MILWAUKEE — Despite reaching a previous agreement to purchase the defunct Northridge Mall site from U.S. Black Spruce Enterprises, the Milwaukee-based group Phoenix Investors LLC has backed out of the deal over disputes with the City of Milwaukee and Mayor Cavalier Johnson.
As confirmed by Mark Kass — Editor-in-Chief for our partners at the Milwaukee Business Journal — the agreement dissolved as Milwaukee leaders stood against the tax and fine forgiveness that Phoenix Investors LLC requested in the sale. Furthermore, Kass told WTMJ’s Libby Collins that Milwaukee wasn’t happy with their plan to develop the property.
“The Mayor’s office and the City really want to raise the property. They’ve said they want some sort of industrial presence,” Kass said. “They wanted it more for warehousing and they wanted them to drop the fines — about $800,000 in fines and fees — and the city wanted more jobs there.”
During the sales negotiations, Frank Crivello’s group provided 24-hour security and monitoring for the site off N 76th St. In the past, the site saw influxes of crime and numerous fires when left vacant.
PREVIOUS COVERAGE: Defunct Northridge Mall sale brings optimism for future + Kass provides update on the deal
Collins fears that the amount of money the City refused to pay in fines, fees and tax breaks could end up costing as much as the price the City of Milwaukee will need to spend on security when Crivello stops funding that next week.
“We had issues in 2022 there with multiple fires there, multiple other incidents there, so this is going to get interesting over the next couple of months as to what happens next,” Kass said. “Is there anyone else out there who wants the property? We obviously have not seen them yet.”
The defunct Northridge Mall site has long been a topic of debate for Milwaukee residents — many of whom have grown increasingly unhappy with the status of this location. Kass has heard from some of those individuals and feels that the city will be disappointed with this outcome.
“Anything is an improvement over what’s there,” Kass said. “The city obviously is trying to look more longterm. Unfortunately, I think some in the community are going to say ‘Well… it literally has been 20 years since anything has happened there. We need something there.'”
This is a developing news story. An update and/or follow-up may be issued if further details are revealed.
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