Deal reached to tear down Horizon West Condominiums

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WAUKESHA — The city has reached a deal with owners of the Horizon West Condominiums that may see the building razed this fall, if not earlier, with the city covering costs of razing the structure unless the owners win a reversal of an insurance ruling in federal court.

In a settlement announced Friday, the city and the Horizon West Condominium Homes Association agreed on a plan to demolish the structure. The city filed suit against the association and 65 residents of the condo last October, seeking to have enforced the raze order it issued on the West Avenue property in early 2022.

The residents were suddenly evacuated from their homes in the 49-unit, sixstory building on Dec. 2, 2021, under order by the city. According to the complaint in a federal lawsuit, sometime before June 5, 2020, members of the Horizon West Condominium Homes Association noticed instability in the building’s balconies. Engineers and contractors concluded water of unknown origin got into the building and caused significant rusting of the structural steel.

See CONDOS, PAGE 8A

The Horizon West Condominium, 315 N. West Ave., was evacuated suddenly in December 2021 due to concerns about structural integrity. The city has reached a settlement with the owners' association that may see the building torn down as early as Oct. 1, if not sooner.

Brian Huber/Freeman Staff From Page 1A

The building had been insured for up to $17 million. Last fall, U.S. District Judge Lynn Adelman sided with the building’s insurer, Travelers Indemnity Company of Connecticut, finding the losses the residents experienced were not covered by the policy in place at the time, and several exclusions to coverage applied. That ruling has been appealed.

Under the terms of Friday’s settlement, the city agreed to raze the building, which has been vacant since residents were allowed to return to move out in the weeks after their evacuation, no earlier than Oct. 1, but will have access to the site to prepare it for demolition and in case of emergencies. If at any time the city determines the building’s structure has weakened enough to pose a danger to the public health and safety, it can proceed with razing it earlier.

As to the costs of the demolition, if the residents prevail in their federal appeal of the insurance ruling, they would reimburse the city those costs. If that doesn’t happen by Sept. 30, the city will pay the costs and charge them to the property in the form of a lien — a process Assistant City Attorney Miles Eastman said is dictated by state law. He added the lien would have to be satisfied before any sale of the property.

"The bottom line is were going to raze it some time on or after Oct. 1 and meantime, the owners get to pursue their lawsuit against the insurance company in the hopes they get a payment from them and then if they do they will be paying the costs associated with razing the property," Eastman said.

Michael Ganzer, attorney for the residents, declined to comment much on the matter Monday, saying, "There’s not much I can say about it. It’s an agreement between the parties and I got to leave it at that. I can’t really comment."

But he did say the settlement does not mean his clients are "off the hook."

He added the parties are still awaiting a hearing date in the federal appeal.

Eastman said he did not have a firm number at this point as to what the razing costs might be. Ganzer, too, said he didn’t have specific numbers at this point, "but we know it is substantial."

Throughout the past 18 months, the specter of bankruptcy by one or more of the owners has been raised. Ganzer said "there is always a discussion about that."

When asked how his clients are faring, he said, "All I can tell you is they are hanging on. It’s been very difficult," Ganzer said.