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Doerflinger

The Doerflinger Building in downtown La Crosse

An agreement between La Crosse and Doerflingers Second Century Inc. proposed Thursday would help fund renovations to the Doerflinger Building to facilitate Duluth Trading Co.’s upcoming move into the first floor.

The city’s Economic Development Commission unanimously approved the deal, which calls for the city to provide a $94,000 loan and a $98,810 grant funded by Tax Increment District 6 to the La Crosse company owned by Mike Keil. The agreement will go before the city’s finance committee next week.

Under the agreement, Keil and Duluth Trading Co. would commit to completing $1.8 million in improvements — including a new staircase, electrical upgrades and façade improvements — by Jan. 1, 2017.

“This is a very significant investment in that building, given its base value,” city planner Jason Gilman said.

Duluth Trading Co. announced Monday that it had signed a five-year lease to occupy the entire first floor of the building, which previously housed multiple tenants. To accommodate the change, Keil will renovate the outside of the building, as well as update the first floor.

Gilman recommended the commission approve the request, citing the increase in tax revenue and the impact a national retailer would have on consumer activity downtown.

“It’s a solid improvement to the building that makes that building more viable and it stays with the city,” Gilman said.

Gilman told the commission that the improvements will have a positive impact on downtown, making it more attractive for other downtown investors and allowing the city to better market downtown. Keil provided a detailed analysis of the additional income he expects to be generated by Duluth Trading Co. in closed session.

According to city staff, the TID was specifically created for projects such as Keil’s and has a cash balance of more than $200,000.

City officials estimate that the improvement would increase the assessed value of the building by $300,000. Gilman added that the increase in tax revenue would pay for the grant before the TID expires in 2021.

“Given the four years left in TID 6 and the likely $25,000 in new tax revenue, we can assume that the $98,000 grant will be paid back within a four year period,” Gilman said.

The $94,000 loan would be paid back over eight years at a 1 percent interest rate.

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City government reporter

Jourdan Vian is a reporter and columnist covering local government and city issues for the La Crosse Tribune. You can contact her at 608-791-8218.

(12) comments

Redwall

...like taking candy from a baby.

Mack

again?

RLK Ocean

Well put, Bozo. Was discussing the bad roads and wasted money with folks just last nite. Simply put, what is taking $200,000.00 from taxpayers and giving it to private business called?...capitalism....socialism.....communism....fascism.....??????

Thanks for the wisdom quotes. If we all embraced what our founding fathers said we could turn this country around -and turn it back over to the people.

Machiavelli

RLK: "Simply put, what is taking $200,000.00 from taxpayers and giving it to private business called?...capitalism....socialism.....communism....fascism.....??????"

It's fascism...as defined by the dictator who coined the term:

“Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”
― Benito Mussolini

“The definition of fascism is The marriage of corporation and state ”
― Benito Mussolini

“Let us have a dagger between our teeth,a bomb in our hand,and an infinite scorn in our hearts.”
― Benito Mussolini, The Doctrine of Fascism

“The truth is that men are tired of liberty.”
― Benito Mussolini

random annoying bozo

I think they call it wealth redistribution ....... that's when money is taken from the 'have nots', and give it to the 'have plenty alreadys'.

LClason

Why would they need to do anything to that Beautiful staircase?

Redwall

So true...SAVE THE STAIRCASE

hrpufnstuf

Sounds like a good investment. A loan that gets paid back and a grant which will be made up through a higher tax base. 1.8 million in construction improvements to a historic building. Although I hope that the mention of a new staircase doesn't mean they want to tear out the old one.

random annoying bozo

are there any 'developers' or businesses left in lacrosse that actually use their own money, or do they just all rely on taxpayers to fund their projects?

is lacrosse so bad to do business in that the city has to bribe people by giving them taxpayers money ?

do any 'developers' ever thank taxpayers in lacrosse for the use of their hard earned tax dollars? or do the 'developers' just 'assume' taxpayers work for them?

Machiavelli

Re: "The city’s Economic Development Commission unanimously approved the deal, which calls for the city to provide a $94,000 loan and a $98,810 grant funded by Tax Increment District 6 to the La Crosse company owned by Mike Keil."

La Crosse City Hall, do please fix our roads, especially Lang Drive, before handing out our property tax money to your golf buddies.

"Dear Government... I'm going to have a serious talk with you if I ever find anyone to talk to.”
― Stieg Larsson, The Girl Who Played with Fire

“The more corrupt the state, the more numerous the laws.”
― Tacitus, The Annals of Imperial Rome

“To oppose corruption in government is the highest obligation of patriotism.”
― G. Edward Griffin

“It’s not unpatriotic to denounce an injustice committed on our behalf, perhaps it’s the most patriotic thing we can do.”
― E.A. Bucchianeri, Brushstrokes of a Gadfly

“Among a people generally corrupt, liberty cannot long exist.”
― Edmund Burke

tRu

Drive less.

Machiavelli

Tax less.

...because of services paid for but not delivered.

“The whole point about corruption in politics is that it can't be done, or done properly, without a bipartisan consensus.”
― Christopher Hitchens

“Look at the orators in our republics; as long as they are poor, both state and people can only praise their uprightness; but once they are fattened on the public funds, they conceive a hatred for justice, plan intrigues against the people and attack the democracy.”
― Aristophanes, Plutus

“And the so-called 'political process' is a fraud: Our elected officials, like our bureaucratic functionaries, like even our judges, are largely the indentured servants of the commercial interests.”
― Edward Abbey

“We need to show the Congress that our Government is no longer on sale to the highest bidder. It belongs to the voters.”
― Kenneth Eade, Terror on Wall Street, a Financial and Political Thriller

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