The Wausau Economic Development Committee on Jan. 6 approved a memorandum of understanding and a limited waiver of the city's right of first refusal for the sale of 130 North 1st Street, responding to a lender request intended to remove an obstacle to financing.

City staff explained that the building had received a commercial rehabilitation loan and that the city previously held a standard right of first refusal keyed to nonprofit purchases. The buyer has an offer and the buyer's lender told staff the city’s first-right clause could complicate loan underwriting and foreclosure remedies.

Tammy, city staff responsible for the loan program, explained the limited waiver would allow the lender to exercise remedies in the rare event of foreclosure without the city "standing in the way," while preserving the city's rights for other future sales and transactions. "We are not waiving that right if there's another sale," Tammy said, describing the waiver as narrow and specific to the present buyer and lender.

Staff also said they had received a title-company request for a loan payoff dated Jan. 15 and that the city expects to be paid in full. The committee approved the limited waiver and the related MOU by voice vote; no opposition was recorded.

The buyer in the current transaction is a for-profit entity, staff noted, and staff said any future refinancing or other buyer or lender would require the city to review waiver terms again.