Lack of transparency, demo permit issued without signature, failure to represent the public’s interest, and potential conflict of interest among the issues
TINA L. SCOTT
EDITOR
The impending destruction of Merrill’s T.B. Scott Mansion pointed to a lack of transparency and potential conflicts of interest at Merrill’s City Hall. There is also evidence to suggest some of the City’s employees did not represent the public’s interests, as civil servants are commissioned to do.
At the Feb. 22 Historic Preservation Committee meeting/public hearing, Alderman Steve Osness, summarized the harsh reality of the situation: “As of now,” he said, “I think we all need to be realistic … that the Mansion probably will not be saved.”
It was not what most people wanted to hear. But just hours before this writing on Monday evening, Mar. 9, a backhoe started to take down part of the addition to the original T.B. Scott Mansion on the East side of the building, so he may be right.
“That being said,” Alderman Osness continued, “It’s time to look and investigate how and why we might have happened to get to this place. We’re destroying an historical landmark in Merrill. Why? That’s our question. Our City Administration has met with Ascension for the last couple months, and none of this was brought to the Committee for you guys to preserve this landmark. None of this was brought to the Council. I mean, we would have had two months to get on this and work with this, and work with Ascension, but no, we were left in the dark.” [An investigation will reveal the City could have had longer than two months.]
“I also question the timing of the project,” Osness said. “Who really knew what, and when did they know? The City Administration spoke already in December’s report about spending the time in the Mansion salvaging things … for historical value and to give to our Historical Society. It would appear someone would have known at that point the building was going to be torn down.”
“Which brings me to my next question,” Alderman Osness continued. “Alderman Sabatke had stated to the Council that we were not being kept informed and brings up a great point. Our Mayor stated the following in the last Committee meeting to you guys, and these are his exact words, you can look these up: ‘To be blunt, it is not the Alderman’s job to be informed of everything that goes on within the City.’ But yet, the Mayor is invited to a meeting at the Hospital and then is asking the Committee to do an investigation on how we’re here.”
“That’s not correct,” Osness said. He called for the Committee “to at least do an investigation on how we got here. At least, the citizens of the community deserve that,” he said.
Here are some key facts, in chronological order:
July 19, 2018
Excerpt from Dave Johnson’s written Administrator’s Monthly Report submitted as a part of the July 24, 2018, Personnel and Finance Committee meeting packet (on Packet page 134 of 136 page meeting packet) [Note: Only three aldermen are on the Personnel and Finance Committee. This issue was not a specific Agenda item on any subsequent Committee of the Whole or Common Council meeting.v ]
“I spoke with Hospital Administrator Dawn Gapko concerning the status of the Scott Mansion after receiving a phone call from a local resident. The hospital would like a proposal from the City, or any other interested party, to take ownership of the Scott Mansion for a nominal amount with the caveat that the building must be moved from the property. I checked with Schuette Movers on potential moving costs and was told that they gave the hospital a price of $700,000+ seven years ago and that it would most likely be $1,000,000 to move it today. Some years ago an estimate of $2,000,000 was given to restore the mansion to its original condition. Due to its weight, estimated at 800 tons, the Mansion cannot be moved across the river. According to Schuette’s, power to the hospital would need to be cut off for a day in order to drop the lines necessary to get the building off the current site. The weight of the building would crush the pavement on hospital property as the building was moved and all this pavement would have to be replaced at someone’s expense. There is the distinct possibility that the weight of the building would crush the pavement on Highway K.”
“In order to move the Mansion, a site south of its current location would need to be purchased, earthwork performed, a foundation constructed, utilities installed, new HVAC installed, driveway and parking constructed, and landscaping performed, all costs over and above the moving costs. In addition, funds would need to be found for future utility bills (gas electric, water), building maintenance, and some amount of staffing. Dawn said that the building would need to be moved in 3 to 5 years. This is not a project that the City can afford to take on, those interested in saving the mansion should be organizing fund raising efforts now, a potential site for the building should be sought, future uses for the building should be explored, as well as future means of funding upkeep of the building. At the present time we should be placing maintenance orders on the building, it has reached the point of decay that if it were any other structure orders would be issued.”
[Note: There is no record of the City placing maintenance orders on the building. There is no evidence that the City Council or members of the public were informed of the availability of the property or that it was marketed in any way. There is no evidence that any kind of historic preservation studies or written estimates were completed.]
