#Wausau Riverfront Development

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Sterling project for Wausau riverfront moves forward

The roughly $52 million project from Mosinee-based S.C. Swiderski, LLC proposes 200 apartments in the seven-story multi-family building, the Sterling, and a separate five-story parking structure.

Damakant Jayshi The Wausau Plan Commission on Tuesday approved a general development plan for a mixed use residential and retail project proposed for the city’s Riverlife District. There have been some changes since the development agreement was approved by the Wausau City Council in April, company officials told the Plan Commission on Tuesday. Now the number of retail spaces will be five, up…

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Man convicted of luring investors to Colorado real estate scam now leads financing of $100 million Wisconsin redevelopment project

Riverlife Village site

More than 10 years after a former Denver man was charged with securities fraud for his role in an $8.3 million real estate scam, he continues to make monthly restitution payments to his victims.

But Jason Sharkey’s criminal background hasn’t stopped him from becoming a key player in an $80 million to $100 million riverfront redevelopment project in Wausau, Wis., that’s funded in part by city money, according to records from the U.S. and Canada.

The first phase of Riverlife Village is now under construction on 16 acres of city-owned land in Wausau, a community of about 39,000 people 100 miles west of Green Bay, with Sharkey running the project’s financing through a company he founded called Quantum Ventures.

“That’s insane. That’s just crazy, that’s what that is,” said Broomfield resident Thomas Severino Jr., one of many investors lured into the Colorado scam by Sharkey. He and his wife invested $40,000 with Sharkey, who still sends them about $15 per month in restitution.

Neither Wausau Mayor Robert Mielke nor economic development director Christian Schock, returned calls about Sharkey’s background.

Sharkey, 41, acknowledges his criminal case in Colorado, but explains that as the regional vice president of a Canadian real estate venture, he too, was a victim of the elaborate fraud. He said he and his wife lost $134,000 in the deal.

“I never knowingly lied about the fund,” Sharkey said in a written reply to a series of questions from The Denver Post. “I fully cooperated with the state of Colorado in this matter as I did not knowingly take investors’ money for a fraudulent fund or intentionally try to steal money from the company or investors.”

Shereen Siewert, publisher of the Wausau Pilot & Review, has written a series of articles exposing the questionable credentials of key developers involved in the Riverlife Village project, which Sharkey’s company became the development lead for in January.

Siewert — with help from The Denver Post — also uncovered the criminal case in which Sharkey was ordered to repay $692,642 to victims.

Jefferson County criminal records and U.S. District Court documents indicate Sharkey courted Colorado investors on the golf course, promising high yields on their money.

At the time Sharkey was serving as vice president of Klytie’s Global Real Estate Fund based in Calgary, Alberta, Severino said. Klytie’s owners hired Sharkey with salary of $52,000 annually in 2005.

When Severino requested an audit of Klytie’s financials, a Christopher L. Klaus of KPMD Financial Services of Toronto emailed a financial report. But Severino later learned Klaus was fictitious and the company didn’t exist.

On Aug. 25, 2005, Sharkey organized a golf tournament at Heritage Eagle Bend Golf Course in Aurora to raise money for Gilda’s Club Worldwide, a nonprofit organization supporting cancer patients that was founded in honor of actress and comedian Gilda Radner, who died of cancer in 1989. During the tournament, Sharkey guaranteed investors a 10 percent return on whatever sums they put into Klytie’s, court records show.

Sharkey’s boss, Hidai Friedman, told investors his wealthy uncle in Israel directed the company. Friedman also told investors the company owned properties in Panama, the Cayman Islands and Israel. All the company needed, Sharkey told investors, was a bank and the company was negotiating to buy one in Phoenix, the lawsuit says.

Sharkey met investors in the Cayman Islands, where he showed them beach-front housing developments he claimed were Klytie’s projects, court records show. A company brochure boasted the company had 14 parcels around the world worth $52 million, and it also claimed to build low-cost housing in developing nations.

But investors grew frustrated when Klytie’s failed to provide them with basic tax forms and other information.

When Sharkey learned in late 2006 that the company was under investigation in Colorado, he resigned, he said in the email to The Denver Post.

