Alderman Still Opposes Land Sale For Potential World-Tallest Timber Tower

Alderman Robert Bauman speaks at Neutral Edison groundbreaking. Photo by Jeramey Jannene.

Keep your friends close, and give your biggest skeptic the microphone.

That’s what Madison-based real estate developer Neutral did Monday when it celebrated the groundbreaking of what will become the tallest mass timber building in the Western Hemisphere, the 31-story Neutral Edison at 1005 N. Edison St.

The company invited area alderman Robert Bauman to speak at the groundbreaking. He joined Mayor Cavalier Johnson, Neutral CEO Nate Helbach and Neutral Chief Product Officer Daniel Glaessl in speaking at the 20-minute ceremony and praised the company’s bold vision in advancing the luxury apartment tower and its green design.

But Bauman, Neutral and the mayor don’t see eye-to-eye on what could come next.

In August, the mayor and Department of City Development (DCD) announced that Neutral was the winning bidder of a request for proposals (RFP) process to redevelop the Marcus Performing Arts Center parking structure site, 1001 N. Water St. Helbach reititerated Monday that his firm would like to build the world’s tallest mass timber building on the site, a 55-story building that would anchor a multi-building, $700 million development.

But Bauman has effectively held up awarding Neutral control of the site, with DCD not advancing a resolution to the council. He would like to see the RFP reconfigured and reissued.

Speaking to the media after a ceremonial dirt toss, Bauman said he is concerned about the lack of responses to the RFP. Only three firms responded to an offer to redevelop the 2.45-acre site. The alderman said he would have expected national firms to bid on what he said was a “massive site” for downtown development.

He’s also concerned that Neutral’s proposal comes in three phases. “The city has been burned on phased developments in the past,” said the alderman. He referenced the Harley-Davidson Museum project, which involved a city land sale and was expected to include an office building and additional development. Most of the property now is surface parking.

“People will kind of promise you anything upfront to get their hands on the land and then circumstances change, maybe beyond their control, and then we go to try to claw the land back and ‘oh sorry, we’re going to keep it,'” said Bauman. “So I’m very leery of phased deals.”

He suggested that DCD could reissue the RFP, splitting it into three separate parcels. “I was really baffled by the small number of proposals for a site that was allegedly this valuable,” said the alderman. Bauman is backing off his idea of a market feasibility study for the property. He said the cost of conducting the study was a concern.

Previously, he also expressed concern that Neutral had never developed a large building. But the firm has now completed a mass timber apartment building in Madison and started construction on a much larger building in Milwaukee. Does that change his mind?

“I don’t know, but I’m all ears,” he said. Bauman said he’s concerned a new development would compete with Neutral’s first project and comes at a time when two other luxury high rises are paused. “The market is telling us something.”

Helbach took the high road when learning of Bauman’s comments.

“I think it’s been something for the city where they want to see us break ground and they want to see momentum here before they trust us to do a large project like Marcus Center, because if we think about it, it’s quadruple the size of this project,” said the developer. “So I think it’s going to be a negotiating process with the city, where we go back and forth and build trust and build the relationship further to be able to have them have us continue.”

What about the idea of breaking up the site into separate parcels with separate RFPs?

“The city formally awarded us, and so we believe the best path forward is probably moving forward with the original RFP and not going back out for RFP, but that’s something we’re discussing,” said Helbach.

Bauman said the council has proved wise in the past in rejecting RFPs, citing an example that directly benefits Neutral today.

The alderman praised the council’s 2015 decision to reject a Klein Development proposal to build a 10-story building on a small city-owned site, 1027 N. Edison St., that is now being used by Neutral’s 31-story development. “We reserved the right to say we changed our mind,” said Bauman. “We pulled back and it was a blessing in disguise because had that not happened, you would have had a 12-story building sitting where these construction trailers are.”

For more on the 31-story building that is being built, see our coverage from Monday.

Renderings

Neutral Edison Renderings

Parking Structure Photos

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