A proposed 100-unit apartment complex along the St. Croix River in Osceola, Wis., violates state St. Croix River protections and impedes views along the river bluffs, a Polk County Circuit Court Judge ruled Thursday afternoon.

The three-story, $25 million “Osceola Bluffs” development would rise above the tree canopy along the river bluffs, and would prove to be “visually conspicuous” from the river, wrote Judge Daniel J. Tolan. His ruling reverses approval from the Village of Osceola, and sends the project back to the drawing board.

Osceola officials have 30 days to appeal the ruling.

Development along this area of the St. Croix River is bound by Wisconsin state statute, which lays out standards for the Lower St. Croix River National Scenic Riverway.

Reaction

The apartment complex was approved by Osceola officials last July, and was contested by a group of local residents known as the St. Croix Scenic Coalition. Throughout the approval process, coalition members questioned the proposed building height and the visual impacts, eventually leading them to file the lawsuit last August.

“The decision clearly puts an emphasis on preserving our national scenic riverway,” said James Johnson, attorney for the St. Croix Scenic Coalition.

Reached Friday morning, Osceola village officials said they disagree with the decision, and are currently reviewing possible options with their attorney.

“This proposed development is an excellent use of the old hospital site, was thoroughly vetted by the Village, and complies with all applicable state and local regulations,” Devin Swanberg, village administrator for Osceola, wrote in an email to the Pioneer Press. “The Village Board will discuss the matter with the developer and determine how it will proceed.”

The project

An architectural rendering of the proposed 100-unit apartment complex in Osceola, Wis. (Courtesy of Gaughan Companies)

Plans for the project in question were brought forth by Forest Lake-based developer Gaughan Companies. The new build would have sat on the current grounds of the long vacant site of the former Osceola Medical Center, located at 301 River St. While medical center operations moved more than 15 years ago, the now dilapidated structure still sits idle on the 4.2-acre parcel.

Plans call for the complex to rise just over 44 feet. Town ordinances set maximum building heights at 35 feet in that part of Osceola near the St. Croix River. In July, the Village of Osceola Board approved three permits for construction.

Drone footage

In Thursday’s ruling, Tolan wrote that the earlier Osceola village board decision to approve the project was heavily based on a drone video from last June.

That video showcased different heights of the proposed building, but as members of the St. Croix Scenic Coalition contested, the video showed potential heights that were six to 13 feet lower than they would have been if the drone had used the average ground elevation of about 816 feet.

In response to that video last summer, St Croix Scenic Coalition members created a surrogate balloon test, showing that any building over 26 feet would reach the tree canopy. Last July, St Croix Scenic Coalition member Pete Paidar had performed a different 40 foot balloon test at various parts of the site in order to show the proposed dimensions.

Tolan’s order mentioned those tests in describing how the building height would be received, writing that the decision of Osceola officials that the project was visually inconspicuous was unreasonable.

Housing needs

Supporters of the development have pointed to the need for housing – Polk County Economic Development Corporation officials previously found that Osceola will need to add 151 to 162 rental units during the next 16 years.

The apartment complex would have had 100 apartments, underground parking, 2,500 square feet of retail space, and 2,700 square feet for a future restaurant.

In terms of next steps on the development site of the project, Gaughn Companies officials said they will continue to work with Osceola officials to potentially find a solution.

The issue will be trying to develop a project that is still economically viable in a market with ever-rising costs, said Dan Hebert, Gaughan Companies Senior Vice President of Commercial Accounts. The project as created is right-sized for the market, and for the town, he said. Losing a floor of apartments, for example, would no longer make the project viable.

Current eyesore

The former Osceola Medical Center building in downtown Osceola, Wis. (Courtesy of Google Street View)

Even still, in terms of what is currently at the space, both sides agree that the current eyesore is untenable long-term.

“My clients have been supportive of responsible site development; no one wants the existing structure there,” Johnson said. “It should have been removed years ago. As far as what should be there, as long as it’s not something conspicuous from the river, my clients will support it.”

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