Story originally printed in the La Crosse Tribune or online at www.lacrossetribune.com

Published - Friday, July 25, 2008

City ends talks with Park Plaza developer

By SAMANTHA MARCUS / La Crosse Tribune

La Crosse’s Redevelopment Authority on Thursday cut off all talks with a would-be Park Plaza developer after more than two years of protracted negotiations over the Barron Island site.

Development on the prominent piece of city real estate has been suspended for years by failed negotiations, most recently with the Waunakee, Wis.-based Progressive Design.

In a closed session meeting Thursday — attended by La Crosse County Administrator Steve O’Malley — the board officially declared an impasse.

Progressive Design representative Kyo Ladopoulos said in November his firm still was interested in the site. “We don’t see an impasse of our making,” he said. “Now we’re being asked to bow out.”

The Redevelopment Authority had considered ending negotiations at the time because of the apparent impasse and because two local developers had emerged a month earlier with plans for the lot.

Jay Hoeschler, who twice before had negotiated with the city for the land, and Noel Jordan proposed a two-phase project in October that included improvements to the marina, with a restaurant and retail option by spring 2009 and possibly a hotel by 2017.

The panel eventually voted to continue trying to work with Progressive Design.

City Planner Larry Kirch said he since has traded e-mails with Progressive Design and gave representatives until July 16 to make a move.

Kirch declined to comment Thursday on what’s next for the site, except to say “the county still is interested in working with the city.” O’Malley couldn’t be reached for comment.

La Crosse County in 2001 took the former hotel site from a delinquent taxpayer owing about $1.1 million.

The city and county later formed an intergovernmental agreement to jointly pursue development of the property.

Samantha Marcus can be reached at (608) 791-8220 or smarcus@lacrossetribune.com.