Wausau Committee Hears Update on Foundry on 3rd Development

Wednesday, February 7th, 2024 -- 11:01 AM

(Mike Leischner, WSAU) Given the history of discussion and debate regarding Wausau’s Foundry on 3rd development, Tuesday’s update seemed rather mundane.

According to Mike Leischner with WSAU, Nick Patterson with T Wall Enterprises told the committee that the current projections show construction at the site could begin by May 15th, nearly two weeks before the June 1st deadline imposed on the project as part of an amended development agreement approved last fall.

“We’re right on track, all the pieces are moving forward,” said Patterson. Patterson said his team has spent the winter tracking prices for steel, wood, and other construction materials. “We are tracking those constantly so when we buy our materials we can buy them at a low instead of a high. Once we lock in we are stuck with that price forever.”

According to Patterson, steel prices are falling, softwood lumber has risen, and gypsum materials like sheetrock and drywall have held steady. Redi-mix concrete prices were rising but did stabilize late last year. Patterson added that financing for the project is also falling in line.

They are in the final stages of closing a loan for the project with a local bank and have found that the lending environment is much more favorable than last year. “Lending virtually stopped. We had multiple lenders say ‘Great project, but talk to us next year. We just can’t lend right now.’ This year we have a term sheet from a local lender and we are working towards a loan commitment.”

T Wall is also re-bidding some of the aspects of the project to their subcontractors to lock in the best prices. The project saw weeks of discussion and debate last summer after the Economic Development Committee approved the start date extension in early August, only to have the council delay its approval a week later.

That left T Wall in violation of the original groundbreaking deadline for the project, but the council called off legal action while details of the agreement were worked out. The extension was approved in October after weeks of debate and hours of closed-session discussion with the city’s legal team.

Alders also approved an amendment to the development agreement that will allow for balconies on the building and a skywalk. That passed the committee 4-1. Alder Tom Kilian, a long-time critic of the project, was the lone no.

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