In an anti-climactic hearing that lasted less than five minutes, the City of Milwaukee gained court approval to take control of the former Northridge Mall property Thursday morning and will begin demolition of the property this spring.
Northridge Mall on the far northwest side of Milwaukee closed more than 20 years ago and has sat vacant since. The bulk of the property since 2008 has been owned by Chinese investment group U.S. Black Spruce Enterprise Group Inc.
The mall is facing a pending city raze order that Black Spruce has appealed to the Wisconsin Court of Appeals, which hasn’t ruled on the case yet.
However, Black Spruce has approximately $1 million in unpaid property taxes from 2018 through 2021, which prompted the city to file a separate tax foreclosure lawsuit in October to take control of property.
Black Spruce missed the Jan. 19 legal deadline to pay off those taxes to avoid foreclosure, according to assistant city attorney Hannah Jahn. At this point, the city would not accept a tax payment from U.S. Black Spruce to redeem the property, which the company has done in the past when the city has taken similar action.
With no defense present Thursday, Judge Glenn Yamahiro approved and signed the transfer of ownership to the city.
“It’s a shame,” Yamahiro, who grew up in nearby Northridge Lakes, said of the mall’s current condition. “I spent time working at Gimbels, Red Lobster, which is what the original use of the IHOP, now defunct, was in the late ’70s.”
Black Spruce still has 45 days to appeal the foreclosure, but Milwaukee Mayor Cavalier Johnson said that the company has little legal basis to do that. Further, Johnson said that it is his understanding that, once court documents are finalized, the city will have full control of the property, regardless of the outcome of Black Spruce’s appeal of the city’s standing raze order.
City plans demolition, redevelopment
“Neighboring businesses and residents have had to endure the growing blight,” Johnson said at a City Hall press conference after the ruling. “We’re thrilled that the city now has the opportunity to move forward with razing this dangerous property.”
The city has begun interior demolition of Northridge’s former Boston Store, which is a separate parcel that the city owns.
As for the rest of the mall, Johnson said the city will begin securing the property, which has been a site of trespassing and fires in recent years. Security will include 24/7 on-site personnel, fencing the perimeter of the site and boarding up the structure.
Demolition of the property could begin this summer, with the site ready for redevelopment by fall 2025. The city plans to issue bids for demolition and abatement work this spring, according to Johnson. In December, Gov. Tony Evers granted the city $15 million in American Rescue Plan Act funds to help pay for site demolition and remediation.
Demolition and abatement work are tagged to be around $9 million and site stormwater and utility work at around $4 million, as well as some miscellaneous costs. ARPA funds will also help support costs to secure the property, Johnson said.
The city does not have a “grand plan” for the 58-acre mall property, but Johnson said that redevelopment of the site could be a catalytic development for the area.