July 30, 2018 – Historic Preservation Committee meeting, from the meeting Minutes
Jeremy Thompson, then Alderman Dave Sukow, Alderman Paul Russell, Mike Weckwerth, and Bea Lebal were the voting members present. A chairperson had not been named so City Clerk Heideman called the meeting to order and agreed to serve as chairperson for the meeting. [For some reason, a chairperson was not elected at this meeting, which may have contributed to no additional meetings being called until Feb. 2021.] Other non-voting attendees present included: City Administrator Dave Johnson, Mayor Derek Woellner, Building Inspector/Zoning Administrator Darin Pagel, City Attorney Tom Hayden, then Alderman Rob Norton, and Glen Patterson. According to the meeting Minutes, during the Public Comment portion of the meeting, “Mayor Woellner commented that he hopes a Historic Preservation Committee chairperson would be in place in time for the next meeting.” Those in attendance reviewed Code of Ordinances Sec. 105-317 (Powers & duties of committee) and Mayor Woellner stated that it appears that anyone can make an historic structure nomination. Mike Weckwerth responded that, although anyone can submit a nomination, the property owner still has the right to refuse the nomination. [I found nothing in the Ordinance to indicate that.]
Mayor Woellner stated that having a building designated as a historic structure could help with obtaining grants, Bea Lebal replied that funding via these types of grants is currently scarce, and Alderman Russell mentioned the Historic Tax Funding Credit program.
The group discussed the potential nomination of T.B. Scott Mansion as an historic structure, and “Mayor Woellner stated that, in his opinion, the majority of people in Merrill would like to see the T.B. Scott Mansion preserved and maintained. He added that it is a Merrill landmark, and he is supporting this historic designation to ‘buy time’ to prevent potential demolition of the mansion.”
“City Attorney Hayden cautioned against detailed discussion on this until the property owner is in attendance at a meeting to participate in the discussion,” which for all intents and purposes appeared to squelch the consideration because “After discussion, it appeared that the majority of committee members would prefer to include the owners in the discussion prior to acting on any nomination. [Note: Nominating a structure gets the ball rolling and then the owner is notified and a public hearing ensues, etc. The property owner does not need to be there, or to agree to the nomination, in order for a nomination to be made or for an historic structure designation to be made. The purpose of the ordinance is to regulate and preserve historic properties, and the owner’s consent is not required in the ordinance.] As a result, Weckwerth made a motion to refer the potential nomination to the next meeting, and to invite the owners of the T.B. Scott Mansion to attend that meeting, Lebal seconded the motion, and it was carried. The Minutes then read: “City staff will ensure the owners of the T.B. Scott Mansion (Ascension Good Samaritan Hospital) are invited to the next Historic Preservation Committee meeting.” [Note: There were no other Historic Preservation Committee meetings held until Feb. 2021 and, notwithstanding Johnson and Hayden knew of the Mayor’s intention to preserve the T.B. Scott Mansion, there is no record that Ascension was invited to set up a meeting with the Historic Preservation Committee at any time.]
July 2018
The following statement was adopted by the Board of Directors of the Merrill Historical Society with regard to the Scott Mansion:
“The Scott mansion has been a part of this community for over one hundred years. The Merrill historical Society’s Board of Directors understands the community’s concern over the future of the mansion. The Society’s financial status, however, does not allow our organization to consider relocation, renovation, maintenance, and staffing of another building. The Board of Directors supports the sale of the building to a party who could restore the structure at its present location or move the structure and renovate it for a new purpose.”
Oct. 15, 2018
Ron Boecker, Regional Director, Medxcel Facilities Management, sent a letter to Darin Pagel, Building Inspector, stating, “We also recognize the desire to preserve the legacy of the T.B. Scott Mansion in a way that adequately captures its historical significance in an efficient manner. We continue to be open to meaningful discussions on the future of the Mansion.” The letter went on to propose a plan to catch up on deferred maintenance between 2018 and 2021. The letter clearly shows Ascension’s intent to preserve the building.
