For the second time in three years, Northridge Mall's owner is appealing a court decision that upholds a city of Milwaukee order that the long-vacant and dilapidated property be razed.

U.S. Black Spruce Enterprises Inc. hasn't yet disclosed in court filings the appeal's basis, and a company attorney didn't respond to requests for information. The appeal might not actually play a role in delaying an eventual demolition — which could be forced to wait until the city has the millions of dollars needed to knock down the former mall and safely dispose of its asbestos materials.

But it raises questions about Black Spruce's identity, the Chinese company's history at Northridge and why the firm is fighting so hard to hold onto a property that is valued at a tiny fraction of its $6 million purchase price.

Here's what we know:

China-based group bought mall in 2008

Black Spruce's corporate predecessor, U.S. Toward Group Inc., bought the former mall for $6 million in 2008 − five years after Northridge shut down. The property totals around 100 acres north of West Brown Deer Road and west of North 76th Street.

Beijing-based Toward Group, led by Chief Executive Officer Wu Li, in 2009 revealed plans to convert Northridge into a trade mart for Chinese companies selling clothing, furniture, toys, consumer electronics and other goods on a wholesale basis to North American buyers.

That drew skepticism from industry observers about why such an operation would be based in Milwaukee, instead of the much larger and more accessible Chicago metro area, and whether it would generate enough commercial activity to revitalize the 900,000-square-foot former mall.

Indeed, in 2011, Wu told the MilwaukeeJournal Sentinel that financing issues and delays in obtaining necessary approvals for Chinese companies to do business at Northridge had forced Toward to consider alternative plans.

Penzeys Spices sought to use the mall for headquarters

In 2012, an investment group led by Penzeys Spices owner Bill Penzey bought a judgment We Energies held on Northridge's unpaid utility bills.

That gave Penzey the right to pursue a foreclosure claim against U.S. Toward. Penzey planned to redevelop the mall to house his company's headquarters and distribution center.

U.S. Toward initially challenged those proceedings in court before agreeing to sell the property to Penzey, but then backed away from that deal. Penzey's group obtained a foreclosure judgment in 2013.

But, in 2014, U.S. Toward made a $1.4 million redemption payment just days before a court hearing to confirm the results of a foreclosure sale. That meant the company could retain ownership of Northridge.

That led Penzey to speculate that the redemption payment may have been made because of the property's value as collateral − especially if U.S. Toward had new financial backers.

Fast forward to 2019.

City issues condemnation order for the mall

Mayor Tom Barrett's Department of Neighborhood Services issued a condemnation order, saying Northridge's deteriorating condition posed a threat to public health and safety. Milwaukee County Circuit Judge William Pocan upheld that order, dismissing a lawsuit filed by Black Spruce, Toward Group's corporate successor.

The company failed to keep Northridge in compliance with building codes, and evidence showed the mall had "significant safety and environmental hazards," Pocan wrote in his decision.

The ruling also cited Black Spruce's lack of solid redevelopment plans for Northridge.

The company appealed to the Wisconsin Court of Appeals, which in March reversed Pocan's ruling.

The court 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 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.

So, the city went back to court.

And, on Oct. 3, Milwaukee County Circuit Judge William Sosnay ruled the raze order could be enforced.

State law allows a raze order when the estimated cost of repairs exceeds 50% of a building's value. Northridge's assessed value is just over $81,000.

City building inspector Tim Bolger, testifying before Sosnay, 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.

Black Spruce attorney Christopher Kloth, in his questioning of Bolger, tried to show that the city's cost estimates were too high. That could become the basis of the latest appeal.

By the way, Kloth's firm, McDonald & Kloth, began representing Black Spruce in June after attorneys from von Briesen & Roper withdrew from the case. Von Briesen has since sued Black Spruce over an unpaid bill.

Meanwhile, Black Spruce Executive Director Yang Li revealed some information about the company in her testimony at the Oct. 3 hearing.

Yang, who lives in Vancouver, Canada, said Northridge is Black Spruce's only U.S. property.

She also said Black Spruce's shareholders, who live in China, own hotels and other properties in China and Southeast Asia.

Land could be sold for light industrial use

If the city eventually takes ownership of Northridge, either because Black Spruce walks away or through property tax foreclosure, it could demolish the mall and recover some of those costs by selling the cleared land for light industrial buildings or other new developments. 

Mayor Cavalier Johnson, Barrett's successor, "wants a prompt resolution to the Northridge situation," according to a statement issued by the mayor's office.

"It is abundantly clear that the site, in its current disrepair, is a danger and a blight," it said. "Years have gone by with this property deteriorating more and more.  The city will continue to take every reasonable step to rectify the situation."

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: Why Northridge owner fights hard for the vacant, dilapidated site