MIDDLE MARKET HIGHLIGHT, AUGUST 2005

EAU CLAIRE
Karen Stone, CCIM

During the last 10 years, Eau Claire has diversified from its historically heavy industrial roots into a solid, steady-growth economy fueled by the University of Wisconsin at Eau Claire, with an enrollment of 14,000 students; a thriving medical community anchored by two major hospitals, Sacred Heart and Luther (an affiliate of the Mayo Clinic); and a growing services sector, which includes financial, media-related and tourism companies.

Royal Credit Union

Adjacent to the Royal Credit Union building, the city has transformed a green area into Phoenix Park, a $4 million project with bike trails and lookouts over the Eau Claire River. Also, the Eau Claire Chamber of Commerce and the Eau Claire Area Economic Development Corporation are moving back into downtown. They will lease space in a 20,000-square-foot, $2 million office building, which is being developed by Eau Claire-based Sigan Properties and is scheduled for completion in November.

The city has recently approved two more downtown projects that will break ground next spring.  Eau Claire-based Commonweal Development will build a $6 million, three-story mixed-use building that will have 20,000 square feet of street-level retail and 40,000 square feet of office space. On the housing side, Mike Benrud and Geoff Moeding are developing the first new residential units in downtown in more than 20 years. Their $4 million project will feature 16 to 18 brownstones above ground level retail.

Also, the city is promoting the redevelopment of existing buildings into loft apartments. As a part of this initiative, Sigan Properties redeveloped the former Uniroyal-Goodrich Tire plant in downtown into a 1.9-million mixed-use community that opened last summer. The development includes manufacturing and warehouse facilities, retail shops, offices, restaurants and 35 loft apartment units known as the International Harvester Lofts.

This fall, dirt will begin turning one mile east of downtown on a development that will rise higher than the downtown skyline. Eau Claire-based The Goldridge Group will develop The Waterford on 15 acres between the Eau Claire River and the Eau Claire Country Club golf course. Richfield, Minnesota-based Tushie Montgomery is designing the project.  Plans include 234 residential units spread throughout two 12-story condo towers, an office building, a bank and several service amenities. “These will be the tallest buildings in Eau Claire”, says Mike Schatz, economic development director for the city of Eau Claire and executive director of the Downtown Redevelopment Authority.

Gary Rossato of The Goldridge Group estimates construction of phase one of the $75 million development will start by the end of summer.  The first phase will have five buildings that, in addition to residential units, will include 60,000 square feet of office space and 30,000 square feet of boutique retail space. “The Waterford provides an opportunity for people to choose among various lifestyles, from very high-end tower units to loft-style living to more traditional townhomes,” says Rossato.  Plans also include an 80-unit independent living facility. “All units take advantage of the tremendous views of the beautiful Eau Claire Country Club as well as the Eau Claire River Valley,” he says.

The south and southeast sections of Eau Claire are seeing new retail development. Commonweal Development will complete the 9,800-square-foot Phase II of the Shoppes of Oakwood, a lifestyle center, this summer. The 20,700-square-foot first phase opened earlier this year.

At Interstate 94 and Highway 93, Mark Steil is building Eau Zone Action City, a 55,000-square-foot indoor sports center scheduled to open in mid-2006. Adjacent to this building, David Burke is developing the $2.5 million Florian Gardens featuring a 21,000-square-foot banquet facility and gardens.

Industrial development in Eau Claire is focused on the northwest side of town in the Gateway Industrial Park close to I-94. Hutchinson Technologies recently completed a 125,000-square-foot facility — its third in the park. Silver Spring Gardens, the largest grower of horseradish in the world, has recently completed a $7 million, 100,000-square-foot expansion to their processing plant. In September, FedEx Ground will be moving into a 25,000-square-foot building built by Eau Claire-based Ruedebusch Development. SpeeDee Delivery has just moved into a $1 million, 21,000-square-foot building built by Eau Claire-based Strack Companies. MCL Management is constructing a $1.2 million, 21,800-square-foot building that will be occupied by AirGas. National Presto Absorbent products recently spent $30 million to build out the balance of its existing space.

©2005 France Publications, Inc. Duplication or reproduction of this article not permitted without authorization from France Publications, Inc. For information on reprints of this article contact Barbara Sherer at (630) 554-6054.