Tom Daykin

Milwaukee Journal Sentinel

The city is bringing a condemnation case against the former Northridge Mall — an effort that could eventually help redevelop the long-closed property on Milwaukee's far northwest side.

An order from the Department of Neighborhood Services, posted Thursday, demands the mall's owners, a Chinese investors group, demolish the 900,000-square-foot building because it's dilapidated and a threat to public safety.

That could lead the city itself to demolish the former mall, which closed in 2003, and then bill the cost to the property owner: U.S. Black Spruce Enterprise Group Inc.

Once demolished, the land beneath the the building and its parking lots, totaling around 100 acres north of West Brown Deer Road and west of North 76th Street, could be used for light industrial buildings, housing or other new developments.

A representative for Black Spruce couldn't be immediately reached for comment. The property owners could go to court to fight the demolition order.

The condemnation order is about public safety and health, not real estate development, Mayor Tom Barrett said.

City building inspectors have repeatedly issued orders over the past year for Black Spruce to make repairs at Northridge after people have broken into the mall — some of them removing items to sell for scrap.

People illegally entering the property are putting themselves at risk, city officials say. And the mall's dilapidated state also raises concerns about asbestos exposure and other environmental issues.

Ald. Chanita Lewis, whose district includes Northridge, said trespassing at the mall increased after YouTube personality Casey Neistat in 2017 released a video showing a "Winter Wonderland" he created in a partnership with Samsung and the Boys & Girls Clubs of Greater Milwaukee.

Repair costs

A raze order can be issued when the estimated cost of repairs exceeds 50% of a building's value.

The preliminary repair cost estimate is $6 million, said Tom Mishefske, commissioner of the Department Neighborhood Services. That work includes replacing the roof and making extensive repairs to the electrical, plumbing and heating systems.

The building assessed value is just $81,000, he said.

"The legal threshold for issuing a raze order has been met," Barrett said.

Black Spruce has not proceeded with plans to remodel the mall into a trade mart for Chinese manufacturers to sell their toys, furniture, clothing and other goods to North American vendors.

Those plans were announced after Northridge was sold in 2008 for $6 million. The building has remained dormant since then.

Both Lewis and Barrett told reporters that the mall's owners haven't responded to their demands for action.

The mall has been "the bane of my existence," Lewis said.

Boston Store demolition

The condemnation case comes after Department of City Development officials in March said the mall's former Boston Store will be demolished to make way for a future light industrial development, or other new use.

Department officials are seeking a $250,000 grant from the Wisconsin Economic Development Corp. to help finance the demolition of that city-owned building.

If the city receives the grant, officials would need additional money sources to demolish the 153,000-square-foot building.

Penzeys Spices owner William Penzey gave the former Boston Store property to the city in 2017.

Penzey gave the former department store to the city after dropping plans to convert the building into office, assembly and distribution space for his spice business.

As for the rest of the former mall, the city could demolish the building if Black Spruce refuses to do so.

City officials have been considering possible ways to pay for that costly work, Barrett said.

That tab could run from around $10 million to $12 million, according to a preliminary estimate from city public works officials.

The city could add the demolition cost to the former mall's property tax bill.

If that bill goes unpaid, the city could then take ownership of Northridge through property tax foreclosure.

No specific plans have yet emerged for the 100-acre site.

But other former retail buildings near Northridge have been converted to light industrial space.

And Department of City Development officials have recommended additional such projects for the area.

Retail decline

Northridge's last remaining store shut its doors in 2003 after years of eroding sales at the mall.

The loss of a regional mall led to a big decline in retail traffic on Milwaukee's far northwest side.

Nearby chain store closings since then include Target, Toys "R" Us, Pick 'n Save, Dunham's Sports, Value City Furniture, Big Lots, Best Buy, Circuit City, Stein Mart, A.J. Wright, Kids "R" Us and Office Depot.

However, there has been increasing demand for light industrial space in the Northridge area.

That includes the recent conversion of the former Target Store, 8501 W. Brown Deer Road, into a new facility for Midwest Refrigerated Services Inc.

When Northridge opened in 1972, it was among the few larger shopping destinations in the trade area that includes Milwaukee's far northwest side, Brown Deer, Menomonee Falls, Mequon and Grafton.

Especially since the early 1990s, several competing shopping areas have opened or expanded.

Meanwhile, the apartment buildings near Northridge saw an influx during the 1980s of lower-income residents, who took the place of middle-income people with more spending power.

The mall also was hurt by not being located near a freeway interchange — unlike Southridge, Mayfair, Bayshore Town Center and Brookfield Square — and by fears of crime, both real and perceived.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.