WAUSAU, WI (WSAU) — Wausau’s Economic Development Committee has approved an amended development agreement for the Foundry on 3rd project, giving developers nine additional months to break ground.
Economic Development Director Liz Brodeck says there are two major factors working against developers these days, necessitating the extension. Those include material and supply issues that have hampered developers for the last three years and the need for cash flow. “It’s not just this developer, it’s not just this project, and it’s not just here,” said Brodeck. “Especially in finding equity investors, that problem is everywhere. They just want to invest in things other than real estate right now.”
The previous agreement had called for groundbreaking to occur by September 1st, just over four weeks from now. If the extension is given final approval from the City Council that date moves to June 1st, 2024.
Representatives of T-Wall Enterprises said they don’t intend to come back to the committee to request another extension for the groundbreaking, saying development is “dynamic. We are always having to adapt because every day something is changing. Whether that’s rates or development costs- there are a ton of different factors. But we are confident in June first- I don’t want to come back to [the committee] to ask for another extension. That’s the last thing I want.”
Brodeck also gave T-Wall a vote of confidence, saying their standing as a large, experienced developer gives her no reason to believe that they won’t deliver for the city. “Given everything that I’ve seen they have [invested]- I have faith this is coming. But we are in a perfect storm of factors right now that are making development difficult.”
The committee voted 4-1 to send the extension on to the full council later this month. Alder Tom Kilian was thet lone no vote.
