Council lets mayoral veto stand for now

The Rhinelander Common Council took no action Monday on Mayor Kris Hanus’s Aug. 16 veto of a previously approved settlement agreement with Lincoln Plaza Inc. regarding the property tax assessment for the Walmart building at 2121 Lincoln Street.

Hamstrung by what was described as an inability to publicly discuss the matter, due to the constraints of attorney-client privilege, the panel opted to direct that the  topic be revisited at the group’s next meeting, albeit in closed session so the alderpersons can freely express their thoughts. 

The discussion began with city attorney Steve Sorenson summarizing the history of the matter to this point. On Aug. 12, following a closed session discussion, the council voted to approve a settlement agreement with Walmart resolving its property tax assessment challenge. 

Four days later, Hanus announced his decision to veto that decision.

“After going back and forth about this decision over the last couple days, I concluded that I do not believe that the proposed settlement agreement is in the best interest of the City of Rhinelander,” Hanus wrote in his veto statement. “I respect the council decision to make this agreement, and I understand your reasoning behind it. However, I ask you, as the deciding body, to take another look at this topic and explore other possible options that may better serve the City of Rhinelander.”

“My point of contention is this: the property was assessed at a value of $13 million in 2016. In 2017, the assessed amount was challenged and was reduced — via settlement — to $12 million,” he explained. “In 2022, an addition was added — as was an interior remodel — yet, ultimately, they now believe that this property is worth less. I respectfully disagree. As a $550 billion dollar company, Walmart has the means to pay their fair share in taxes. If anyone in this city deserve a tax break, I believe we should look towards the small mom-pop businesses rather than multinational conglomerates  — ‘the Little Guy,’ who is the backbone of our community and to whom a tax break would make a world of difference. The settlement that was approved by Council would allow Walmart to reduce the amount they pay annually to the school district, college, county, and the city of Rhinelander every year by roughly $30,000 total. To large corporations like Walmart, this amount is merely a small drop in the bucket. To our local agencies, however, this cut could have deep ramifications for years to come.”

Sorenson explained that the council could try to override the veto with a majority vote or do nothing.

An override would result in the council’s previous decision authorizing the settlement agreement being reinstated. 

If the body chose not to take action, negotiations between the parties would continue and at some point the attorneys representing the city would have to come back and secure approval of any new agreement. 

“We are not at liberty to discuss any of the terms of the negotiations,” he stressed. “That’s all part of attorney-client privilege as part of the negotiations that are ongoing.”

Alderman Steven Jopek said further discussion, in closed session, is necessary.

“I feel that the letter that was sent out, because of the attorney-client privilege, doesn’t fully express where the council stood on our vote,” he said. “I think a discussion still needs to be had in closed session to sort through this.”

Sorenson responded that if the goal is to revisit the issue in closed session at the next meeting, the necessary course of action would be to let the veto stay in place.

“With the idea that, at the next meeting, we’ll be able to discuss it and potentially override the veto (or do something else)?” Jopek asked.

“I can assure that legal counsel that is representing us with the negotiations with Walmart is going to want to come back to us and talk to us,” Sorenson responded.

Alderman David Holt agreed with Jopek that the council needs to be able to discuss the matter “fully and thoroughly” and that can only happen in closed session. 

With that, the panel agreed to move on to other business.

To watch the entire discussion on the veto, visit www.hodagtv.com.

Heather Schaefer may be reached at [email protected].