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Published - Thursday, June 26, 2008

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LHI to break ground for third building in spring


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Logistics Health Inc. Chairman and CEO Don Weber will start construction early next year on a third Riverside Center building in downtown La Crosse, he announced at Wednesday’s Downtown Mainstreet Inc. annual meeting.

The building will provide additional office space for LHI, but part of it probably will be leased to other businesses, he said later in an interview.
Work will be completed by early 2010 on the Riverside Center III building, which will be east of and across Front Street from his second building, Weber said.

Weber also said more than 1,000 people will be working in the first two Riverside Center buildings by the end of this year, and more than 2,000 people will be working in the three buildings two years from now. He and his wife, Roxanne, are the principal owners of Riverside Center LLC, which owns the buildings. The Webers also own The Waterfront Restaurant & Tavern on the first building’s ground floor.

The first building houses LHI’s offices, and the second building is being leased to Business Objects, Kaplan Schweser and Kaplan Financial Education.

“With some of the contracts that we now have and several in the pipeline, we feel we’ll have close to 1,000 employees within two to three years,” Weber said of LHI. It will have about 700 employees by the end of this year, Weber said.

“I really would like to see LHI expand into it as much as possible,” Weber said of the third building. But three businesses that would bring jobs to La Crosse also have expressed interest in leasing space, he said.

“The footprint of the (third) building is much larger than either of the existing buildings,” Weber said. “The first three levels will be parking. The balance of the building will be office space,” with the number of floors yet to be determined, he said. “On three or four floors (of office space), we can get as many employees as we can on six (floors) in one of the other buildings,” he said.

An artist’s sketch of what the third building may look like was on display Wednesday and showed three floors of office space on top, with three floors of parking below.

Construction of the third building also means a new downtown parking ramp will be needed in the area, Weber said.

The most logical location for a new city parking ramp seems to be the Radisson Center parking lot, Mayor Mark Johnsrud said later. The city parking lot west of Hooter’s Restaurant also is a possible location, he said. “That’s going to have to be pushed to the forefront,” he said of deciding on a site and timetable for another parking ramp.

“It’s fantastic news,” Johnsrud said of plans for Riverside Center III. The three buildings together will represent about $50 million worth of development, he said.

“LHI continues to grow and look for opportunities,” said keynote speaker Tommy Thompson, the former Wisconsin governor who also is LHI’s president.

La Crosse has great educational and health care institutions, Thompson said, adding, “This is a very special place to live and to work and to play.”

Steve Cahalan can be reached at (608) 791-8229 or scahalan@lacrossetribune.com.
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Myturn wrote on Jun 27, 2008 12:12 PM:

" Who in their right mind could believe this conglomeration of shakers anyway? "700" employees. They built Building Two exclaiming the need for growth of LHI employees. There are basically none in that building. We have indeed watched as they moved local commerce and tenants from pre-exiting local area buildings into new shiny, subsidized, one-of-a-kind riverfront parcels. The Mayor told us in September that there were 700 LHI employees, FALSE. It appears the third building will be TIF subsidised for 27 years as well, and it will be set up as a, 'REVERSE TIF'. Lastly, you and I as taxpayers will build and/or subsidize a parking ramp for this landlord, and proselytizer of local tenants and commerce to his $1.00, 27 year amortized sites. "

Im Still Jackson wrote on Jun 27, 2008 9:32 AM:

" How about this one for example. THANK YOU S&S CYCLE for relocating your factory/ buisness to LaCrosse and occupying some prime vacant realestate on YOUR OWN DIME and growing your business here in LaCrosse providing and creating good paying real skilled labor jobs along with bringing a historic event to LaCrosse with your 50th Anniversary Celebration unmatched by no other event in the past. THANK YOU for doing buisness the AMERICAN WAY! Thank you for putting LaCrosse back on the map and making it a definate stop on the road to Sturgis for years to come. "

Im Still Jackson wrote on Jun 27, 2008 9:20 AM:

" Its medical record management of the military personel. Thats the only service LHI provides. Govt wastefully spending 100's of millions $$ to shuffle paper around and file electronic data conversions that the private sector such as Gunderson hire people to do working at home.
Its amazing how in the managed care circles the only people with excellent coverage are the rich and elite or the Govt employed where in the private sector there are 60 million people without coverage at all which means thats 60 million patients that no one manages to care about. These parasites have used what was once the greatest medical providing country as a cash cow ie: medicare fraud through hospital trick billing practices ect and dilluted it to a micromanaged insurance dominated minumum care gatekeepered roadside medicine stand of extortive pharmacuetical companies and corporate welfare by govt contract and blind eye billing practices. "

