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Council approves $750,000 term sheet for 11 Scott Street conversion to residential units
Summary
The Common Council approved a term sheet for Riverside Place (11 Scott Street) allowing a developer-supported conversion of two floors to 52 residential units, with a $750,000 TIF-backed forgivable loan, seven-year affordability covenants and changes to the city's parking obligations.
The Wausau Common Council voted 7-4 on Oct. 28 to approve a term sheet for redevelopment of Riverside Place at 11 Scott Street, authorizing city staff to move toward a development agreement that would support conversion of office floors to 52 multifamily units.
City economic development staff and the city's financial advisor presented the term sheet as the result of multi-year negotiations. The package calls for a forgivable loan of $750,000 from Tax Increment District (TID) funds, a cost look-back that reduces public assistance if construction costs come in below estimates, and an affordability commitment that the developer will keep rents at or below roughly 70% of area median income (AMI) for seven years.
Speakers at the public-comment period included business leaders and downtown stakeholders who urged council approval. They emphasized that the building is largely vacant, that its assessed value and property tax revenue have fallen in recent years, and that offering mid-market "missing middle" housing downtown could catalyze private investment. City and county witnesses told the council the building's assessed value had fallen from about $14.8 million in 2023 to roughly $7.8 million and that 11 Scott's property tax contribution had fallen from about $382,000 to $155,000; staff said the conversion would likely boost finished assessment and long-term tax base.
The term sheet also addresses the adjacent public parking ramp: under the proposed deal the city would reduce its contractual obligation of 480 stalls to 150 stalls for the property, recovering control of 330 stalls and generating an estimated $55,000 per year from the 150 stalls the city continues to provide. Staff and the developer said this change would reduce the city's ramp liability and create a modest revenue stream for ramp maintenance.
Financial advisors said the $750,000 commitment represented the minimum public assistance needed to make the pro forma feasible in the current market; earlier developer requests were higher and were negotiated down during the review. The loan is structured so funds would be forgiven gradually on completion and compliance with affordability terms.
Council members were divided. Supporters said the project will reactivate a dark, underused downtown building, add units at a price point currently scarce in Wausau, and protect the tax base. Opponents cited resident affordability concerns and urged caution about subsidizing private development. The council approved the term sheet 7-4; staff will return with a draft development agreement and additional due diligence.
