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Wausau finance panel accepts $250,000 forgivable loan for MBX site amid debate over 3‑year term
Summary
The Wausau Finance Committee approved a $250,000 forgivable loan from the Judd S. Alexander Foundation to support redevelopment of the former MBX site at 201 N. 1st Ave. Members debated the loan's three‑year progress requirement and possible interest penalties if the project does not advance.
The Wausau Finance Committee voted Dec. 9 to accept a $250,000 forgivable loan from the Judd S. Alexander Foundation to aid redevelopment of the former MBX property at 201 North 1st Avenue.
Mayor (unnamed) urged the committee to accept the gift, saying the loan "in no way commits the city to any particular redevelopment outcome" and praising the foundation's long history of local investment. Staff described the agreement as a $250,000 forgivable loan with 0% interest for the first three years and an option to self‑extend to five years at 5% interest thereafter; forgiveness depends on the foundation's judgment that the city is making "reasonable progress on redevelopment."
Randy, a city staff member, outlined the site's constraints and opportunities, saying the parcel is about 5.9 acres in total with roughly 3.5 acres of developable land after floodplain setbacks. He told the committee the city is already pursuing environmental review, has scheduled a DNR meeting and is working with the Wisconsin Economic Development Corporation on potential funding for demolition, trail construction and cleanup.
Opponents on the committee voiced concern about the loan's timeline and the risk of accruing interest if the project stalls. Alder Cheney asked how the three‑year clock would operate given typical remediation timelines; another alder said the language is "ambiguous" and that the council could face higher interest if the city must extend the loan beyond three years.
Proponents noted past flexibility from the foundation and said the loan provides capital the city can use now while continuing due diligence. City staff emphasized the loan does not obligate the city to a specific land use; the council will decide any final development plans and any RFP for the site.
The committee approved the agreement on a motion by Alder Watson, with a second and a recorded outcome in committee minutes. The committee discussion noted a council decision point in September 2028 if the city has not achieved agreed progress milestones.
