A lawsuit has put the fate of the Wisconsin Veterans Museum in question, according to The Capital Times, potentially delaying a key Capitol Square development. The museum was set for a renovation as officials there say the current space is insufficient to showcase the museum’s substantial collection.
Initial plans would have spent $9 million of state money to purchase the property from private owners, who have been leasing part of the building to the state for years. The rest of the facility is office space.
The funding had received the approval of lawmakers who oversee upgrades to state-owned buildings, and the sale was expected to close at the end of March, but the companies who own the property — Madison Real Estate Properties, 308 West Mifflin LLC, Madison East Shopping Center LLP and Mansail Development LLC — have resisted sales attempts.
The owners filed a lawsuit in November after the state moved to exercise its option to buy the building, with the landlords citing their own plans for the site upon the expiration of the state’s lease later in 2025. The building owners’ attorneys say the lease language was unclear concerning whether the state had the ability to purchase the entire building, as well as whether the option could be extended.
The owners argue that the state did not discuss the sale with them, generated an artificially low appraisal to reduce the sale price and “breached its duty of good faith and fair dealing by repeatedly making misrepresentations to the public” regarding the future of the museum.
Additionally, the owners say the state defaulted on the terms of the least by missing one month’s rent payment. The Department of Administration, which manages state buildings, said that the November 2023 rent payment delay was due to software issues.
