By Dave Fidlin
Correspondent
City of Whitewater officials last week approved the creation of a fund to help mitigate issues surrounding a failed commercial development at the intersection of Bluff and Elkhorn roads.
In 2006, a firm known as Elkhorn Road Ventures LLC had proposed a grocery store project at the site. But it never materialized.
In the seven ensuing years, the city and Walworth County have been involved in a complex legal matter with Elkhorn Road Ventures LLC.
In an effort to bring resolve to the issue, the Common Council last week voted to create an account to collect funds associated with the failed project. The document secures the county against any losses incurred from failed tax payments.
At the same time, it also reimburses the city for losses sustained from a developer’s agreement that had been drawn up at the time the project was proposed.
As the project was proposed, city officials had to comply with a requirement set forth by the Wisconsin Department of Transportation that required the city install traffic lights or install a roundabout at the intersection to assist with increased traffic patterns.
Eventually, the city installed a roundabout, using funds collected from tax incremental financing district No. 4. A clause in the agreement has given Whitewater the ability to take action and recoup some of the costs associated with the roundabout.
“If the development did not meet the guaranteed values, the developer would make up the difference by paying a PILOT (payment in lieu of taxes) to the city,” City Attorney Wallace McDonell said.
“If the PILOT payment was not paid, the city had the right, under the development agreement, to impose the unpaid amounts as a charge against the property,” McDonell added.
In addition to a grocery store, to have been named the Red Onion, Elkhorn Road Ventures LLC had proposed a gas station and restaurant for the site.
In other business last week, the council:
• Approved an ordinance, authorizing the installation of stop signs at the intersection of Elizabeth and Walworth streets. The signs will be installed in both directions – eastbound and westbound – to alleviate safety concerns.
This was a first reading of the ordinance, but the council agreed to waive a second reading so the signs could be constructed in advance of the start of the school year.
• Denied issuance of a bartender’s license to Franksville resident Sean Mainland. The city’s Alcohol Licensing Committee had met in advance of the regular council meeting and recommended Mainland not receive the license.
• Approved an amendment to the city’s agreement with Monroe-based E & N Hughes Co. concerning the already-in-progress reconstruction of Milwaukee Street.
As part of the city’s change order with E & N, the company has been authorized to reconstruct a small portion of North Ridge Street as well.
The additional work carries a price tag of more than $20,000 and includes laying new asphalt, dumping old materials and grading the new street once work has been completed.