Oct. 16, 2018
David Johnson sends an email to Ron Boecker and Debra Standridge at Ascension. In it, he wrote: “I will be preparing an article for the local newspaper letting residents know that the Scott Mansion will be preserved.” That article dated October 16, 2018, was published and can be found here: https://merrillfotoews.wpengine.com/2018/10/16/a-plan-for-the-t-b-scott-mansion/
Oct. 17, 2018
Excerpt from Dave Johnson’s written Administrator’s Monthly Report submitted as a part of the Oct. 23, 2018, Personnel and Finance Committee meeting packet (on Packet page 110 of 113 page meeting packet) [Note: Only three aldermen are on the Personnel and Finance Committee. This issue did not appear on any Agenda for a subsequent Committee of the Whole or Common Council meeting. ][Note: City Attorney Tom Hayden’s report was also included in this meeting packet and made no mention of a meeting at Ascension to discuss the Mansion.] Here is what Johnson’s report read:
“On 9/26/18 Rod Akey, Darin Pagel, Tom Hayden, and I met with a management team from Ascension to discuss the T.B. Scott Mansion. After looking at the exterior, we went to a conference room to discuss the building. Their Regional President, Deb Standridge, stated their commitment to Merrill and that the Scott Mansion was not going to be torn down. She asked what we needed from them. We stated that we needed a plan for how they would bring the building into compliance with city ordinances pertaining to property upkeep and we discussed what that compliance would entail. On October 16, the City received the following written proposal from Ascension Wisconsin to align with their fiscal years which run from July through June:
• 2018/2019 Fiscal Year: Tuck pointing; cupola/front porch repair; siding/shingle repair or replacement.
• 2019/2020 Fiscal Year: Lead paint abatement and exterior painting.
• 2020/2021 Fiscal Year: Window repair and replacement.”
“Darin and I discussed this and decided to accept their proposal. A written response was sent back to Ascension affirming their proposal. This is a big project and we look forward to its completion.”
Feb. 26, 2020
Meeting of the Board of Public Works, from the Minutes, under the Building Inspector’s monthly report: “Building Inspector/Zoning Administrator Pagel reported that a meeting with the owners of the T.B. Scott Mansion is scheduled for March. The meeting is to discuss exterior maintenance issues related to the building.” [Note: The next Board of Public Works meeting was held May 27, 2020, and there was no mention of any March meeting regarding the Mansion.]
May 21, 2020
Merrill Enrichment Center Committee Meeting, from the Minutes, under the “Discussion” heading: “He [Alderman Paul Russell] also shared there will be a meeting July 30th with Ascension’ s regional manager regarding the future of the Scott Mansion.”
Sept. 23, 2020
Excerpt from Dave Johnson’s written Administrator’s Monthly Report submitted as a part of the Sept. 29, 2020, Personnel and Finance Committee meeting packet (on Packet page 110 of 114 page meeting packet) [Note: Only three aldermen are on the Personnel and Finance Committee. This issue was not listed as an Agenda item on any subsequent Committee of the Whole or Common Council meeting. ][Note: City Attorney Tom Hayden’s report was also included in this meeting packet and made no mention of a meeting at Ascension to discuss the Mansion.] Here is what Johnson’s report read:
“Two years ago this month we met with Ascension representatives to discuss the T.B. Scott Mansion’s status. At that meeting Ascension agreed to repair the building to meet code. Over the next 18 months no work was performed and another meeting was set up. This meeting was put off twice by Ascension ‘due to COVID-19.’ On September 10, Tom Hayden, Darin Pagel, Mark Weix, and I met with representatives from Ascension. At that meeting we were told that after in-house discussions they had decided that they needed to stick to their main mission, which is health care, and expend their resources there. They plan to put the house on the market with the provision that a buyer would have to move the building to another site. I had gotten an estimate of $750,000+ to move the building two years ago if it did not have to go far and an estimate of $3 million for a total restoration. If the Scott Mansion is not sold and moved they would plan to demolish the building after giving the Merrill Historical Society salvage rights for internal architectural features that could be preserved. If I had to make a bet at this time my money is on the Mansion being demolished. I did point out in the meeting that Ascension can expect a lot of adverse publicity locally if the mansion is demolished. I suggested that some of the sandstone blocks from the building be used to construct a base to hold a bronze plaque on-site stating that this was the site of the T.B. Scott Mansion with a short synopsis of T.B. Scott’s importance in Merrill history. The Ascension representatives liked this idea.”
Sept. 22, 2020
David Johnson sent an email to Steve Sabatke, which stated, “I have heard that you have posted on social media that the Scott mansion was to be demolished, if that is true where did you get your information?”
