Village discusses next steps for Milk House property

Following the monthly staff reports and updates for July, the Village of Osceola Board meeting went into closed session pursuant to Wisconsin Statute 19.85(1)(e) to deliberate or negotiate the purchasing of public properties, the investing of public funds, or to conduct other specified public business for competitive or bargaining reasons.

The committee continued in closed session proceedings pursuant to Wisconsin Statute 19.85 (1)(c) to consider employment, promotion, compensation or performance evaluation data of any public over which the governmental body has jurisdiction or exercises responsibility.

A motion was made by Village Trustee Deb Rose and seconded by Trustee Holly Walsh to come out of closed session proceedings at 8:53 p.m.

Roll Call Vote:  Ayes-Buberl, Burch, Chantelois, Gilliland, Lutz, Rose, Walsh  Ayes-0 . Motion carried. 

Rose made a motion that was seconded by Village Trustee Brad Lutz to have the Village Administrator take the steps discussed in closed session in regard to the Milk House property. 

Ayes-7, Nays 0. Motion carried

In November 2021, the property located at 101 N. Cascade Street suffered a major structural failure causing immediate closure of the Cascade Falls Trail Head. According to a notice on the Village website (updated April 2022), “Not only did this create an unsafe situation for visitors, it also caused two successful businesses to close. The Village of Osceola in partnership with the impacted property owner, State of Wisconsin and local partners are developing a solution to stabilize the site and reopen the trail head. Unfortunately due to the unique site constraints and complexity a quick solution is not apparent.”

The local closure continues to include the upper deck, stairs, lower landing and all access to the immediate area from Cascade Street. The Village designed a map to provide location of the closure and alternative routes available to Cascade Falls.

The public notice explained, “While the Village does not anticipate any issue occurring, the safety of our community and its visitors are paramount. The notice shall prevail until such a time when Village representatives are assured the area is safe.”

During the Village Board meeting in May, property owner Lisa Erickson appeared before the Board to give an update on the building she owns at 101 N. Cascade Street.

Erickson gave a power point presentation including the history of the Wisconsin Milk House business. Some retail space was rented to a hair salon, there was a two-bedroom residential apartment upstairs, and an Air B&B in the back. Erickson owns all three buildings and some feet in front of PYs. The property line is 12’ in front of the waterfall. 

On Nov. 4, 2021, a main water pipe broke and compromised the foundation. Utilities are detached including electric, water and sewer. Erickson has been in the building and nothing has moved inside, but outside the foundation continues to sink. Erickson stated she has no options as engineers have determined the building must come down. Erickson also spoke about the proposed rebuild featuring artist loft apartments with waterfall views, two new retail spaces, two offices spaces, a boardwalk and connecting parking lot. Erickson has contacted the State and various entities for help. Challenges with the site and rebuilding are erosion, sidewalk, the state highway, PYs, DNR, the building age and access. Erickson stated her insurance is limited as it was not processed correctly. 

Estimated demolition costs are $425,000, and $1 million to backfill. To rebuild is estimated at $1-3 million. During her report at the May meeting the next steps were to resolve insurance issues, secure additional funding, continue to work with state and local officials and stakeholders and garner support. 

Village Board members had questions that Erickson responded to. Various options for the Village to assist in the project were discussed, such as expertise, grants and Tax Incremental Funding (TIF). At the time, Village Administrator Ben Krumenauer explained that he had been working with Erickson to produce ideas, as some traditional funding is not available. 

The property is not in a Tax Increment District (TID) #3 and TID #2 is past the expenditure period and is distressed. It is too late in this cycle to apply for State Tourism grants. “It comes down to private dollars, with grants as a possibility. The Board could decide on Village budget appropriations, but the question is can we afford to do that without jacking up the tax rate.”

Krumanauer also explained, “Because general obligation debt cannot be used for private business, the Board cannot borrow funds to help.” All Board members agreed on the value of the business and stairs to the falls. Village President, Jeremy Buberl suggested a subcommittee be created to assist in producing creative solutions, getting grants and updating. 

In June a small group of Village officials met for a listening session with the property owners. “The building owners are still looking into the financial costs of a viable building; it is expected that cost would be exceedingly high. They are requesting funding assistance from the Village of 25-30% of the projected costs.” Meeting minutes from the Village Board in June stated, “The Village group did not support this. They are looking to get the building down and solidify/stabilize the site. Village President Buberl stated discussion on this private issue is only happening because of the location and impact to the stairs down to Cascade Falls. The early December 2021 Village inspection action was in response to the safety of the structure, long-term it must come down and it cannot be used or occupied.”