Redevelopment group seeks new approach to vacant site

It wants more autonomy for downtown parcel next to parking structure

By Jennifer Eisenbart

Staff Writer

Just what is the plan for the rest of the downtown redevelopment project – and the slated retail development next to the city’s parking garage?

If the group with the option to the property has its way, it might just be to take the property off the Community Development Authority’s hands.

The retail development – which has been stalled since 2008 and remains and unimproved plot of land next to the parking structure – was discussed at length Tuesday night at the CDA meeting that preceded the City Council meeting.

The long and the short of it, though, is that the group that holds the property – Burlington Core Upgrade II – thinks the best option to lure investors into developing the land might be to sell the property to the private group.

The problem, said Tom Stelling and Bill Stone of the Core Upgrade group, is getting investors interested in a property that isn’t owned by the people wanting to develop it.

“It’s too theoretical,” said Stone of getting people to invest and commit to leasing space in a building that still in flux and up for debate.

Stelling said that to move forward with the development, he would need to get about 75 percent of the space leased and put 30 percent down to get the financing.

Right now, he has people interested, but those businesses and individuals would only fill about 40-45 percent of the space.

Also part of the formula is what to put in the space. The Core Group admits committing to putting apartments in the space would get immediate attention, but then parking problems would exist.

Planned medical office leases for the space went out the door, Stone said, with the Affordable Care Act (commonly called Obamacare) and its uncertainties.

The group’s option with the property expires in April. Mayor Bob Miller said he wanted to keep the property commercial if “at all humanly possible,” and would entertain any and all options the Core Group would bring forward.

In addition to possibly purchasing the property, a phased development might also work out.

Right now, Stelling said the building would cost about $16-$18 a square foot to lease, including the building costs. Existing downtown and open space in Burlington is much cheaper, and space in Kenosha is leasing at about $12 a square foot.