Common-cents wrote on Jun 26, 2008 9:30 PM:

" Thanks for everything you do Mr. Weber. Mr. Weber brought good paying jobs to the area and all you people do it bitch.....shame on you.
I have a friend who thought LHI was a tax nightmare, and then his wife got a great paying job there. You should hear him now....lol.
Thanks Again MR.Weber, over 90% of Lacrosse residents love what your doing. "

Balanced Budget wrote on Jun 26, 2008 8:29 PM:

" Time will prove the horrible job the Mayor did. Welfare for the rich=Higher taxes for the poor. "

Hollywood7 wrote on Jun 26, 2008 8:19 PM:

" BGS- you obviously have a grudge. Let it go. Stop speculating and leading the "rumor" charge. I'd love to sit down and have a beer with you and discuss.
I'll pray for you. "

Hollywood7 wrote on Jun 26, 2008 8:16 PM:

" If the congressman leading the charge is so important you should of spelled his name correctly the first time. California....hmmm. Same story. He heads a district of one of LHI's competitiors.

He "Lead" the investigation. I believe it was dismissed. Can't wait until 2 yrs so we can "mark" your words.
Why the grudge? You big baby! "

Hollywood7 wrote on Jun 26, 2008 8:13 PM:

" BGS- did the other companies under bid the contract because they did not understand the all of the requirements. Remember, it was LHI's contract for the last 5+ years, it was up for re-bid and they won. They won probably because they understood the requirements and because of their performance on the contract that they had for the last 5 years.
They had do work that no other company had done before. So with that said, do you want me and my brother building your house for $50k (we have no experience) or do you want a experienced contractor to build it for $75k? "

BrianGSmith wrote on Jun 26, 2008 7:40 PM:

" LH1 is a scam ripping off US TAxpayers. Anyone here know anyone who works in either of the two LH1 buildings for LH1? Didn't think so. "

BrianGSmith wrote on Jun 26, 2008 7:38 PM:

" Dear Hoolywood 7...Three months after Logistics Health Inc. hired a Bush appointee who had supervised military health programs at the Pentagon for six years, Logistics won a $790 million medical services contract. Logistics, which is headed by Bushs former Secretary of Health and Human Services, Tommy Thompson, was underbid by two other companies but still won the contract. The two competing firms have filed a complaint with the Government Accountability Office and California Congressman Henry WAXMAN is leading the investigation. "

Hollywood7 wrote on Jun 26, 2008 6:03 PM:

" Also, I'm a hardcore Dem and can't really stand the Bush Admin. But, LHI is a local company that is doing well and I hate to see haters like yourself and other (Waxler) bash a fast and growing company that is taking care of our service members.
Please learn how gov't contracting works, typically there is a independent panel that makes the decision. "

Hollywood7 wrote on Jun 26, 2008 6:01 PM:

" BriaG Smith, thanks for bringing that up. You've helped my case. I did some research on Robert (Henry) Wexler, he is the congressman for the 19th District in Florida. If you go to FedSpending.org you will see that he represents the same district that has one of LHI's biggest competitor. I will let you figure it out. He got pressure from them to push for an investigation as they help finance his campaign each year. He is a typical sore loser that I mentioned before. He lobbied for his company, and he lost. He also pushes for the Bush Press Secretary Mc Clellan to testify about the Bush Admin. "

bb wrote on Jun 26, 2008 3:55 PM:

" Good for them (I guess), but why doesn't some business use the old Heilemen building on riverside park? Seems like a huge waste to build another building when one sits empty (and one with some parking by it) "

Philly wrote on Jun 26, 2008 3:02 PM:

" Smith, you very well could be right. Where you are wrong or very naive is to isolate this type of action as a "republican government" situation. If indeed the allegations are true and LHI received this bid illegally, don't simplify this type of action as "republican government". If you think under-the-table, back alley type deals don't include democrats, you are out of touch. "

Darwin wrote on Jun 26, 2008 12:35 PM:

" Bring it, Smith.

