City disputes ThedaCare parking lot cleanup bill

MANAWA – The city is weighing its future role as landlord of the ThedaCare Physicians-Manawa clinic location amid a dispute over a deteriorated parking lot and a $1,500 yard cleanup bill.

In a certified letter dated June 11, Froedtert ThedaCare Chief Financial Officer Will Flett demanded the city promptly repair the clinic’s parking lot at 425 2nd St. and reimburse a neighboring property owner for damages caused by winter snow plowing.

“As you may be aware, the parking lot at ThedaCare Manawa Clinic is in a state of significant disrepair and in need of replacement,” Flett wrote. “The deterioration of the parking lot has led to operational challenges and complaints from neighboring property owners.”

Under a lease agreement dating back to 1973, the city serves as the landlord and is responsible for the property’s exterior and structural maintenance. ThedaCare currently pays $700 a month in rent for the site.

Neighboring resident Jeff Austin submitted a $1,500 bill for 30 hours of labor spent removing large chunks of concrete, asphalt and gravel that were pushed onto his lawn by snow plows clearing the clinic’s parking lot this past winter. The bill noted there will be additional charges for top soil and grass seed.

City officials rejected responsibility for the cleanup bill during last week’s Common Council meeting. Director of Public Works Josh Smith said that the city did not perform the snow removal and said the clinic’s privately hired plowing subcontractor is responsible for the property damage.

ThedaCare’s letter also stated that city officials committed to replacing the parking lot in 2026 during a June 2025 meeting. Smith disputed that at the council meeting, clarifying that he only stated replacing the lot was a “goal” for the upcoming budget, not a firm guarantee.

The city recently received a quote of more than $40,000 to replace the parking lot with fresh asphalt. Smith said he is pursuing alternative quotes to grade the lot using “millings,” which is crushed, recycled asphalt. Smith said using millings would be less costly while remaining solid enough for plowing. He added that the lease agreement with ThedaCare does not stipulate the parking lot must be paved with new asphalt.

Alderman Jim Roenz said that the original intent of the low-rent lease with ThedaCare was to ensure a doctor remained in the community. The maintenance costs; however, have city leaders questioning the financial viability of keeping the property.

Council members discussed potentially attempting to sell the building. Previous talks about a sale to ThedaCare stalled after the medical provider’s offer fell well below the city’s expectations.