Eschweiler Buildings In Abeyance While Public Awaits Proposal

Developer Mandel says buildings have to come down if plan is to succeed, but citizens say that goes unacceptably counter to city's longstanding promise to preserve them.

Sometimes things don't go exactly as planned – and sometimes that's a good thing.

An open discussion Wednesday night of , convened by the County Grounds Coalition, was intended in concept to be a source of creative and productive ideas for preserving the structures.

It turned into a vigorous policy debate, something its chief organizer afterward acknowledged was probably more valuable at this, "the eleventh hour."

She, Barb Agnew, founder of the Friends of the Monarch Trail and a Wauwatosa businesswoman, moderated the meeting and asked at the beginning, and more than once during, and again at the end, that the discussion focus as much as possible on positive, proactive proposals for preserving and using the buildings.

But in a room occupied by about 50 people who were all pretty much either dedicated and passionate preservationists – quite a number of them professionals at it – or current, former or prospective elected officials, the mood clearly was first to dissect public policy and process.

In the end, even with so many already well-informed people present, the outcome was a lot more collective clarity on the matters of...

  • Through what decisions have we have arrived at this point, where there is a serious threat of some of the buildings being torn down? and,
  • What are the mechanisms that would either bring that about or keep it from happening?

Buildings suddenly threatened with demolition

Agnew started with a brief overview of the long history of the buildings and of efforts to preserve and restore them over the past 10 years or so.

As to where we stand now, she reminded everyone, the current owner, the UWM Real Estate Foundation, accepted a redevelopment proposal from residential developer Mandel Group that called for preserving the buildings as part of a larger apartment complex including new construction on the grounds.

Preservation was stated as a requirement in the foundation's request for proposals, published a year and a half ago, but now Mandel has said it can make the project work only if it can demolish three of the four historically designated structures.

Mandel came before the Wauwatosa Historic Preservation Commission on May 3 with an informational presentation – not a formal proposal – in which its team said the buildings were not economically viable and that it could afford to save only the largest one, the Administration Building.

Looking for "constructive ideas from concerned citizens with inputs from experts" to counter Mandel's plan with a viable proposal for preservation of all four buildings, Agnew first turned the floor over to Frank Butterfield, Wisconsin field officer for the National Trust for Historic Preservation.

Butterfield said that based on his experience, Mandel appeared not to have done due diligence before submitting his proposal, if only now he had found that the proposal wouldn't work.

Butterfield likened it to a bad business decision in which someone offered too much for a property and then realized the only way to make a profit would be to do something not allowed by local zoning.

Why, Butterfield asked, should be it the City of Wauwatosa's problem – or for that matter, the problem of the people of Wauwatosa and of Milwaukee County and Wisconsin, whose legacy is in the Eschweilers – to remedy a private investor's poor decision against its own policies?

Representatives of neither Mandel Group nor the UWM Real Estate Foundation attended.

Not a new question, but....

Those policies are and have been long in place, reminded Nancy Welch, who was Wauwatosa's director of community development during most of the last decade.

"The city has taken the position in half a dozen resolutions dating back to the Kubala-Washatko Plan that the Eschweiler Buildings were to be preserved," she said.

The Kubala-Washatko Plan, so-named for the Madison architectural firm that developed it, was a conceptual plan formally adopted by the city that called for preserving the Eschweilers, preferably as an executive conference center serving County Grounds institutions, with the city supporting their restoration through the creation of a tax-incremental financing district (a TIF).

"The TIF is in place," Welch said, "but the city is subsidizing the construction of roads and utilities like water mains and not preservation of the buildings."

Dennis McBride, 4th District alderman, president of the Common Council and a member of the Historic Preservation Commission, acknowledged that Welch was right about the city's past positions, but he said that from a public policy perspective, only the most recent resolution was in force.

That was taken 2½ years ago, he said, and yes, it did call for preservation of the buildings while also allowing new construction on the Eschweiler grounds – and not prescribing the use of the historic buildings, leaving that to the owner and the developer, but ultimately with the city's planning and zoning approval.

"The intention was for the new construction to pay for the preservation of the historic buildings," McBride said.

One preservationist, Jonathan Beck of Alexander Co. in Madison, asked whether Mandel's suggested demolition plan – and the UWM Foundation's silence about it – wasn't an outright "bait and switch," in which UWM wanted to "flip" the property.

Beck suggested that the public, even experts and informed advocates for preservation, had been duped into complacency in the decade-long belief that firmly established public policy would protect the buildings.

Now, he and several others said, preservationists, and simply pure lovers of the County Grounds, were being confronted with the prospect of demolition with next to no time to mount a defense.

Is it Innovation Park or no Innovation Park?

McBride interjected that, from the city government's point of view, a driver behind consideration of any serious proposal Mandel might make was the need for UWM Real Estate Foundation to make its next payment to Milwaukee County, which holds the deed to the property.

"It isn't just the buildings," McBride said. "It is – let's call it 9 acres – of probably the most valuable land in Southeast Wisconsin.

"UWM (Foundation) needs the money from the sale of that land to make its next payment to the county."