And it doesn't take a business genius to know the advantages of owning a property as one business and renting it back to yourself. "

BrianGSmith wrote on Jun 26, 2008 12:29 PM:

" Dear Hollywood 7.....Think or research before writing. Logistic's Health's original $790 million contract is under investigation for fraud. See Congressman Henri Waxler for details. They (LH1)put in a high bid with another partner and won the bid despite the quality bids of others below their bid (LH1) and the partner of the LH1 bid dropped out. It is the incestuous swinging door relationship between the republican government and the corporate world that robs the USTaxpayer. In two years Logistics Health will be a sad footmark.....mark my words. "

Mack wrote on Jun 26, 2008 11:57 AM:

" asoccer, thanks that explains remarks Weber has made that these buildings will be condos in the future. "

asoccer wrote on Jun 26, 2008 10:38 AM:

" EVERYBODY IT IS NOT LHI IT IS RIVESIDE CENTER. THERE IS RIVESIDE CENTER NORTH, RIVERSIDE CENTE SOUTH, AND SOON TO COME RIVERSIDE CENTER EAST. NOT LHI 1 AND 2 AND 3. "

asoccer wrote on Jun 26, 2008 10:34 AM:

" Does anybody understand that LHI does not own any part of these buildings, in fact LHI has not donated nor payed for anything but rent for space in the 1st building. The Weber family owns these buildings and has put all of the money down to pay for these buildings themselves with some other investors. So nothing from these buildings go towards LHI's bottom line, it is exactly the opposite. And as far as the new building, it would not even touch the Raddison's parking lot. Riverside Center owns the parking lot on which the new building/parking ramp will go on. Will people get their facts straight before posting random facts that they interpret into their own words? "

Near South Sider wrote on Jun 26, 2008 9:58 AM:

" Weber is no angel and he does not walk on water - however, bringing jobs (construction and office jobs) to La Crosse is good for our city. Yes, Weber is in it to make money - but if he doesn't make it here he'll make it somewhere else. We need jobs in La Crosse. "

pinky wrote on Jun 26, 2008 9:40 AM:

" I'm glad to see this new building has included parking. However, with it being located on Radissons current parking lot, will they offer parking to the people working in the LHI buildings or just to Radisson patrons? There will be a huge problem with on-street parking when adding even more people in that location. (I heard a rumor that the city may make that area two-hour parking.) With 2000 people in a few block radius, that's a lot of cars, even with the current parking ramps available. "

Darwin wrote on Jun 26, 2008 9:26 AM:

" It is indeed rare to see such benevolence! "

evenkeel wrote on Jun 26, 2008 9:09 AM:

" Hallelujah East Coast Elitist; someone very close to me will be moving into LHI 2 soon and LaCrosse needs more downtown professional/business opportunities to help revitalize and grow our local economy. I am also a lifelong resident (4 decades plus) and avid "river rat." I have "no waked" by their waterfront development and am pleased to see shoreline improvements and respect for the might Mississippi's integrity. Lacrosse seems to be developing a nice balance of business, professional, healthcare and service occupational opportunities. Difficult to assess the manufacturing sector situation?? "

just me wrote on Jun 26, 2008 9:00 AM:

" Well said Hollywood7 and juco48.
Thank-you to the Webers. "

Senior Advocate wrote on Jun 26, 2008 8:32 AM:

" I suspect that like myself most posters and people in the La crosse area do not have a clue as to the real story here about LHI and their business dealings. Their however, is posted today one undisputable fact which is; no one not even Mr. Weber would have his business here unless it is very profitable for him, so their is nothing benevolent about his actions. This is not a slam, this is just plain hard business truth. Any business person would be a fool to operate and or expand his business anywhere but the most profitable to him or her. Should a sweeter deal come down the road the business would move. "

PACK 4 LIFE wrote on Jun 26, 2008 8:16 AM:

" I would imagine the waterfront will be holding a private party 4 the fireworks display.Eating at piggys used 2 be a joy 4 our family,now all we can do is have a picnic in the park 4 a riverview.Lets get that CASINO up and running markie,so i can have a buffet on the river.Yee haw,7 come 11 baby.River walk from the patros land 2 the lax harbor,with a CASINO in the middle,mobil oil site is the parking lot.Git er done boys git er done.More jobs than you can shake a stick at,and a BUFFET on the river.YUUUUUUUUUUUUUUUUUUUUUUUm "

