New details of downtown deal between Eau Claire developers
Eau Claire (WQOW) - A $5 purchase from the City of Eau Claire turns into a $20,000 sale for a developer.
It was known that 2 S. Barstow had been sold to make way for the Confluence Project, but what wasn't known was for how much...until now.
In 2011, the Eau Claire Redevelopment Authority, a city commission, sold 2 S. Barstow to John Mogensen for $5. The century-old building had been vacant for years. Mogensen was interested in renovating the building into apartments and commercial space. However, a year later, the Confluence Project was announced and other developers began expressing their interest in the property.
Under the agreement Mogensen had with the city, he had to pay taxes on an $800,000 property value, by January of 2013, even if renovations failed to happen, which was the case. He was then given an extension until January 1 of this year. In March, the redevelopment authority agreed to allow Mogensen to sell the building to Haymarket Concepts so it could be demolished for the proposed Confluence Project. Online records show the sale was for $20,000.
Records also show Mogensen paid $1,800 in property taxes on the building in 2013. The new agreement means Haymarket Concepts will now be obligated to pay taxes on $800,000 of property value this year.
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