Not everyone is thrilled with the downtown resurgence that’s being sparked by the Confluence Project.
For at least one downtown nonprofit organization, the general optimism about increased demand for downtown rental space translates into being priced out of the rental quarters it has occupied for 12 years. It’s clearly an unintended consequence of the arts center project, but it’s a reality for The Wellness Shack.
That organization, which provides support from peers to people struggling to live with conditions brought on by mental illness, is facing a move from 515 S. Barstow St. when its lease expires at the end of the year. It was told by Investment Realty, which owns the building, that the suite it occupies will be extensively renovated and upgraded, and that the new rent will at least triple.
Robert Schrader, president of The Wellness Shack’s board, said the organization appreciates the fact that Investment Realty has kept the rent low – possibly artificially low – over the years. It’s currently $600 a month, and Schrader said the landlord indicated that it will rise to between $1,800 and $2,400 a month after the renovation.
That amount is simply beyond the organization’s budget capability, he said.
“We’re looking to the community for help,” he added.
More Interest in Downtown Space
Asked what factors contributed to the landlord’s decision to renovate and raise the rent, Schrader pinpointed expectations for increased demand stemming from the Confluence project.
“Everyone is anticipating there’s going to be all sorts of business coming into the downtown,” he said in a telephone interview.
Schrader said The Wellness Shack was advised two years ago that the success of the Confluence Project could produce downtown rent increases, but it was able to budget for a total of only $1,000 a month. Even that would have been a 67% increase.
A Difficult Choice
Schrader noted that The Wellness Shack board faces a challenging budget dilemma.
“Do we divert money from the programs, groups and activities that we provide people in order to fund our rent,” he asked.
That could be counterproductive because much of the organization’s funding is based on program outcomes, which would be weakened if funds were diverted from program support to rent, he said. Schrader noted that nearly half of the organization’s income is provided by the state of Wisconsin, and “they want to see numbers” indicating how many people benefitted from programs, to measure their effectiveness before continuing to fund them.
“It’s a catch-22,” he said.
Usage Has Increased
The Wellness Shack has reported consistent increases in the number of people who have used its services since it was established in 2004. Five people were served in the first year, and by 2015 that total had risen to 261. On average, 20 to 25 people come to The Wellness Shack on any given day.
Most of those people look for support and understanding from people who have faced similar challenges in living with mental illness, according to a press release from the organization. Programs at The Wellness Shack work through support groups, informal and formal peer support and socialization techniques to keep people from escalating into a mental health crisis.
“Anyone who has been to The Wellness Shack understands how beneficial our services are to the mental health recovery and stability of people living” in the Chippewa Valley, Schrader said. “What we need now is someone to step forward who has a suitable place and is willing to work with us on the costs of leasing.
“We also need additional funds to cover the costs of remodeling and moving,” he added. “Without financial help from our community, it may be that The Wellness Shack will be forced to close its doors.”
Looking for an Alternative Site
Schrader noted that there are two people on The Wellness Shack board with real estate experience, and that United Way of the Greater Chippewa Valley is also trying to assist in finding affordable space that meets the organization’s needs.
Schrader said the organization is looking for 2,500 to 3,000 square feet of space that’s on a bus route and close to community services, most of which are located downtown. The best case scenario would be a facility with direct access from the street.
The worst case would be one where visitors had to walk down a long hallway, which would only serve to increase the anxiety and skittishness that many of them feel already, he said.
“Our search so far has shown us that our landlord, Investment Realty has been very generous to us over the years,” Schrader said. “Commercial space that is equal to or less than what we occupy now is almost twice the amount of what we anticipated.”