City and developer agree to set aside lawsuit involving Panda Express at Gasthaus site

WAUKESHA - The city's dispute with the developer of a planned Panda Express has almost come to an end, and, soon enough, so will the old Weissgerber building.

The common council has approved a settlement agreement in principle to end a lawsuit filed by CFT NV Developments LLC tied to the redevelopment of a high-profile commercial parcel at Grandview Boulevard and Silvernail Road.

While the agreement doesn't technically allow construction to begin, it will allow the city and developer to continue the planning process in the weeks ahead. No timeline on construction yet exists.

Panda Express, a fast-food-oriented Chinese cuisine chain, would be the featured element of the new development, but other commercial businesses, including a possible coffee shop, will also populate the site once construction is complete.

Genesis of dispute

CFT, a Nevada-based developer, had submitted a plan to the city in 2017 that envisioned a complete reworking of the property that, for decades, has been defined by the presence of Weissgerber's Gasthaus, a German cuisine restaurant that closed in 2016.

But after reviewing the plans, city officials objected to aspects of the development, particularly the flow of traffic in and around the commercial site.

Rather than submit new plans to satisfy the city's concerns, CFT threatened, and followed through on, a lawsuit claiming that the city's actions, in effect, represented a taking of property in violation of state laws.

The disagreement essentially delayed development plans for the site, leaving the vacant Gasthaus and its large parking lot in limbo along one of the city's busiest traffic areas, just south of Interstate 94.

Settling down

Now, the city and developer are willing to remove the legal roadblocks to redevelopment.

City Attorney Brian Running asked the common council on April 17 to technically agree in principle to a settlement, given the tight timeline set by the judge in the lawsuit. The judge had been accommodating about the slow progress of the settlement until recently, when she indicated both parties would have to return with an agreement in place well before the end of the month.

There is no monetary penalty involved in the settlement, and, as spelled out in one provision, neither the city nor CFT is admitting any wrongdoing or any violation of law, right, or contract. Basically, the agreement spells out steps that will be taken to continue with the development process.

The final document must be signed this week. Running asked the council to trust that any minor changes he makes won't be substantive to what aldermen agreed to in principle.

"At this late stage of the game, we can't throw all (the issues) back over here for review and discussion," Running said.

Traffic concern

But several aldermen didn't relent on concerns about traffic along Silvernail Road, particularly how the construction of a new median would limit access to businesses across the street.

"Any modifications to the intersection ... is that something that is going through the Board of Public Works?" Alderman Eric Payne asked, noting the impact the new median would have on the Mobil gas station.

"We are going to adversely affect this person's business," Alderman Kathleen Cummings said.

Running said the traffic flow issues should be dealt with separately, though city officials said staff has previously considered some of the design elements involving Silvernail Road.

"We're not talking about traffic control issues here tonight," he said.

CFT also agreed to contribute $250,000 toward future traffic-related issues and $50,000 to help alleviate access issues involving neighboring businesses.

The council approved the settlement agreement on a 10-3 vote. Peter Bartels also voted against the measure.

Back to the plan

CFT's plan calls for a new Panda Express restaurant, similar to the one that recently opened off Sunset Drive near Meijer, plus other commercial properties housing unspecified tenants.

Regardless, the plan envisions the demolition of the Gasthaus, with its German-themed architecture and decor.

The city has already approved the certified survey made and some permits, and it anticipates approving the remaining permits prior to May 1.