Nov. 19, 2020
Excerpt from Dave Johnson’s written Administrator’s Monthly Report submitted as a part of the Nov. 24, 2020, Personnel and Finance Committee meeting packet (on Packet page 110 of 114 page meeting packet) [Note: Only three aldermen are on the Personnel and Finance Committee. This issue was did not appear on the Agenda for any subsequent Committee of the Whole or Common Council meeting. ] Here is what Johnson’s report read: “Bea Lebal, Pat Burg, and I met virtually with the Administrator of Good Samaritan on November 18 to discuss their donation of items from the T.B. Scott Mansion to the Merrill Historical Society. We scheduled a tour of the building for November 19 to see what we might want to acquire for preservation.”
Dec. 28, 2020
Darin Pagel, Building Inspector, wrote to Jonathon Matuszewski, Chief Administrative Officer for Ascension, “I spoke with Dave Johnson, City Administrator this morning. He informed me that you had met with the historical society in regards to what items they would like out of the Scott Mansion. I’m looking for a timeframe for demolition.” Jonathon Matuszewski wrote back to Pagel: “…we are looking at April 1st as our date.” And, “I ask that we keep this confidential until we are ready to communicate the plan.”
Feb. 15, 2020
Dave Johnson responded to questions about how to save the Mansion via email saying, “Both the exterior and interior of the mansion require extensive work. The building is not in need of improvements, the building is in need of extensive renovation to address years of deferred maintenance, both aesthetically and structurally. … Today a demolition permit application was received by the City. The first step will be asbestos remediation followed by demolition. Through an agreement with Ascension the Merrill Historical Society has been permitted to identify items in the mansion that will be saved and turned over to the Historical Society. These include fireplace mantels, decorative tile, stairway newel posts, door hardware items, a stained glass window, and other items.”
And also: “The City of Merrill does not have the financial resources to save the mansion – $700K to move and $2-$3M to renovate, plus all the attendant future costs. The decision to demolish the mansion has been made by a private party for private property they own. Would I like to save the mansion – yes, is it realistic – no.”
Feb. 15, 2020
Mayor Derek Woellner responds to questions via email: “The City should do everything within our power to prevent the demolition of the mansion. Unfortunately, we don’t have much power to do so at the moment. We would if the mansion was designated as a historic structure, but it’s currently not. I asked the Historic Preservation Committee to review their powers and duties back in July, 2018 and to discuss nominating the T.B. Scott Mansion to be designated as a historic structure. The committee seemed uncomfortable with designating a structure without the property owner’s consent.”
“The City has tried to work with the current owner to maintain the property, and we thought we had found a solution when they agreed to do some exterior maintenance. However, this morning, the city processed a permit to demolish the mansion.”
“The permit is good for 45 days so the clock is ticking. If the Historic Preservation Committee meets and makes a recommendation to designate the mansion as historic, then the City Plan Commission needs to notify the owner at least 10 days before a public hearing on the matter, and publish a Class 1 notice, and then only after that public hearing can the official designation be made. The ordinance also states ‘the owners shall have the right to confer with the plan commission prior to final action,’ which to me suggests they have the right to stall.”
“The key question the committee raised in 2018 still stands today. Should the government be making historic designations, which limits what the owner can do with the property, without the owner’s consent?”
“In this case, I personally believe we should, and this scenario is exactly why we have the ordinance in the first place. The powers to override the will of the property owner because ‘the building is of such historical significance that its demolition would be detrimental to the public interest and contrary to the general welfare of the people of the city and state’ exists for a reason. The power seems extreme, but it was wisely spread across two Committees with a clear and fair procedure laid out. I can’t guarantee how the Committees would vote, or if the process can be done in time, but it should be attempted and this is likely the last chance to act.”
Conflicts of interest and special treatment
Per Merrill Code of Ordinances Sec. 2-110(1)(b), the City administrator “means the person responsible for carrying out the directives and policies of the mayor and common council, subject to statutory limits which may apply. It is the intent of this subsection that the administrator shall have clear authority to coordinate and administer the day-to-day operations of municipal government as specified in this subsection.”
Merrill’s own 2017 Personnel Manual, on page 12 in section 3-2 titled “City Administrator,” includes the same language.
