcels were actively for sale; the neighbor encouraged city marketing options such as signage or listing on the city website.

Strats said that because the prospective buyer qualifies as block‑grant eligible, federal funds could be used to cover remediation that the city otherwise would bear for a non‑eligible buyer. She emphasized the structure would still record a mortgage on the property and require repayment if the buyer sold the property before the forgivable period elapsed.

Alder Henke moved to approve the sale disposition application to the applicant and Alder Gisselman seconded; the motion passed 3‑2 and will be forwarded to city council for final action. Committee members who opposed cited cost to the city and the proposed $1,000 sale price; supporters said the parcels have been vacant and off the tax roll for many years and that the city has limited success marketing them.

The committee did not set a final sale price or finalize the mortgage/forgivable loan terms at the meeting; those details were described as subject to negotiation and to plan commission approvals for rezoning and permitting. The item will next appear on the city council agenda for consideration.