The Milwaukee County Board Thursday voted against selling O'Donnell Park to Northwestern Mutual Life Insurance Co. Credit: Benny Sieu

By

The Milwaukee County Board on Thursday voted 9-8 against selling O'Donnell Park — a 6.8-acre plaza atop an underground parking garage — to Northwestern Mutual Life Insurance Co. for the appraised value of $14 million.

Within a few hours of the vote, Northwestern Mutual officials said they would move on and build parking as part of a proposed mixed-use development at a nearby company-owned property.

Supervisors who opposed the deal said the sale price was too low and the agreement lacked guarantees of public access to the south end of the park. A few opposed selling any parkland.

Only the north half of the park is restricted by deed to remain public space. The south half is zoned for park use.

Supporters of the sale said one reason for the appraisal amount were restrictions on use of the property.

O'Donnell Park covers two city blocks west of N. Lincoln Memorial Drive, between E. Michigan and Mason streets. The Betty Brinn Children's Museum is located inside the 3-story Miller Pavilion on the southwest corner of the plaza.

Those voting against the sale were Supervisors David Bowen, Gerry Broderick, Jason Haas, Willie Johnson Jr., Patricia Jursik, Theodore Lipscomb, Michael Mayo Sr., Peggy Romo West and John Weishan Jr.

Broderick, chairman of the board's parks committee, criticized officials with a viewpoint that public parks were commodities that could be sold.

Board Chairwoman Marina Dimitrijevic supported the sale along with Supervisors Deanna Alexander, Mark Borkowski, Khalif Rainey, James Schmitt, Anthony Staskunas, Steve Taylor and Martin Weddle.

A few dozen county residents opposed to the sale attended the board meeting. A banner stating "Keep O'Donnell Park PUBLIC" was taped to a rear wall of the boardroom.

The vote to reject Northwestern Mutual's offer to purchase followed an unsuccessful attempt to postpone a decision for one month to determine if the plaza could be separated from a possible sale of the multilevel parking structure. Bowen's motion to lay over a vote failed 14-3.

"The public lost out on an unusually good opportunity," County Executive Chris Abele said of the company's purchase offer. "I think it was a good deal."

Abele said he would reach out to Northwestern Mutual representatives Thursday to discuss possible revisions to the offer.

But Northwestern Mutual announced Thursday that it was going in a different direction and would build a mixed-use real estate development immediately west of its downtown Milwaukee campus.

"Although we are disappointed by the County Board's decision, we want to acknowledge the outpouring of support we have received from all corners of the community, both today and throughout the debate," said Sandy Botcher, vice present at Northwestern Mutual and head of the company's downtown campus expansion project.

"With this missed opportunity, it is now incumbent on the County Board to find solutions to the long-overdue deferred maintenance issues at O'Donnell. The board needs to make good on this morning's dialogue about better options for O'Donnell Park, including how to pay for the millions of dollars in deferred maintenance."

"For our part, our belief in Milwaukee is undiminished," she said. "We will continue to do all we can to make our community great."

The company will not reopen discussions with the county over a possible sale of O'Donnell Park, said Betsy Hoylman, director of media and public relations.

The mixed-use development announcement isn't a tactic to persuade the County Board to take another vote on the issue, and approve a sale, she said.

Botcher said Northwestern Mutual will work with city officials in reviewing preliminary plans for the mixed-use development. One concept includes a structure with up to 1,000 parking spaces for its employees, but also residential and possible retail components.

The company owns almost all of the property on the block bounded by N. Van Buren St., N. Jackson St., E. Mason St. and E. Wells St. It also owns the block that surrounds the 611 E. Wisconsin building on the southwest corner of Van Buren St. and Wisconsin Ave.

Northwestern Mutual would have paid the county $12.7 million after deducting a $1.3 million credit for immediate repairs to the roof of the underground parking garage, under the proposal rejected by the board. A rubber membrane between the roof and the plaza is leaking.

In a Dec. 8 letter to board members, Northwestern Mutual Chairman and Chief Executive Officer John Schlifske said the company would not pay more for the property.

"With the net O'Donnell sales price of $12.7 million and the $6.5 million of immediate repairs we believe are necessary, we will have invested $19.2 million in O'Donnell," Schlifske said.

Taylor, the supervisor, and other supporters of the sale said the county would be free of the costly, high-maintenance garage and it could shift funds to upgrading other parks. Deferred maintenance at the park has accumulated over the years and Northwestern Mutual estimates it will spend far more than $1.3 million — up to $6.5 million — on necessary repairs.

The company's $12.7 million payment would provide cash for the county to pay off its remaining $6.6 million in debt on the park, along with $1.1 million in interest and other costs, according to county Economic Development Director Teig Whaley-Smith.

The county would net $5 million that could be invested in an endowment fund for maintenance of other parks, Abele said.

In August, an O'Donnell Park Workgroup of officials, including County Comptroller Scott Manske and Parks Director John Dargle, advised the board that retaining O'Donnell Park would be the most expensive option for the county. The cost of rebuilding the parking structure in 2035 was estimated between $57 million and $76 million.

Even in the next few years, net income from parking revenue would be reduced if the county took on debt to pay for roof repairs and other major maintenance, according to the work group report.

"It's a great day for Milwaukee's cherished and nationally acclaimed parks system," John Lunz, president of Preserve Our Parks, a local advocacy group, said in a statement after the vote.

"This vote resulted from tireless efforts by citizens who rallied to communicate to supervisors the urgency of honoring our park legacy," Lunz said.

Twitter: twitter.com/conserve