One of the owners of a house formerly owned by Darrel Kallembach wants to change the plans for which the city awarded the property.
River to Valley Initiatives of Prairie du Chien was the successful bidder on the house at 565 W. Cedar St., as well as four other properties, when the city sold 12 of Kallembach’s 17 properties in 2014.
The developer’s agreement specified that the house would be demolished and replaced by a new house, and that work would be “substantially completed” by June 1.
Now, River to Valley wants to change its plans to move the house on another former Kallembach property, at 420 Southwest Road, to the Cedar Street property.
Director of Community Development Joe Carroll said at the July 12 Common Council meeting that River to Valley “looked more closely at the Southwest Road property and decided it was worth saving.”
River to Valley paid $20,349.76 for the Cedar Street house. It was not the highest bidder on the property, but a city committee that evaluated bids in 2014 awarded River to Valley the property because it proposed a new house.
Carroll said allowing the plans to change was not “fair to developers that were not selected. It’s kind of a bait-and-switch for me.”
Carroll said River to Valley could be subject to financial penalties for not completing work on either property by the deadline. The developer’s agreement states that the developer shall be assessed a nonperformance penalty equal to the difference between “the amount of real estate taxes that would have been generated from the property if the minimum Fair Market Value requirements had been met” and “the actual amount of real estate taxes generated from the property.”
District 4 Ald. Ken Kilian said moving the Southwest Road house to Cedar Street would “really not fit that well,” given that the Southwest Road house is taller than houses in the 500 block of Cedar Street.
River to Valley also successfully bid on the house next door to the Southwest Road property, at 440 Southwest Road. That house was moved to 515 Lutheran St. and is for sale. River to Valley plans a three-unit apartment on the two Southwest Road lots.
River to Valley also owns two other former Kallembach properties, at 255 Division St., where the existing house was demolished, and at 335 Division St., where renovations and repairs are under way, according to city records.
The River to Valley properties are the only former Kallembach houses where work hasn’t been completed, according to city records. Two houses purchased by Rigafellers Enterprises LLC, at 260 S. Chestnut St. and 235 Third St., were both renovated. Two houses purchased by Droessler Properties LLC, at 185 Center St. and 430 S. Chestnut St., were demolished and replaced by new homes. The house purchased by John and Dustin Duggan at 310 W. Gridley Ave., was renovated. The house purchased by Dave and Judy Irish at 375 Irene St. was demolished and replaced by a new house.
The house at 1536 County B purchased by Duane Wagner was demolished and replaced by a new house, which was annexed from the Town of Platteville into the city. That house was damaged when it was hit by a pickup truck July 12.