Judge approves Northridge foreclosure, Milwaukee takes ownership
MILWAUKEE - After years of unpaid property taxes, it took just three minutes for a Milwaukee County judge to foreclose on the embattled and derelict Northridge Mall on Thursday morning, Jan. 25.
Judge Glenn Yamahiro entered judgment in favor of the city of Milwaukee for taking ownership of three parcels owned by U.S. Black Spruce Enterprise group. City records show U.S. Black Spruce owes more than $1.2 million in property taxes dating back to 2018.
The city began tax foreclosure proceedings against the properties in October 2023. Attorneys for U.S. Black Spruce, nor the owners behind the group, appeared in court. A message sent to the attorneys was not immediately returned. U.S. Black Spruce has 45 days to appeal the ruling.
Northridge Mall property, Milwaukee
"It’s a shame, I spent time working at Gimbel’s, Red Lobster in the late 70s," said Yamahiro, regaling the gallery of a handful of city officials and journalists of his childhood exploits at Northridge Lakes and the nearby mall. "But here we are. The court will enter judgment."
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The foreclosure is separate from the raze order issued by the city to U.S. Black Spruce Enterprise group, which is currently being appealed. A stay is not in place, meaning the city could move forward with demolition.
The city approved the use of $15 million in ARPA funds for demolition earlier this month. At a recent committee meeting, the city said it could start demolition on a portion of the mall already owned by the city this month, with the rest of the demolition likely taking place in the middle of the year.
Northridge Mall property, Milwaukee
"The goal is public safety," said Benji Timm, a project manager with the city’s redevelopment authority, during a January 9 committee meeting.
"We take the property on the 25th," said Alderman Michael Murphy, "that’s kind of like checkmate."
But fellow alderman Bob Bauman questioned the possible legal exposure the city might have if it moved forward with demolishing the property under the raze order, only to have it remanded or reversed by the appellate court.
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"My take on potential damages would be, they would be limited – should (U.S. Black Spruce) have proved any damages by the raze of the property - they would be limited to the value of the property at that time," said assistant city attorney Hannah Jahn, who handles tax foreclosures for the city, noting it would be a negative due to the cost to bring the properties back into code compliance.
"The other point is we have separate independent basis for foreclosure of the property and city acquisition of property, which, essentially, once the city has acquired it and owns it – there would be no more standing on behalf of Black Spruce."
In the raze order case, circuit court Judge William Sosnay ordered the U.S. Black Spruce owners to appear in-person at the next hearing in April.