Milwaukee's 3-year effort to raze the former Northridge Mall, paving the way for that site's eventual redevelopment, is back on track.
A three-year effort to force the former Northridge Mall's demolition, paving the way for that site's eventual redevelopment, is back on track.
Milwaukee County Circuit Judge William Sosnay on Monday granted the City of Milwaukee's request to enforce a raze order issued in 2019 against the dilapidated shopping mall.
Sosnay also agreed to a city request for sanctions totaling $109,000 against property owner U.S. Black Spruce Enterprises Inc. for failing to secure Northridge.
It isn't clear when the former mall on Milwaukee's far northwest side would be razed.
That work could cost the city millions of dollars if Black Spruce walks away from the property, with the city obtaining it through foreclosure.
The city could recover some of those costs by selling the cleared land for light industrial buildings or other new developments.
Black Spruce representatives declined to answer questions, including whether it might appeal Sosnay's decision.
"The evidence in the record is overwhelming," Sosnay said.
Arson, trespassing problems
The judge ruled after hearing testimony from city officials, include Fire Chief Aaron Lipski, about Northridge's state of disrepair as well as its lack of barriers to trespassers entering the building.
The resulting problems include four fires in July and August, which Lipski said were the result of arson.
Also, building inspector Tim Bolger estimated it would cost $7.3 million for repairs to bring the property into compliance with the city's building code standards for vacant buildings.
State law allows a raze order when the estimated cost of repairs exceeds 50% of a building's value. The property's assessed value is just over $81,000.
Milwaukee County Circuit Judge William Pocan in 2020 dismissed the Black Spruce's lawsuit challenging the city raze order.
The company failed to keep Northridge in compliance with building codes, and evidence shows the deteriorating 900,000-square-foot mall has "significant safety and environmental hazards," Pocan wrote in his decision.
The ruling also cited the company's lack of solid redevelopment plans for Northridge, and called its proposal "more of a vision at this point."
But the Wisconsin Court of Appeals in March ruled that Pocan's decision was improperly based on the cost to repair Northridge to comply with code requirements for developed buildings — even though it's currently vacant.
As a result, the city's estimated cost included repairs to heating, plumbing and electrical systems needed to open the mall to the public — instead of more limited work, according to the decision.
Even under that more limited scope, the estimated repairs cost still meets the state's standard for a raze order, Sosnay said Monday.
Black Spruce attorney Christopher Kloth, in his questioning of Bolger, tried to show that the city's costs estimates were too high.
Related: A longtime Racine manufacturer is moving its offices to Milwaukee's Historic Third Ward.
Owner claims plans are underway
Also, Li Yang, Black Spruce executive director, testified her company was finalizing plans to secure Northridge.
That would be done in part by installing outdoor cameras that could be used to monitor Northridge's entrances 24 hours a day, Yang said.
Yang, who lives in Vancouver, Canada, said Northridge is Black Spruce's only U.S. property.
She said Black Spruce's shareholders, who live in China, own hotels and other properties in China and Southeast Asia.
Northridge, totaling around 100 acres north of West Brown Deer Road and west of North 76th Street, closed in 2003.
It was sold in 2008 for $6 million to Black Spruce, an affiliate of a Chinese investment group.
Black Spruce says it wants to create a trade mart for Chinese companies to sell clothing, toys, furniture and other items to U.S. retailers.
Yang said $8 million has been spent at the property on maintenance, repairs, design, legal fees, local contractors and property tax payments.
However, Yang also said the company stopped making property tax payments in 2019 after the raze order was issued.
Sosnay's ruling included a requirement that Black Spruce pay $109,000 to the city —most of that from a $2,000 daily fine dating to Aug. 19 for not properly securing the mall.
That amount also includes around $17,000 for police and fire personnel costs from responding to service calls.
Sosnay said that fine will continue to grow by $2,000 daily until Northridge is secured. He cited the danger to both first responders and the public.
"This is something that should not go any further," Sosnay said.
"I will use all the resources I have to get you to do what the court has ordered," he said.
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.
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This article originally appeared on Milwaukee Journal Sentinel: Milwaukee effort to demolish former Northridge Mall back on track
