Council votes to more than triple rent for ThedaCare clinic

MANAWA – The Manawa Common Council voted last week to raise the monthly rent for the city-owned ThedaCare Physicians-Manawa clinic, increasing the rate from $700 to $2,500 per month.

The rate increase comes amid increasing building maintenance costs and a dispute with healthcare executives over property upkeep expenses.

The city will issue a formal letter notifying Froedtert ThedaCare that the increase will take effect on Aug. 1, 2027, aligning the fee change with the clinic’s lease renewal date.

Under a municipal lease agreement dating back to 1973, the City of Manawa acts as landlord for the facility at 425 2nd St., assuming full responsibility for exterior and structural maintenance.

Rent for the two-story building has remained unchanged since 2008. It was noted at a June council meeting that the original intent of the low-cost lease was to ensure a primary care physician remained accessible within the community.

Finance and Personnel Chair Mary Eck said the committee calculated the $2,500 figure by considering inflation, rising upkeep costs for the late-1960s two-story building, and the fact that rent had not been increased in 18 years.

During council discussion, it was noted that the current $700 monthly rate is below commercial market standards. Council members noted that much smaller commercial properties in town rent for higher amounts.

Eck said that providing nearly a year’s notice of the rent increase gives ThedaCare sufficient time to include the $2,500 monthly rate into its upcoming operational budget.

The rent increase follows a dispute over property damage related to snow plowing. In a certified letter sent in June, ThedaCare Chief Financial Officer Will Flett demanded that the city replace the clinic’s deteriorating parking lot and reimburse a neighboring resident $1,500 for lawn cleanup after winter snowplowing.

City officials rejected the $1,500 reimbursement request, telling the council that ThedaCare hired a private subcontractor to handle snow removal, rather than municipal crews.

The city did take steps to deal with the deteriorating parking lot. While a quote for new asphalt pavement exceeded $40,000, the council approved a $12,250 bid in July to excavate the lot and install 5 inches of compacted asphalt millings.