Milwaukee Northridge Mall; judge denies stay, requests raze plan

MILWAUKEE - Property owners of the old Northridge Mall are fighting a judge’s decision to allow the demolition of the Mall on Friday, Nov.11.

The owners of the mall properties, U.S Black Spruce Enterprise Group, asked the Milwaukee County judge for a stay, but the judge denied it and asked for a raze plan instead.

"I want to see a plan within one week. And I want it to be a credible plan," said Judge William Sosnay.

Judge Sosnay ordered the property owners, to put forward a raze plan and file it with the court by next Friday, Nov. 18. The city must also put forward a raze plan in two weeks. The judge also updated the judgment to $187,000 for additional accrued fines.

The raze plan would outline how much time Black Spruce needs to demolish the old Northridge Mall.

"I want you to be up and running should an appellate court affirm this decision," said Sosnay.

Black Spruce argues that razing the building while they appeal will cause them to suffer irreparable harm. The owners offer to secure the building and comply with the city ordinances.

The judge said it was too late to comply with the city’s orders, and no changes have been made before the court date.

"Nothing has been done by Black Spruce to comply with the terms of the agreement or to do what they’re suggesting they’re now going to do," said Sosnay. "When I give an order, I expect it to be complied with."

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Judge Sosnay said that if Black Spruce’s plans to re-develop the property that was never materialized; they should have maintained it. The judge calls their claims of Harm ’extremely Disingenuous.’ The judge noted the only measurable change to the property was the installation of no-trespassing signs.

Since the summer of 2022, Black Spruce has racked up thousands of dollars in daily fines.The judge said the fines will continue until the owners follow the argument and motions set in court.

"The judgment shall be for $189,000," said Judge Sosnay. "Until such time that Black Spruce backs up the words they’ve set forth in their argument and motion to the court."

According to Judge Sosnay, Black Spruce is disregarding the law and causing a blight on the property. 

From fires to trespassing and vandalism, for years, the old Northridge Mall building has been the center of conflict over safety and your tax dollars.

The city issued raze orders for the properties in 2019. Black Spruce appealed and had those put on hold. The case was sent back to the lower court, where Judge William Sosnay ordered the raze orders enforced and a $2,000 daily fine for not securing the properties.

"When the property owners do not secure that property and folks are able to get in and start these fires, it puts the lives of our first responders at risk," said Mayor Johnson. 

Northridge Mall owner background

Northridge is partially owned by Black Spruce Enterprises -- a group that sued Milwaukee in an effort to stop the planned demolition of the building.

In April 2019, the city issued raze orders to Black Spruce for the property, citing vandalism and the fact that the cost to repair the property exceeds its value -- something the company and its Milwaukee law firm, Foley & Lardner, disputed, filing a formal appeal in late May, saying the orders for demolition came as "a surprise to Black Spruce -- unilaterally issued with no prior warning."

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In early June 2019, Black Spruce released renderings with plans to turn the property into an Asian market -- hoping to reopen the facility in spring 2021.

Black Spruce appealed the raze orders to the City of Milwaukee Standards and Appeals Commission, which affirmed the raze orders based on city ordinance which says demolition is allowed "if the cost of such repairs would exceed 50% of the assessed value," if repairs are deemed unreasonable and if the building is declared a public nuisance.

The civil lawsuit said the presumption that repairs were unreasonable was rebuttable but noted the Standards and Appeals Commission refused to hear evidence regarding this.

Black Spruce received the order denying the appeal from the commission, finding the raze orders reasonable, in July 2019.

The suit noted that 30 days after a decision from the commission, a company impacted by a raze order can apply to the circuit court for a restraining order to prevent the building from being razed -- which is what Black Spruce did in August.

A Milwaukee County Circuit Court judge upheld the city's raze orders.

Black Spruce appealed, and in March 2022, the Wisconsin Court of Appeals reversed the circuit court’s decision and sided with Black Spruce.

The appeals court said the circuit court "improperly based its findings on the cost to repair the buildings" and, therefore, was "unable to determine the reasonableness of the raze orders."

The case was remanded to the circuit court "with instructions to apply the appropriate standard" articulated by the court of appeals.

The City of Milwaukee filed an emergency motion in July 2022, and a hearing was scheduled on that motion for Monday, Aug. 15.