Altoona River Prairie land sales revenue to go into general fund

Friday, July 24, 2015
Andrew Dowd, Leader-Telegram staff

Development continues at U.S. 53 exit

ALTOONA - With city work nearing completion at River Prairie, Altoona leaders are shifting a revenue stream that had aided the development along U.S. 53 during its leaner years.

On Thursday night, the Altoona City Council unanimously decided it no longer needs to use 30 percent of the proceeds from selling land at River Prairie to help pay for infrastructure at the development, freeing it up for other city uses.

That means the city's general fund will get about $2.4 million that previously would have been bound for the tax increment financing district out of $8 million of land left to sell at River Prairie, according to city Administrator Mike Golat.

A committee is meeting to discuss the use of the money. A couple of ideas include a community building at River Prairie and a fund for acquiring land elsewhere in the community to capitalize on Altoona's redevelopment momentum, Golat said.

Stressing no decisions have been made on how to spend those dollars, Mayor Jack Blackburn said another possibility could be hiring some additional employees.

"Our city is growing, and our expenses are growing," said Blackburn, who is excited to see the growth. "This change gives us the funds to hire people now" if that's what's decided.

The city is looking for other areas for growth, Golat said, as its work nears completion at River Prairie.

"We're going to get most of the infrastructure and roads completed this year," he said.

The city's remaining River Prairie projects planned for 2016 include a park and road along the Eau Claire River, he added.

Land sale proceeds are no longer needed for River Prairie, as property taxes from new businesses and homes there are providing the cash flow needed by the city to pay off its projects in several years. After the city's costs are paid off, the taxes then will go for general use to the county government, city, school district and Chippewa Valley Technical College.

While River Prairie had some lean years during the recent recession, limiting its growth to housing, the area now is home to a for-profit hospital, other businesses and a soon-to-open supermarket.

Woodman's Food Market will open the area's largest grocery store this fall in River Prairie, joining the development's other major anchor, OakLeaf Surgical Hospital.

City officials were told Woodman's would open Oct. 1, but there is some indication the store could open as soon as Sept. 1, Blackburn said. 

 A hotel and convenience store are also under construction, and Golat said he's heard from restaurants, retail and housing developers interested in River Prairie.

"There's a ton of interest, and we'll be moving forward with some those things soon," Golat said.

One of the preparations the city is making for new businesses is making sure there will be alcohol licenses available for stores.

Woodman's got the city's last beer and liquor license available for retail sales, prompting Altoona leaders to up the city's limit of five Thursday and create five additional licenses for future businesses, Blackburn said.

- Photo by Steve Kinderman, L-T staff

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