ArtStart has its galleries and runs many of its programs out of the old federal building on the corner of Stevens and Kings streets in downtown Rhinelander.
More than a decade ago, the City of Rhinelander voted to purchase the empty former post office from the federal government for $1 and leased it to ArtStart.
Part of that lease agreement meant ArtStart pays for maintenance and repairs which have added up to more than $340,000 dollars at this point.
Now, the building needs to replace its boiler. The boiler was installed in 1919 and retrofitted in 1965.
Despite recent emergency repairs the building dropped to about 46 degrees this winter. Then once it was fixed, the building overheated to 80 degrees.
“We have to continue to shut off the boiler so that we can regulate the heat back down to a manageable temperature and then Pray that it reignites again,” ArtStart Program and Operations Director Ashley McLaughlin told Rhinelander City Council at Monday’s meeting.
The repair company has told ArtStart it can no longer guarantee they can source parts for the old boiler. That leaves replacing it at a cost of about $185,000.
“Frankly, ArtStart cannot afford this. This might force us to no longer occupy the building,” said McLaughlin. “If we cannot heat the building, we cannot be in the building. We will probably be okay through the summer, but we are concerned about it and our future in the building.”
McLaughlin asked the city council to share the costs.
ArtStart secured a grant from Focus on Energy for up to $50,000 which would cover for first year of the loan. McLaughlin suggested the next four years of the loan could be split between ArtStart and City of Rhinelander with each paying about $15,000.
At minimum, ArtStart would need the city to sign on with the loan since they’re the owners of the building.
McLaughlin also talked about the city adjusting the lease agreement and future needs of expanding the building, saying ArtStart was outgrowing the space.
“We’re in a partnership right now, and I'm just asking you to think about all these things, discuss it, and maybe come and aid us in fixing this boiler,” she said.
City council couldn’t address the lease or future expansions as only the boiler was on the agenda.
City Administrator Patrick Reagan says while it may only be $15,000 a year, the city has already had to make cuts to make the budget work.
“You had to cut a position to make this budget work, because health care expenses are going up,” Reagan said. “They aren't going to go down next year. They will not go down, and it's going to get tighter and tighter and tighter. Whether it's something you guys want to hear or not, it's the absolute truth.”
Some city council members pointed out that the city might have to take on more of the costs for replacing the boilers if ArtStart leaves the building and they try to lease or sell it to someone else.
“Either way, the boiler has to get fixed. I think the fact they're willing to partner in that, and we share the cost, it makes it a whole lot easier to swallow than us having to replace a boiler, or them having to replace a boiler,” said Alderperson Carrie Mikalauski.
Complicating matters is the status of the building and the timeline they’re working under.
Any changes, like replacing a boiler, needs to be approved by the National Park Service. If the city ever wanted to sell the building, they would need to get it appraised, sell it at fair market value, and then pay the federal government that amount.
To get the grant funding, the boiler needs to be installed by the end of this year. Waiting too long could possibly raise the cost of the new boiler.
Jake Teunas with Johnson Controls, the boiler company, told the council he expects its going to take eight to ten weeks to get through some of the logistics and state requirements for this kind of installation.
“That kind of puts our time crunch more into a faster approval process, due to the engineering taking a couple weeks. Add, worst case scenario of 10 weeks, on top of that, we're already pushing towards the end of the summer right now,” said Teunas who said new boiler should go in before it gets cold again. “That's the biggest concerns I would have in regards to getting this thing pushed through, because we don't want to go to September and have to fight this boiler again.”
City Council was tied 3-3 to table the decision.
Mayor Kris Hanus broke the tie vote to table a decision until next meeting.
