City is 'cautiously optimistic' about grant deadline for housing atop new center

Oct. 26—EAU CLAIRE — Talks continue between the city and private developers interested in building apartments atop the new Transit Transfer Center currently under construction downtown.

On Tuesday, city leaders said that not one, but two developers are working on the affordable housing to be built on the center.

"We are still working with potential partners," City Manager Stephanie Hirsch said.

One of the developers — Impact Seven of Rice Lake — has been attached to the project since 2021. The second, Merge Urban Development, had been the original party interested in building the housing, but had previously walked away from it. Aaron White, the city's economic development manger, said Merge has recently reengaged with the city on it.

City leaders didn't have a timeframe on Tuesday for when a development agreement, which would firm up details and deadlines for the apartment building, will arrive at the City Council's desk.

But top staffers are anticipating a deal will be done to meet deadlines for a $5 million federal grant the city received for creating a Transit Transfer Center that also has affordable housing.

"We're cautiously optimistic at this point," Deputy City Manager Dave Solberg said during Tuesday's council meeting.

The public portions of the Transit Transfer Center — a ground floor bus terminal with two levels of parking above it — are expected to be largely done this winter with finishing touches made in summer, Solberg said. Counting on a deal being signed soon with a private developer for the housing, the city is making a conservative estimate that the new apartments would be finished in summer 2024.

The grant requires the transit center to be in operation by then and all the grant funding used by 2025.

"If we hit the summer of 2024 timeframe we still are on track to meet the obligations of that," Solberg said.

While the housing is being built, the new transit center will remain closed because it would still be part of an active construction area.

"It would be done, but it wouldn't be open," Solberg said.

Until the new center can be opened, Eau Claire's temporary transfer center on the east corner of South Farwell and Gray streets will remain in use.

Council raves about Costco

Wholesale store chain Costco won unanimous approval from the City Council on Tuesday for a rezoning that will allow one of their locations to be built in Eau Claire.

Slated for a 27-acre lot on Black Avenue, just off the east end of the North Crossing, the 160,500-square-foot warehouse store would be accompanied by a gas station, both for people who sign up for Costco memberships.

Council Vice President Emily Berge said the store will add to Eau Claire's place as a "regional hub" for shopping.

"I've never been to a Costco, but I've heard really good things about it," she said.

Sitting a few chairs away from her, Councilman Roderick Jones said he had previously frequented one of the chain's stores when he lived in Florida and looks forward to one opening in Eau Claire.

"I am a fan of Costco," Jones said.

According to the company's proposal to the city, the new store will open either in fall 2023 or spring 2024.

Councilman Andrew Werthmann said he'd been surprised with the level of support he's gotten from constituents eager for the brand's arrival.

"There is some excitement in our community over this," he said.

Werthmann noted that one of the factors that won his approval was what the new employer will mean to the city's workforce.

"One of the things I was struck with was what this means for our community as far as jobs, good-paying jobs," Werthmann said.

According to Costco's proposal, one of its warehouse stores typically employs 150 to 200 — an even mix of part-time and full-time workers — at opening. The proposal boasts that Costco pays among the highest hourly wages in the industry. It also has benefit packages for full-time employees as well as part-time workers who put in over 23 hours a week.

There are currently 10 Costco stores in Wisconsin, but Eau Claire would be its first location in the northwestern part of the state. The nearest store to Eau Claire at this time is in Woodbury, Minn., which is about 70 miles away.

Other business

Also during Tuesday's meeting:

—Parking fees for electric vehicles that linger in front of public charging stations were adopted by the council in an 11-0 vote. That includes a 50-cent per minute fee for cars that remain parked at a rapid-charging station, starting 15 minutes after the vehicle has been fully recharged.

—The council will allow the Ager House Association to place a Stabbur structure next to the Waldemar Ager Museum, 514 W. Madison St. A Stabbur is a food storage building erected on small pillars or stilts that had been used at old Norwegian farms.

—The Eau Claire County Humane Association, 3900 Old Town Hall Road, was annexed into city limits after previously being part of the town of Washington. The association sought the annexation — which was approved in an 11-0 council vote — so it could connect to city water lines for the fire sprinkler system that will be in a new animal shelter.