City of Peshtigo approves borrowing plan for demolition of Landmark property

PESHTIGO – The City of Peshtigo Common Council held a special meeting on Sept. 15 regarding the fate of the Landmark property.

The Landmark property — located at 310 Oconto Ave. — previously underwent required asbestos abatement and environmental assessment work before demolition could be considered. However, no additional grant funding was available once the property was ready for demolition.

During the special meeting, discussion was held regarding the condition of the Landmark building and whether the city should fund the demolition through a tax levy or delay the project while pursuing additional grant funding.

City of Peshtigo Mayor Katie Berman explained that the original Site Assessment Grant (SAG) award of $116,000 was primarily used for asbestos abatement. Approximately $29,266 remains in the grant award.

The low bid for demolition was submitted by Peters Concrete for approximately $181,000. If the remaining $29,266 in grant funding is authorized for demolition, the city’s anticipated cost would be around $152,000.

Mayor Berman explained that the city was considering borrowing up to $200,000 to provide adequate funding for demolition, remediation, and contingency costs. The intent would be to borrow only the amount ultimately necessary once final costs and the status of the remaining grant funds are known.

The potential tax impacts of demolition were discussed. Based on the city’s approximately $226.7 million in assessed value and a $200,000 borrowing, the preliminary calculation presented was approximately $88.23 per $100,000 of assessed property value. The council clarified that the actual impact would be proportional to each property’s assessed value.

According to a report read by Berman, the Landmark property has experienced active water intrusion — including standing water in portions of the building and basement — damaged and falling walls and ceilings as well as holes and uneven areas in the flooring, resulting in areas considered unsafe to access. Concern was also expressed that additional roof or floor failures could occur with continued weather exposure or heavy snow.

The council invited members of the public to submit their comments via email or speak in person at the meeting.

Susan Bero spoke in opposition to demolishing the Landmark building at this time due to the potential impact on property taxes. She encouraged the city to consider alternative funding options, including fundraising, seeking a lower demolition cost or continuing to pursue grant opportunities.

Similarly, Chelly Winkler asked if the city had exhausted available grant opportunities and whether other funding sources could be pursued.

The council discussed the alternative of delaying demolition and pursuing future grant funding. The next realistic opportunity to apply for another State SAG award would likely be in 2028, with no guarantee that additional funding would be awarded. Federal brownfield funding was also discussed; however, those programs generally serve substantially larger contamination and redevelopment projects.

Council members discussed safety and liability concerns associated with unauthorized entry, injury, fire or further structural collapse.

City Attorney Spangenberg advised that fencing, insurance coverage, and statutory liability limitations may help reduce the city’s responsibility, but would not eliminate the possibility of legal or financial costs resulting from an incident.

If the building were to be left standing, the council estimated a cost of $5,000 annually for fencing, monitoring, consulting, administrative, maintenance, policing and security-related expenses.

Council members also discussed the possibility of selling the property for redevelopment after demolition and environmental closure to offset associated costs. Berman said that, if approved, demolition could potentially occur this fall, followed by environmental restoration beginning before the end of the year.

Following confirmation that environmental requirements have been satisfied, the city could begin pursuing redevelopment or sale of the property.

After discussing the residents’ concerns and weighing the different options, the council approved borrowing the necessary amount — up to $200,000 — for the demolition and remediation of the Landmark property.

The motion carried 4 - 1, with alderperson Keith Klimek opposed and alderperson Robert Warren excused due to illness.