“Being an investor myself, I was just as surprised as anyone when the full extent of the Friedmans’ fraud was revealed,” he wrote.

Thomas Ritchie, a securities investigator for the Alberta Securities Commission, found that two $11 million properties Klytie’s claimed to own in Vancouver, British Columbia, didn’t exist. A home the company claimed was worth $3.8 million was actually valued at $150,000. And the company didn’t own a large shopping mall it claimed.

The Alberta Securities Commission fined the company $220,000 and forbid it from selling securities in Alberta for 25 years, according to a June 5, 2007, settlement agreement.

Sharkey said he didn’t do any work in Canada for the company.

Jefferson County prosecutors charged Sharkey with five counts of securities fraud and one count of theft in 2007. He received a two-year deferred sentence in April 2008. Two owners of Klytie’s, including Friedman, also were indicted.

Sharkey was allowed to move to Wisconsin midway through his deferred sentence. Charges were dismissed when his term was completed.

Despite the fact he continues to receive restitution payments, Severino is critical of Wausau officials who approved Sharkey’s involvement in their project.

“They are doing an injustice to their city,” he said Friday. “I would demand that they do a background check on everyone involved.”

But Sharkey said the experience of being duped himself taught him a valuable lesson of needing to do “one’s own due diligence.”

“This unfortunate legal matter from more than 10 years ago has been resolved and will have no impact on the Riverlife project,” Sharkey wrote.

“All potential investors and lenders are aware of what occurred and the position I was placed in as an unwitting investor and employee of Klytie’s.”

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Wausau mayor's veto upheld in contentious discussion

Damakant Jayshi Wausau will not spend taxpayer money on a consultant to redevelop the city’s north riverfront, after a veto by the mayor was upheld amid a sharp debate on Tuesday. City planning staff asked to go ahead with a request for proposals seeking a consultant for future projects with a cap of $100,000. The cost is already in the 2024 budget, but no money would be spent if the council…

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Wausau mayor vetoes council plan for north riverfront consultant

In his release, the mayor flatly questioned whether the area should be a priority for the city.

By Shereen Siewert | Wausau Pilot & Review Wausau’s newly-elected mayor on Monday vetoed a plan to hire a consultant for a north riverfront redevelopment plan, a proposal approved last month by the City Council. In a news release issued Monday, Mayor Doug Diny cited the need for more careful spending in light of a “double-digit property tax increase for many residents” that resulted from a…

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Wausau committee selects developer for Riverlife South residential project

As Wausau seeks to develop an area on the riverfront south of WOW, here's what is emerging as a front-runner:

Damakant Jayshi Wausau’s Economic Development Committee on Wednesday selected Milwaukee-based Wangard Partners, Inc. for a proposed Riverlife South area residential development project. The full City Council has the final say on whether to move forward with the plan, which includes 135 residential units but does not propose retail or office space. The committee made the decision in a closed…

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2 developers vie for Wausau riverfront projects

T. Wall Enterprises and Wangard Properties both submitted materials as the city seeks a vision for Riverlife South. Here's what the proposals look like.

By Shereen Siewert | Wausau Pilot & Review Wausau’s Economic Development Committee this week will review materials submitted by two developers interested in projects in the Riverlife South area, according to city documents. South Riverlife concept. Source: Wangard proposal, city of Wausau Of the two, just one submitted a detailed proposal, responding to a May Request for Interest call from the…

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Wausau seeks consultant for north riverfront development planning

What would you like to see on the city's north riverfront?

Damakant Jayshi Wausau will seek a consultant to prepare a plan for developing the city’s north riverfront, after a vote Tuesday by the Wausau City Council. The Council voted 7-4 to authorize a request for proposals with an estimated budget of $100,000. Alders Carol Lukens, Michael Martens, Tom Neal, Gary Gisselman, Lisa Rasmussen, Sarah Watson and Chad Henke voted in favor and Alders Terry…

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Wausau committee rejects plan to hire consultant for north riverfront development

The proposal from the city's planning staff to issue a request for proposals at a maximum of $100,000 is still in play, as the Wausau City Council will have the final say in the matter.

