The Little City That Could

Wednesday, April 29, 2015
Katie McKy, freelance writer for the Chippewa Valley Business Report

Mike Golat moves Altoona front and center

When Route 66 connected the Midwest to the West, entrepreneurs recognized the opportunity. A lonely highway was transformed by teepee-shaped motels and frozen custard stands. Sans the kitsch, a similar transformation is occurring on the outskirts of Altoona with Highway 53 and Mike Golat, Altoona's city administrator, a major cog in the drivetrain of development.

Altoona City Administrator Mike Golat stands in front of the Woodman's Market building that is going up at the corner of River Prairie Drive and US Highway 53.  The store is expected to open Oct. 1 and drive plenty of traffic to Altoona.
(Photo by Ross Evavold, CVBR)

This transformation was set when Golat arrived in Altoona nine years ago, and his bosses made the potential importance of the River Prairie development quite clear.

"When I was hired, I asked, 'How will the success of the new city administrator be measured?' They said that River Prairie was a big part of it."

In the ensuing years Golat has taken a leadership role on the city's key development project, although he is quick to attribute success to others.

"The City Council is my boss, so they are the real leaders. They set the tone and the policy goals and they've stuck to it. They gave us the creative latitude and the can-do attitude that are key," said Golat, who also attributes his achievements to circumstances.

"When I arrived here, the city owned the property around the interchange and the highway was on the way. It was logical for development to come east. So, the table was set when I got here."

Not so fast

However, Golat played a key part when Altoona's can-do attitude and favorable location collided with the brick wall of unpaid debt, a wall fortified by the Great Recession.

"The city got ahead of the highway going through and invested $6-7 million in infrastructure, but also got ahead of the tax base to pay the debt obligation," he says. "When I got here, we didn't have enough cash flow to pay our bond obligations."

In 2008, $175,000 was yanked from Altoona's general fund for the River Prairie debt.

Tom Meyer, at the time the mayor of Altoona, didn't mince words: "There was a picture painted. It was a beautiful picture in a perfect world, but it's not there anymore."

The Great Recession had developers, banks and builders wary of investing. Altoona lacked the anticipated income from its property being purchased and taxes being paid on that property.

Partnerships

Altoona considered declaring River Prairie a distressed development district due to the accumulated debt. Golat knew he had to do something. But what?

The solution to Altoona's debt was met through partnering with businesses that wanted to help make the city grow.

"We had the good fortune of striking good partnerships with people committed to growth in Altoona," Golat said. "The highway went in the summer after I got here, which gave us the opportunity to really start marketing it. You get enough money to pay your debt obligation by increasing your tax base and we needed good partners to create that tax base."

Casey Weiss of Access Commercial Real Estate, Cody Filipczak of C&M Properties and Construction and Robb Majewski of Cottagewood Group invested early on, according to Golat.

"Casey Weiss bought the entire west side of 53. We needed good partners willing to take a chance on Altoona. Without them, we wouldn't have the success story that we've had," Golat said.

Altoona also offered a $2 million cash incentive to OakLeaf Surgical Hospital to relocate to Altoona.

"With regard to commercial development, the big breakthrough was the OakLeaf hospital, which was facilitated by Robb Majewski and Peter Hoeft of the Cottagewood group. They helped put that together. They have remained engaged in the development and helped us get there. Those sales proceeds allowed us to pay our debt obligations and create more increments to increase our tax base."

A cash incentive primed the development pump.

"The hospital was a huge, huge catalyst. They needed an incentive to be comfortable to make the move, but they're creating taxes for payback and debt obligation, making it a good deal for Altoona's taxpayers," Golat said. "It will also spin off other support services, such as housing, food, motels and so on to support a business like that."

Cottagewood Group also struck deals with Chippewa Valley Orthopedics and Sports Medicine, Northwoods Therapy Associates and Wisconsin Brain & Spine Center, enabling Altoona to reacquire the northwest quadrant.

"The northwest quadrant has been viewed as the gem of the development," Golat said. "The Eau Claire River wraps around it, providing beautiful river access. We're seeing really good interest in that quadrant. I've got three offers this week on just one lot. Kwik Trip convenience store, WestConsin Credit Union, Bernicke & Associates and Staybridge Suites are committed to building, beginning this year."

The area will likely have much more, Golat says, including a destination restaurant with a brewpub atmosphere, an interactive stream, an amphitheater, shops including national retailers, and a child's play area with a nod to Altoona's railroad roots. A tree-lined main street will center it.

