Judge rejects Milwaukee's request to give it ownership of former Northridge Mall--for now.

A judge has rejected a request to turn ownership of the former Northridge Mall to the City of Milwaukee.
A judge has rejected a request to turn ownership of the former Northridge Mall to the City of Milwaukee.

The dilapidated, long-empty former Northridge Mall will not be taken over by the City of Milwaukee − at least for now.

Milwaukee County Circuit Judge William Sosnay on Friday rejected the city's request it be granted ownership of the former mall, at West Brown Deer Road and North 76th Street.

Sosnay said accepting that request would be "contrary to the court's authority" as Northridge owner U.S. Black Spruce Enterprise Group Inc. is appealing a city demolition order.

However, Sosnay said he might reconsider the matter depending on the outcome of a decision from the Wisconsin Court of Appeals. That ruling could come this summer.

Meanwhile, an affiliate of commercial real estate operator and developer Phoenix Investors LLC's purchase offer for Northridge expires May 1. But a change of ownership wouldn't apparently halt the city's four-year effort to raze the mall.

"The City of Milwaukee had hoped for a different outcome, as we envision a future for the former Northridge mall that creates meaningful benefits, activity, and prosperity," said a Department of City Development statement to the Milwaukee Journal Sentinel.

"Given the size and location of this site, we know the area has great potential to be an important economic hub for the community, and we're prepared to capitalize on that potential," it said.

The future uses of this location will set the tone for the surrounding area.

Phoenix Chairman Frank Crivello didn't immediately respond to a request for comment on Sosnay's decision, and the status of his firm's plan to buy Northridge.

The city attorney's office in January asked Sosnay to transfer the 100-acre property's ownership from Black Spruce.

That request was tied largely to Black Spruce's failure to comply with Sosnay's order that the property be secured to prevent people from breaking into the mall and setting fires and doing other damage.

It also would allow the city to enforce a 2019 condemnation order against Northridge. That order was stayed by Black Spruce's successful appeal before city officials in 2022 returned to court with a new procedure.

That resulted in Sosnay's October ruling that the city could proceed with demolition efforts even as Black Spruce filed a new appeal.

At a March 17 hearing it was disclosed that Phoenix Investors had agreed to buy Northridge.

City officials expressed skepticism about Phoenix Investors' plans, but Sosnay urged them to talk with the company's representatives.

A few weeks later, city officials said in a court filing that the firm wanted to use Northridge mainly for industrial storage. Officials from Mayor Cavalier Johnson's administration said they opposed those plans − and wouldn't support a zoning change to allow them to proceed − because they wouldn't create enough jobs.

If the city acquires Northridge, it would need to raise an estimated $15 million to demolish the former mall and safely dispose of its asbestos.

Deputy City Development Commissioner Vanessa Koster testified Friday that the city is ready to raze Northridge.

Koster also said she was "not aware" if the city had secured funding for demolition. City officials have said they're seeking grants and other sources to pay for that work.

Meanwhile, Phoenix has taken over security for the site and has largely secured Northridge to prevent break-ins while also doing clean-up work, according to city inspection reports filed with the court.

Sosnay told Li Yang, a Black Spruce director who appeared at the hearing, that her firm was still ultimately responsible for making sure the mall remains secured.

Yang, under questioning by Sosnay, said there's no debt on the property and that Black Spruce owns hotels and other properties in China and Southeast Asia. Sosnay said that showed that the company has the financial resources to secure and maintain Northridge.

Northridge closed in 2003. It was sold in 2008 for $6 million to Black Spruce − which Yang said initially wanted to use it for processing corn to produce ethanol until that idea was rejected by city officials.

Black Spruce later announced plans to redevelop Northridge as a trade mart for Chinese firms selling toys, furniture, clothing and other goods on a wholesale basis to U.S. retailers. But those plans failed to proceed.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on InstagramTwitter and Facebook

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This article originally appeared on Milwaukee Journal Sentinel: City's request to take ownership of Northridge Mall rejected by judge

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