Damakant Jayshi A proposal to hire a consultant to strategize development on the north riverfront in Wausau failed at the committee level this week, amid concerns over cost and the length of time to clean up environmental contamination in the area. The proposal from the city’s planning staff to issue a request for proposals at a maximum of $100,000 is still in play, as the Wausau City Council…

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Wausau negotiates Riverlife maintenance as development plans move forward

The Wausau Parks and Recreation Committee on Monday recommended that a developer spearheading a housing project along the city's riverfront assume responsibility for maintenance of a portion of riverfront trail property.

Damakant Jayshi The Wausau Parks and Recreation Committee on Monday recommended that a developer spearheading a housing project along the city’s riverfront assume responsibility for maintenance of a portion of riverfront trail property. S.C. Swiderski will also be required to pay park dedication fees at the rate of $200 per apartment for their roughly 200-unit complex, said Parks Director Jamie…

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Developer pulls Wausau concert venue proposal

The development team behind The River is pulling the project from Wausau and will pursue a venue elsewhere in the region.

Damakant Jayshi The team behind a proposed concert venue near the riverfront is withdrawing the project, citing what they call Wausau’s lack of required financial and logistical infrastructure to support such a venture. “In our discussions with (city) staff following our June 6 presentation, we have learned that the city is not in a position to handle required infrastructure improvements, both…

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Indoor green space plans still underway at former Wausau Chemical building

Infused will procure and supply produce, beverages, crafted oils, syrups, bitters and garnishes in an environmentally sustainable space. Plans are continuing.

Wausau Pilot & Review Plans for a public indoor green space at a former Wausau Chemical building on the city’s east riverfront are continuing, with improvements underway. The Wausau Economic Development Committee on Wednesday approved a request to extend the one-year occupancy deadline for the project, called Infused. The space is being developed by Asch Properties, LLC, at 180 E. Wausau…

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Wausau riverfront redevelopment earns national award

National honors go to Wausau, engineering services company, for Wausau Riverfront Development

Wausau – The city of Wausau and engineering services company Stantec recently earned the Public Works Project of the Year – Small Cities/Rural Communities Award by the American Public Works Association for their work on the Wausau Riverfront Development.

The Wausau Riverfront Development provides more than 2,200 feet of public trail along the Wisconsin River shoreline, laying the groundwork for a…

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Wausau mulls 5 proposals to steer south riverfront redevelopment

Wausau will take a look at 5 proposals to steer possible redevelopment efforts south of Scott Street along the river's edge.

By Shereen Siewert

WAUSAU — City leaders on Tuesday will consider five proposals from companies interested in spearheading possible redevelopment efforts on a second stretch of shoreline south of an area already under construction.

A request for proposals was issued earlier this year seeking a market study and redevelopment plan for an area along the Wisconsin River and River Drive south of…

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Wausau seeks new proposals for Riverlife development

Wausau is now actively seeking a new developer for the Riverlife project.

By Shereen Siewert

WAUSAU — City leaders are seeking a new developer to spearhead the troubled Riverlife development project, which has become mired in a legal snag that ground the project to a halt earlier this year.

A request for proposals (RFP) dated May 25 assumes the current development agreement with Barker Financial, LLC, will be terminated, though Barker still has a limited window to cure…

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Riverlife Village: A timeline (so far)

A timeline of the Riverlife project and its partners (so far), compiled using public records, meeting minutes, state financial records and court documents.

By Shereen Siewert WAUSAU — More than two years have passed since city leaders chose one of two contenders to develop roughly 16 acres along Wausau’s east riverfront. Since then, the process has included a dizzying array of adjustments and changes to the players involved in the project. Planning for the transformation has long been in the works; the city in 1995 began buying up properties along…

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GUEST COLUMN: Moving the riverfront project forward

In his latest column, Keene Winters offers his opinion on how to move forward on the riverfront project.

by Keene Winters Would a rose by any other name smell as sweet?  Maybe or maybe not. Certainly company names can be deceiving, sometimes lending an aura of respectability and gravitas where none exists. So, it is time to put away the series of limited liability company (LLC) names like Frantz Community Investors, Barker Financial and Quantum Ventures and speak plainly. Keene Winters served two…