That payment, projected at around $5 million, is due in February 2014, with further and smaller installments due in years after, McBride said. It was in the city's interest, he said, that UWM's Innovation Park plan not falter because it couldn't afford the land at the outset.

That only kindled another outcry of, "Why are UWM's fiscal problems our problem?" and for a couple of minutes it was 49-to-McBride.

McBride likes those odds, though, and he stood firmly by the need for Wauwatosa to support UWM's public-private research park development.

It was noted by others that UWM, the academic institution, had gone to the University of Wisconsin Board of Regents asking for funding on the order of $70 million to develop Innovation Park and had been turned down.

That left the university to find private donor funding on its own, and UWM turned the task over to the Real Estate Foundation, a private non-profit corporation that supports the university's mission but is not beholden to its administration.

Suggesting that Innovation Park was to Wauwatosa too important to dismiss, McBride challenged those in the room to come up with a proactive plan: something that would preserve the Eschweilers in a profitable way without nixing or seriously delaying UWM's plans.

Comparing the issue to that of the debate over power lines that has ignited controversy on the city's west side, McBride said that, as in that battle, citizens "need to propose, not just oppose."

Decision-making time is nigh

The trouble with that, preservationists said, is that there is precious little time for anyone to put together a fully fledged – and funded – proposal to counter any that Mandel might soon make.

Mandel is scheduled to make yet another informational presentation at the next meeting of the Historic Preservation Commission on Aug. 1. If principal Barry Mandel stays in the game, he would be expected to finally make a formal proposal to the city in early September, McBride said.

"Everyone needs to understand," said former alderman Jerry Stepaniak, "that the (historic) commission needs to act on any proposal that comes before it. If the commission votes it down, it could come before the Common Council" on appeal.

Stepaniak, like McBride not one to mince words, said that an unfunded counter-proposal would likely fall upon deaf ears, as first the Historic Preservation Commission and, if it refused, then the Common Council has to consider the firm proposal on the table.

It is, after all, the UWM' Foundation's property, he and McBride agreed, not Wauwatosa's, and there is no way that the city can demand that it reopen its request for proposals. It can only act, up or down, on what is before it.

Brian Faltinson, chairman of the Preservation Commission, said that it would have to make a decision within 45 days after first consideration of a formal proposal.

The train has left the station – can it be brought back?

The light that seemed to dawn on everyone in the room not actively involved in negotitions was that time was dearly drawing nigh for some consortium of citizens to put forward a better plan.

Agnew said that her final plea drew a number of people who said they would work to quickly develop a counter to any proposal to tear down any of the Eschweilers.

Speaking after the meeting adjourned, though, Stepaniak said that he agreed with McBride only half-way on the need to make a fleshed-out positive proposal without merely denigrating Mandel's plan.

"Propose, yes," Stepaniak said. "But oppose first, and then propose."

"This train is out of the station and running rapidly up the tracks," he said. "You have to slow it down first and then stop it before you can reverse it and get it back to the station."

