Unstable walls at Badger State Lofts causes safety concerns
$30 million in renovations were completed in 2020
SHEBOYGAN — Two unstable walls at Badger State Lofts in Sheboygan are causing safety concerns and alarm for those who live in the apartment building.
The apartment building, located at 1031 Maryland Avenue, opened to residents in September 2020. An out-of-state developer purchased the former Badger State Tannery in 2019 and converted the complex into 118-unit apartments. Consisting of one to four-bedroom loft-style units, the City of Sheboygan sees this building as an important part of their housing strategy.
However, unstable walls at Badger State Lofts can be seen at the intersection of South 10th Street and Maryland Avenue. Scaffolding with orange construction fencing was placed on the public sidewalk surrounding the building last year. However, no work has been observed at the intersection. When looking closely, you’ll see a substantial sized crack running down the east brick wall and the south wall that appears to be leaning in. Due to the scaffolding, the public sidewalk has been inaccessible for months in the neighborhood the city has sought to redevelop.
The owner of the building, Indianapolis-based KCG Companies, provided WKTS News with the following statement:
"For the past several months, KCG Companies has been urgently working with consultants to address the failing retaining wall at Badger State Lofts, recognizing that it poses a serious safety risk to our staff, residents, and neighbors. We're working on finalizing the best solutions for our proposal to the City of Sheboygan and the Historical Society, subject to their approvals to resolve this critical issue.
We are grateful to hear that the City is actively considering this issue and is committed to collaborating with us to eliminate the immediate risk. We respect the historical nature of this building, and hope to agree on a solution that is best for public safety."
Anna Folwell, Director of Brand Strategy
KCG Companies
It is not clear what retaining wall Folwell is referring to as the walls in question are part of the building and several feet above ground. "Building Inspection has been made aware of this," said Taylor Zeinert, the city's Director of Planning & Development. She confirmed the Department of Public Works has also been made aware of the situation. Zeinert did not say what action the city is taking to address the failing walls.
KCG Companies also owns Exchange at 104 on South Main Street in Fond du Lac along with 18 other housing projects throughout the United States.
While $30 million in renovations were completed in 2020, several residents who live in the building have complained about living conditions. “It took four years to go from beautiful to ghetto. Now we have bedbugs in the building,” said Debbie Davis. “We’re on manager number five in four years.” Another resident stated windows are leaking and he posted photos of the damage online.
WKTS News spoke with a resident who was unaware the walls were unstable. The resident, who declined to give their name due to fear of retaliation, wondered why the scaffolding was on the sidewalk and not closer to the building. After being shown the walls, he questioned why work to repair the walls has not been completed by now.
The Wisconsin Housing and Economic Development Authority (WHEDA) awarded KCG Companies with Capital Magnet Funds, and the City of Sheboygan provided also financial assistance in the form of a Tax Incremental Financing District. In 2019, the city utilized $90,000 of federal Community Development Block Grant (CDBG) funds to purchase land from the developer to be converted to a future park with fishing access to the Sheboygan River. As of today, the land remains vacant and city officials have no active plans to construct a park as originally proposed.
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