Council Puts the Brakes on Deal to Raze Downtown Buildings

The Port Washington Common Council  Monday unanimously voted to hold off on approving an agreement between the city and  Port Harbor Investment LLC that calls for the demolition of two historic downtown buildings.

Port Harbor purchased the former M&I Bank buildings at 122 N. Franklin St. in December 2007, with plans to renovate the area into a more useful downtown structure. But the buildings are in disrepair and pose a potential danger to people walking by them.

Port Harbor never followed through on its promise to repair the buildings and the city filed a lawsuit in November 2008 asking that the buildings be  declared a public nuisance, which meant a judge could order it repaired or razed.

“The city has waited, waited and waited for renovation,” said City Attorney Eric Eberhardt, who recommended that the council approve the settlement.

Eberhardt said he believes the developers had good intentions when they purchased the property.

The agreement calls for the owners to raze the buildings at their own expense. They would be allowed to choose a demolition team of their choosing, as long as they met the requirements of a building of that size.

Under the deal, Port Harbor would be responsible for the entire cost of the demolition, as well as repaying receiver fees of $5,783 and receiver consultant fees of $3,800. Port Harbor would have to pay $7,500 toward the city attorney's fees.

“The city will not suffer any out of pocket expenses,” Eberhardt assured the council. 

Still, council members weren't sold on having the buildings torn down. And aldermen tabled action on the agreement at Monday's special meeting to give them more time to review their options.

Alderman Jim Vollmar said he understood how a dilapidated building with no tenants looks bad for the city, but said it was equally bad for the city’s image to have a vacant lot left after the demolition.

“It’s a conundrum for me,” Vollmar said. “The buildings have some historical significance.”

He said if the buildings were razed it would only add to the city’s already tarnished image.

“It will make the city look like it’s in an even greater economic decline, and I don’t want to promote that," he said.

Alderman Thomas Hudson said he would like the council to look into the option of using its powers of eminent domain to acquire the property.

“They’re not going to sell it,” Hudson said of the owners. “It’s a real shame. It’s (the building) deteriorating and has an owner who apparently doesn’t care.”

Port Washington City Planner Randy Tetzlaff said Port Harbor wants in excess of $900,000 for the property, and that the costs to a prospective buyer could come closer to $1.4 million after settlement costs.

Mayor Scott Huebner said an unofficial assessment of the land was about $156,000, with a total value between $200,000 and $300,000.

Huebner went as far as to say the owners of the building have "wrecked the town."

“If we charged the maximum fines possible, they may be more willing to deal,” he said.

Huebner said if the city could get "someone to do something with the building," Port Washington be better off in the long run.

“This building fits in our downtown," he said. "We have time to look at other options.”

Eminent domain was mentioned at least twice by different aldermen on Monday. Eberhardt told the council that type of move could drag things on for as long as three years. 

The buildings are listed in the National Register of Historic Places in Wisconsin, and are 105 years old, but are not designated as national historic sites or landmarks. Only the north building is considered as contributing to the historical value of the property.

Geri Zehren, who has lived in Port Washington her entire life, pleaded with the council not to tear down the buildings.

“When you vote, I hope you’ll consider what you’re doing,” she said. “To tear down these buildings is unconscionable."