jbw July 28, 2012 at 02:55 AM
Call me a skeptic, but if the land and buildings were so valuable and useful then why were there no other parties expressing interest in them before now? I mean where are all the other developers that compete with Mandel? Certainly they are aware of the situation? Perhaps they will appear if Mandel's proposal is nixed and he walks away as he promised? You'd think someone else would have considered similar work there at some point over the last 10 years - unless it just never made sense.
Jane Ahl July 28, 2012 at 03:10 AM
Fly like a Monarch!
Michael J. Matusinec July 28, 2012 at 11:52 AM
Walk away Mandel, scrap this project, give it back to the people who care about the Land an want to protect an save.
Christopher Washburn July 28, 2012 at 02:13 PM
jbw: If the plan "just never made sense" that is Mandel's responsibility...any 'new plan' (hopefully one that conforms to 'state law' regarding preservation of 'historical properties') is the responsibility of the owners and the government, not the responsibility of the taxpayers!
Katherine Collins July 28, 2012 at 02:56 PM
Many would have expressed interest if the current option being entertained, seemingly supported by some of our 'representatives' who are selling out the citizens of Wauwatosa, had been allowable in the first place. The criteria were plainly stated. Why give away our community and its history to poor planning capitalists looking to turn a profit? We, or any of the others for that matter, could have done this on our own, having the profits come back directly to the city, but that's exactly what we didn't want to have happen. Get this train back to the station before our 'representation' derails the train. Is anyone really driving the train??? Allow them to forfeit or sell it back to the city and take some initiative and develop our own plan. Did Williamsburg, or any other well-done worthy historically preserved city depend on the private developers to maintain their integrity? I think not. Take responsibility for seeing out our history into the future.
John T. Pokrandt July 28, 2012 at 03:24 PM
After attending this forum it seems to me that UWM's interests are being put before preservation. There also seems to be a false urgency to the whole process. UWM's payment to the county is not due for another year and a half but we are being pressed to accept a proposal that is little more than renderings right now. If the preservation commission does their job the only vote they can take is a no vote. It should be noted that the buildings comprise a historic district and that district would no longer exist if 3 of the four buildings were raised.
Ilija Potkonjak July 28, 2012 at 06:17 PM
Many years ago Mr. B, my daughter's gym teacher at McKinley grade school, wrote a column in the school news letter. One piece of advice I will always remember, "You Deserve what you tolerate." I hope the City Council and the Building Review Board have a low tolerance for mediocrity.
Absolutelyfabulous July 28, 2012 at 07:23 PM
Mandel most likely never had any intention for preserving these buildings. The key was to get his proposal accepted and then work from the inside out. Barry, I seem to remember you telling the City of Milwaukee that you NEEDED ~$8,000,000.00 in public financing for your downtown development or it wouldn't happen. I believe they kicked you to the curb and ultimately you received a few million less in assistance. After how you have operated in Shorewood and now in WFB w/ your luxury apartment proposals, I hope at least the people of Wauwatosa stand up and make you stick to what you "publically" agreed to.
jbw July 28, 2012 at 08:22 PM
That's about what I thought. But then is the reality that nobody with the means has ever had genuine interest in preserving the buildings? I wouldn't mind being proven wrong, but I guess we'll see soon.
Cassandra July 29, 2012 at 02:06 PM
There has been interest in the buildings with eleven respondents to the UWM RFP. In this case, it is clear that this isn't a matter of Mandel not being able to create a viable project, he doesn't WANT to create a viable project. And as long as the Common Council works to serve developer interests rather than supporting the interests of Wauwatosa's citizens, he won't have to.
Absolutelyfabulous July 29, 2012 at 04:15 PM
Unless the people who are upset about what has/is happening come out in force and are vocal and draw as much attention to the situation as possible via every possible outlet and just keep hammering away no matter what obstacles they put up/lies they throw at you..You don't stand a chance.
Cassandra July 29, 2012 at 07:37 PM
Speaking of obstacles, it's time for Brian Faltinson to recuse himself as Chair of the Historic Preservation Commission for the duration of this process. He is clearly skewing the process in favor of Mandel and clearly has a conflict of interest because he works for a company that is part of the Mandel development team for this project.
Absolutelyfabulous July 29, 2012 at 09:04 PM
Cassandra- In Shorewood, where over $9,000,000 was approved via grants/TIFs etc for Mandel's Luxury development (w/out any say or ability to have any inout from the residents), he was smart enough to utililze the services of one of the Board of Trustees, (who just happened to be a project manager for the architecture firm that was selected for the development) that voted for the approval of not only the project, but also all of the financing involved. Work from the inside out and keep those soldiers happy. Posting on this board/forum will do nothing. Coming out in force, attracting media and putting the spotlight on what has/is happening might rattle a few feathers, but you're speaking to the wind if you think this blog will accomplish anything.
Brian Faltinson July 30, 2012 at 02:22 PM
My employer does have Mandel as a client, but I have not worked on the Eschweiler project -- the specific nature of work my employer did for Mandel was to explore the use of historic preservation tax credits. My employer only stands to gain if Mandel uses those tax credits -- which they do not appear to be considering at this time. They cannot get such credits if they tear down any of the four Eschweiler Buildings (the powerhouse is exempt). I made my potential conflict of interest known when I was reappointed chair by all fellow commission members in Feb 2012. I announced my potential conflict of interest at the very first Mandel presentation in May 2012 and stated at that time that I will not be voting on the issue. I also made the full extent of my potential conflict of interest known the mayor, who was still on the HPC at the time of my reappointment, and the city attorney with regard to my chairing meetings that involve Mandel. Both of whom agree that I am following both the intent and spirit of the recusal process.
Cassandra July 30, 2012 at 03:09 PM
It is not surprising that the City Attorney could find some interpretation that allows you to remain as an advocate for a project that has very close ties to your employer. Let's not forget that your company was part of the team that presented at the first Historic Preservation Commission meeting and pushed for demolition of the buldings. And, there was a push to approve demolition even though it was later admitted that no application was in place. Most ethical persons would step down, but there seems to be dwindling interest in ethical behavior and supporting public interest at City Hall these days.
Absolutelyfabulous July 30, 2012 at 09:15 PM
Really, 1.5 years go by since the RFP goes out to developers clearly stating that preservation is part of the package and now when TIME IS OF THE ESSENCE and the clock is ticking all of the sudden Barry Mandel & Co., the largest residential developer in the area, just happens to let it be known that certain buildings can't be saved. Please, I have a hard time buying that story. It would not have taken long at all for Mandel & Co. to go in and do an assessment of the buildings and crunch numbers. Oh, I would love to see what they propose the cost to rehab these buildings would be vs an outside independant professional opinion and the comparisons being apples to apples. Just being played by Mandel and knowing that stringing this process out and coming in at the last minute gives him the upper hand. Seriously, has anyone called the news stations, started up a separate blog w/ the history of these buildings, all documents relating to the preservation..The time to start is not while waiting to hear from Tosa/UWM/Mandel. You need to start yesterday and really get up to speed and word out via as many outlets as possible to draw attention to what has/is happening. That is if you want any possiblility of saving these buildings or maybe they move them to another location. I don't know what the main goal is to save or save in place, but you have to be proactive and get jump start since you're already way behind the 8 ball as it currently stands. Do the unexpected.


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