Wisconsin Builder | City Lights | Negotiating Growth

NEGOTIATING GROWTH

Downtown Eau Claire development hinges on deal

$20 million in projects wait in the wings

By Sean Ryan

This old Soo Line Railroad depot is no longer around. The city tore it down to make room for a $1.8 million office building for architectural and construction management firm PMSI. PMSI bought the lot, located on the Eau Claire River, for $300,000.

Downtown Eau Claire hasn't seen much action since two office projects kicked the city's redevelopment into a short-lived overdrive a few years ago.

But that lull could end this summer, as city planners are a handshake away from bringing $20 million worth of projects into the city.

"There's a lot riding on it," said Mike Schatz, Eau Claire's economic development administrator, executive director of Eau Claire's Redevelopment Authority and executive director of Downtown Eau Claire Inc. "It's been a long time since someone came along and offered to put $10 million into the downtown area with the potential for a second site for another $10 million building."

Three years ago, PMSI, an architectural and construction management firm, completed work on its new $1.8 million headquarters and $1.2 million Wisconsin Health and Human Services Department office, both in downtown Eau Claire. A third office building opened in 2000, but this summer, PMSI's Construction Manager John Peterson said he is wondering when more businesses will move in.

"There was quite a lot of activity (during construction) with people coming by to check it out," he said. "It was such an ugly area and when we got done it was a nice-looking deal. That was a real fun project for me. I'm surprised they don't have more development downtown."

Planning to grow

PMSI's Eau Claire headquarters is the centerpiece of a $4.5 million downtown redevelopment that includes a Wisconsin Health and Human Services Department office and a riverfront bike path. After creating a tax-incremental finance district in the area, the city could afford to repave a parking lot in front of the building and lay a public bike bath connecting the offices.

City planners are trying to answer Peterson's call through negotiations with Royal Credit Union to put its $10 million headquarters on an 18-acre renovated dump across the Eau Claire River from PMSI. If Royal Credit moves in, Eau Claire would be able to spend $3.9 million to turn the remaining lot space into Phoenix Park, a public riverfront park.

"The tax base of a $10 million building brings values up," Schatz said. "We feel that combining the park improvement and the development is the best way to go because if you just do the park, you have no way to pay for it."

Peterson said he also had high hopes for the project because Royal Credit prefers to use local contractors, and PMSI could be in the running for the project.

"I know they would try to hire a lot of local contractors to work on it because they'd probably be clients," he said.

The city and Royal Credit should reach an agreement by the end of July, Schatz said. If Royal Credit builds its headquarters downtown, he said it would spur Eau Claire's second wave of redevelopment, which would include a second $10 million Royal Credit office.

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