Sadiedog62 wrote on Jun 26, 2008 8:01 AM:

" I don't understand the whole thing, but am saddened by the buildings that are now sitting empty, so why build another building?
I am also annoyed at the view that is being blocked by these 2 buildings. I no longer have the beautiful view of the Mississippi I once had. "

Darwin wrote on Jun 26, 2008 7:49 AM:

" Weber is CEO because he knows how to enhance his company's bottom line. He would not be doing any of this unless it was to meet that objective. East Coast, "helping this city to find more job opportunity" is incidental at best. Believe this - if it was not in LHI's best interest to be elsewhere they'd be gone. Ask Trane... ask La Crosse Footwear... Think about it: there certainly is a HUGE amount of folks in the area that need reasonably good paying jobs. And we've given his the waterfront. By low, sell high. Well played, Weber. "

juco48 wrote on Jun 26, 2008 7:32 AM:

" thanks don weber for making lacrosse a better place. to the whiners who aren't qualified to work at your place-- why don't you turn your attention to the city of lacrosse who have two very nice waterfront properties and do nothing with them. "

PACK 4 LIFE wrote on Jun 26, 2008 7:26 AM:

" Priceless river front property? Silly donatello,that land is blighted.Remember why we (CITY TAX PAYERS)moved piggys and cargill? Can you see the river from the new piggys? I thought the community theater was going in lhi 1? Oh wait donny boys daughter needs a new job,skip the theater and put in the waterfront.What a joke.We need an administrator. "

Hollywood7 wrote on Jun 26, 2008 7:18 AM:

" BGS- they are not under investigation. It was just speculation. Please learn how the process works. It was a bunch of sore losers that brought it up, and they will keep doing the same when ever LHI wins a contract.
Rickey- LHI does not operate because of war. They treat the service men and women of our military. We will always have military if there is a war or not, therefore LHI will keep treating our service members. Educate yourself before you throw your 2 cents in please. "

Donatello wrote on Jun 26, 2008 7:11 AM:

" What kind of "newspaper" would print a story like this and not mention whether it will be TIF financed?
We have set up Don Weber as a high priced Leona Helmsley type landlord downtown on priceless river front.
The net effect is to steal tenants from other existing businesses and leave their former offices empty.
This whole project is not good for the city since it added to the blighted empty buildings all over downtown. "

Nikki Beaverhausen wrote on Jun 26, 2008 7:10 AM:

" An excellent example of why healthcare costs are so high. Some of the most expensive buildings in town on some of the most expensive real estate. Tell my again why my premiums go up and my coverage goes down. Oh that's right, it has nothing to do with how the insurance companies spend the money, silly me. "

Rickey wrote on Jun 26, 2008 5:46 AM:

" Bad news for LHI = The Iraq war(so called) will not last forever "

insider wrote on Jun 26, 2008 4:33 AM:

" This is a quote from a tribune article in 2004 on the LHI TIF. "All the city's investment will be paid back through a tax-increment finance district to be created around the project, Medinger said. "Taxpayers will not pay anything for the project." Did this project cost the taxpayers?? Someone please explain how it did, I honestly don't know which side to believe. "

BrianGSmith wrote on Jun 26, 2008 4:33 AM:

" Logistics Health is nothing but a pork barrel fraud perpetrated upon the US Taxpayer. They do mundane and banal work government civic servants used to do, paper shuffling, but LH1 does at 10 to 20 times the cost. LH! is under investigation for some of the no-bid contracts they miraculously won. I doubt this new building will go up and I predict the others will soon be vacant. "

Mack wrote on Jun 26, 2008 3:18 AM:

" La Crosse should look to Onalaska and their recent leadership in refusing thinly veiled bribes to companies looking for handouts. Companies need to start locating and building for business reasons, not sweetheart deals at taxpayer expense. "

East Coast Elitist wrote on Jun 26, 2008 12:07 AM:

" Thank you Don Weber for an A+++ job. I am so glad that Don is making an effort to improve this city, and helping this city to find more job opportunity. All I can say is that before LHI, La Crosse was turning into a rust belt city like Beloit, but thanks to Don, La Crosse is on the rise again. Thank you Don, we appreciate your effort!!!! "


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