MIDDLE MARKET HIGHLIGHT, AUGUST 2008

WISCONSIN MIDDLE MARKET HIGHLIGHTS
Coleman Wood

Phoenix Park Rises From the Ashes of a Brownfield Site, Signals Rebirth in Eau Claire

Phase I of the Phoenix Park neighborhood, broke ground in June, and will feature 80 apartments, 30,000 square feet of retail and a small office component.

The city of Eau Claire, Wisconsin, has spent over two decades cleaning up a 7.6-acre brownfield site located at the confluence of the Chippewa and Eau Claire rivers. Tons of garbage and contaminated soil were removed from the former location of a gas plant and a steel company in hopes of developing the site into something the entire community could enjoy.

This rebirth began in 2003 with the groundbreaking of a new 100,000-square-foot headquarters for Royal Credit Union (RCU). The $12 million project, which was completed in 2005, proved to be just the beginning.

The RCU building provided the tax increment financing the city needed to develop Phoenix Park, a $4 million public park located along the waterfront around the building. After this came the construction of Farmer’s Market Pavilion, which holds farmers markets and other outdoor events. Since its opening in 2006, the venue has proven extremely popular with the community. 

“The events that are being hosted at the Farmers Market Pavilion, and also at the labyrinth that’s in the park, are gathering places,” says Mike Schatz, economic development director with the city of Eau Claire. “For example, we have concerts in the summer every Thursday night where anywhere from 500 to 1,000 people come down and listen to music while the sun is setting over the river.”

Then, in 2007, an agreement was reached between the city council, the redevelopment authority and developer Phoenix Parkside LLC (a joint venture between local developer Geoff Moulding and Michael Lander of Minneapolis) to create an urban district in the area known as Phoenix Park Neighborhood.

The first phase of the project, which broke ground in June, will consist of 80 loft-style apartments, 30,000 square feet of retail and 6,000 square feet of office space. Concurrently, local landmark Luther Pharmacy will be relocating to a new freestanding building at Phoenix Park, set for completion this fall.

Phase II, which carries the same $10 million price tag as Phase I, will tentatively break ground in 2010. It will include 133 condominiums, 90 apartments and 20,000 square feet of retail. The project will use sidewalks, and narrow streets to encourage pedestrian traffic through the development. For those driving to Phoenix Park, the project will utilize a shared parking system with the RCU Building and the park that will provide ample parking while reducing the amount of parking spaces that need to be constructed.

A possible third phase of the project could be developed as early as 2012. RCU expressed interest when its headquarters was first constructed in an eventual expansion. If this happens, another 100,000-square-foot office building could be built at Phoenix Park.

“This is certainly a time in Eau Claire’s history where we really went all out and did it right,” Schatz says. “On a nice summer day, you’ll see hundreds and hundred of people just strolling through the park: mother’s pushing babies, people rollerblading, people biking, people running. It’s just been wonderful how everyone has take to it.”

One of the project’s goals was to seamlessly integrate itself with the surrounding community. The architecture style of Phoenix Park Neighborhood is similar to the same style used in Eau Claire’s downtown buildings. Rather than build a new downtown, the city wanted Phoenix Park to serve as an extension of the current downtown.

“When it’s finished, people are going to think of this as the premier downtown neighborhood,” Schatz says. “It’ll have a very good integration of preserved, older historic buildings with new, modern buildings that have taken the architecture of the old buildings and incorporated that into the new design.”

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