Further, the Merrill Code of Ordinances, Sec. 2-186. – Responsibility of public office reads: “Public officials and employees are agents of public purpose and hold office for the benefit of the public. They are bound to uphold the Constitution of the United States and the Constitution of this state and carry out impartially the laws of the nation, state and municipality, to observe in their official acts the highest standards of morality and to discharge faithfully the duties of their office regardless of personal considerations, recognizing that the public interest must be their prime concern.” This is again reiterated in the Code of Ordinances, Sec. 2-188.(b) – Fair and equal treatment: “… No official or employee shall grant any special consideration, treatment or advantage to any citizen beyond that which is available to every other citizen. No official or employee shall use or attempt to use his position with the city to secure any advantage, preference or gain, over and above his rightful remuneration and benefits, for himself or for a member of his immediate family.
It appears several City of Merrill employees, including but possibly not limited to City Administrator Johnson, City Attorney Tom Hayden, and Building Inspector Darin Pagel, acted contrary to these ordinances when they: a) Put the interests of a private business ahead of the interests of the public insofar as the preservation of the T.B. Scott Mansion was concerned, in that they kept Ascension’s plans secret until the actual demolition permit was issued and, even then, disclosed only minimal amounts of information in response to direct questions; and b) Issued a demolition permit even though the Application for the permit was not completely filled out and was never signed by anyone on behalf of Ascension or Good Samaritan (both the application and the permit were issued in the name of Good Samaritan Health Center) as owner of the property.
In addition, Johnson and Hayden also entered into a conflict of interest when they, as members of the Board of the Merrill Historical Society, did use their knowledge of the impending demolition to discuss with and to arrange for a private tour of the Mansion for Johnson along with Pat Burg and Bea Lebal of the Merrill Historical Society, for the purpose of identifying artifacts for the direct benefit of the Merrill Historical Society, to obtain artifacts from the Mansion for the Historical Society’s private collection. Hayden is on the Board of Directors, Johnson is a member and Secretary of the Board of Directors, and Lebal is a member and President of the Board of Directors, all of the Merrill Historical Society. [Note: Lebal is also a member of the Historic Preservation Committee. When that Committee convened in Feb. to vote on designating the T.B. Scott Mansion as an historic structure, though likely too little, too late, Lebal voted no.]
Adding insult to injury
In a Feb. 18 interview with WAOW Newsline 9 regarding the impending demolition of the T.B. Scott Mansion, Johnson is quoted as saying, “All of a sudden when the eminent demolition is here, ‘Oh, let’s quick do something to save it.’ Where were people 20 years ago? Ten years ago? Five years ago?” Johnson said.
It’s safe to say “those people,” the concerned citizens of Merrill and beyond, never actually thought the Mansion would be demolished and that, certainly if it were slated for demolition, there would be an opportunity to save it, before a demolition permit was issued. But most residents still thought Ascension would repair and maintain the Mansion.
And why would they think that?
Because in 2018, Johnson himself said so in an article published in the Merrill Foto News on October 16, 2018, saying just that.
Then, when Ascension decided to demolish it instead and asked Johnson to keep the information confidential, he did so, putting the interest of Ascension above the public interest. He never told the public that the T.B. Scott Mansion was slated to be demolished.
Then he put the his personal interest, as the Secretary and a member of the Merrill Historical Society Board of Directors, before the interests of the public, by taking steps to secure artifacts from the demolition for the Merrill Historical Society.
But, he maintains, this is simply a matter of a private party deciding what they will do with their own private property.
Then, in that same television interview with WAOW, Johnson said, “Basically what we have here is a property issue. Ascension will be selling the hospital and all the surrounding property to Aspirus. The mansion is being torn down as part of that sale.”
That was interesting to hear because earlier that same day, when asked that same question via email, Johnson responded: “That confirmation must come from Ascension, not from me. While it is my understanding that it is the ‘desire’ of Aspirus to have the mansion gone before they take over the property, I have seen nothing in writing nor do I have the right to see their documents since this is a transaction between two private parties. In short I do not know for sure that this is the case, just what I have heard.”
Summary
In summary, it appears that contrary to the public interest, Ascension’s publicly stated intent to preserve the T.B. Scott Mansion, and Ascension’s agreement with the City to preserve the Mansion, at the request of the owners, City staff worked in secret with them to plan the demolition of the T.B. Scott Mansion.
The City Council, the Merrill community, readers, and certainly this writer, are left with a long list of questions. More questions than answers. One thing is for certain: Long after the dust settles on the demolition of the T.B. Scott Mansion, and the tears over the loss of this historic structure have dried, Merrill residents and the Aldermen who were kept in the dark until it was too late to save the Mansion, will be looking for some answers.