MANITOWOC — Once the paperwork is finalized, City of Manitowoc could own the former sites of the Lakeshore and Mid-Cities malls.
Manitowoc Common Council’s Committee of the Whole met in closed session last week to discuss negotiations for the purchase and agreed in open session to move forward.
City officials have not shared the details or price tag, and the sale isn’t final yet. Nor is there any word on what the property could be used for — although housing seems likely.
This could mark a turning point in the city’s years-long battle to replace the vacant and unsightly mall.
In January, the Committee of the Whole (composed of the entire council) met in closed session to discuss a letter of intent from Tycore Built LLC asking for the future right to buy the mall property with plans to build housing.
At that time, Mayor Justin Nickels declined to share details with the Herald Times Reporter, but said, “Hopefully we can announce something very soon.”
Tycore Built is in Howard, near Green Bay, and specializes in both single-family homes and multi-family residential complexes, according to the company’s website.
It’s probably fair to say no one would be happier than the mayor to see development at the site, 700 E. Magnolia Ave.
“’When is something going to happen with the mall?’ is the No. 1 thing I get asked about,” Nickels told Streetwise last fall. “It’s horrible for the people who live nearby or the people who drive by it every day.”
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In recent months, city leaders have become proactive about spurring action. The plaza’s current owner, Lakeshore Mall LLC, bought the property in 2005. In 2007, the same owner purchased the vacant mall to the south, Mid-Cities, at 828 Memorial Drive.
After years of stalled communications with the mall’s private, out-of-state owner, the Manitowoc council agreed in late October to exercise eminent domain over both sites, meaning the city can legally take over the property without the owner’s consent.
City Attorney Eric Nycz said at the time that process usually takes a few months to complete.
The council ruled the vacant mall — across from Lake Michigan — a blighted area earlier in 2023. The site is home to the empty Lakeshore Edgewater Plaza Mall and the Mid-Cities Mall, which was torn down in 2015. Under Wisconsin law, the blighted designation means an area is unsafe, could cause health issues or requires police presence.
At one time, the malls were filled with retailers and customers, but over the decades, Manitowoc stores followed national trends, moving closer to the interstate or into smaller strip malls.
In 2018, the Manitowoc Younkers was among the 42 stores Bon-Ton Stores Inc. — including eight in Wisconsin — closed as part of a turnaround plan for the company, which lost money for six consecutive years.
And according to a city Fire Department inspection report, since the JCPenney store that was part of Mid-Cities Mall was torn down, the parking lot has been degrading with uncapped drains and access panels exposed. There also are sinkholes forming within the lot, with weeds and grass growing in the badly cracked blacktop.
The report also said vandals have broken windows and that the ceilings are ruined and mold is growing around the building.
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The city was granted a raze order in 2020, meaning it could legally tear the building down, but hasn’t acted on it yet.
The city requested a purchase price last year, and people have approached the city about acquiring the property, Nickels said.
Under eminent domain, the city and mall owner can begin negotiations for the sale of the site. If negotiations fail, the city makes a final offer and more formal proceedings could take place, including a circuit court trial to determine how much the city must pay to acquire the property.
Stay tuned! Streetwise will keep you updated as we learn more.
Got a tip, question or comment for Streetwise Manitowoc? Contact reporter Patti Zarling at pzarling@gannett.com or call 920-606-2575. Follow her on X @PGPattiZarling or on Instagram @PGPatti.
This article originally appeared on Manitowoc Herald Times Reporter: Manitowoc moves to buy blighted Lakeshore and Mid-Cities mall site