Development also abounds in other quadrants.

"Access Commercial Real Estate brought Woodman's Food Mart aboard, selling the Janesville-based company 40 acres in the southwest quadrant. Woodman's is huge at 240,000 square feet. They're opening October 1st of this year and it's about the best traffic driver for retail that we could ever imagine. Woodman's is also building a car wash and convenience store."

Of course, partnering with mayors, current and past, is also crucial for the project's success.

Altoona Mayor Jack Blackburn said, "Mike has a positive attitude toward the City of Altoona and his work in general. He does a good job of advising the City Council of developing situations. One of my primary desires in running for the position of mayor was the opportunity of working with Mike; I have not been disappointed."

Lean, quick and supple

How did Altoona manage to partner with so many players? Golat attributes the city's success to a lean, clean bureaucracy.

"We have limited bureaucracy, which is really important for the development community. Time and uncertainty hold up a project. If you can be timely and take away uncertainty, then that can really move a project forward," he said.

The developers appreciate the flexibility.

"We are always looking at how we can make it happen rather than why it can't happen. Of course, we are always looking at the best interests of the community. The developers appreciate the City Council's creativity, flexibility and common-sense approach."

All of this activity has meant a lot more work has been piled on the plates of city employees.

"It's busier in Altoona than it's ever been," Golat said. "The city staff hasn't grown commensurate with the growth of the city, so the staff has had to pick up a lot more work and they've done that. They're one of our strengths and I want to pay homage to our dedicated staff, too. Without them, it couldn't happen."

"Mike has had a very positive influence in the direction that Altoona has gone in the past nine years," said Meyer, who was mayor from 2006-2010. "Without Mike's help, I could not have done the job that I needed to do. He has always had the best interest of the city in mind, and the citizens of Altoona are fortunate to have him as our city administrator. He works collaboratively with others and works with the council and is very informative on all subject matter."

A multifaceted man

As Golat credits his staff, Weiss credits Golat's myriad skills.

"Mike is very effective in managing large scale developments like those that have occurred at River Prairie. His work at the City of Altoona requires him to wear many different hats and he is very good at doing so," said Weiss. He also credits Golat's development savvy.

"I was always impressed at how Mike made sure all stakeholders were considered. His priority was to look out for the city's best interest, but he would combine that with fair and unbiased consideration of our proposals. I also found him to be very knowledgeable in the process of land development."

The bright side

Partnering, efficiency and savvy have been key components of Golat's leadership, but the primary driver might be his sunny disposition.

"Optimism is key. As a leader, optimism carries you a long ways," he said. "This project has had many challenges, but I've always maintained that things are going to work out. You have to have that perspective when you're providing leadership. Everyone who looks to you for leadership needs to feel that. They take their cues from you."

Of course, it's easy to be sunny when the sun is shining, but the Great Recession was a long, cloudy stretch.

"We've had the recession and financial setbacks, but I've always remained bullish that it was the right project at the right time. Even through the bear market conditions of a recession, you have to remain bullish. That's been a good part of why we've been able to be successful. We believe in the project and we believe in Altoona."

That optimism provided the requisite persistence.

"Partnerships, persistence and optimism have sustained us and persistence comes from optimism. I've always maintained that River Prairie is going to be something very special despite the setbacks. We are always looking at how we can make it happen, rather than why it can't happen."

Altoona's Route 66

Once upon a time, Altoona didn't even have its own unique name. It was simply known as East Eau Claire, a train yard and a grid of neat houses abutting Eau Claire.

Now Altoona has more than its name. It has its Route 66: Highway 53. Led by Golat, the Altoona City Council and the investors who foresaw the potential of its location, that prime location is being developed. That development is already paying dividends. The total value of the city's tax base rose from $367 million to $475 million, and the traffic count on Highway 53 has already exceeded the 20-year planning expectation, Golat said.

The growing tax base is powered by a growing population. From 2010-2013, Altoona's population climbed by 331 to 7,056 residents, according to the U.S. Census Bureau. This 5-percent growth makes it the third fastest growing city in Wisconsin. People need places to live, which meant 348 residential units were built between 2006 and 2014, an unprecedented pace for Altoona.

However, to reach this moment, Altoona had to climb up and over the mountain of the Great Recession. Scaling that mountain took Golat's optimism and persistence. He kept chugging like the little train that said, "I think I can, I think I can," and today his little city is achieving its potential.

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