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The 1897 Gund Brewery bottling plant near Gundersen Lutheran Medical Complex may be remodeled into loft-style apartments.

This month, the La Crosse Common Council will consider a request by Gorman and Co. of Madison for a zoning change from heavy industrial to planned development district to allow the proposed $11.9 million project.

"We want to develop it appropriately and create some tax base," said Jerry Arndt, Gundersen Lutheran senior vice president for business services. "Its current state is not in the best interests of Gundersen Lutheran, the neighbors or the city. It has good potential, and we are exploring turning it into a much more valuable asset."

The restoration would be a dramatic change in the area, said City Planner Larry Kirch, who described that portion of South Avenue as an under-developed mix of commercial and light industrial.

"We're hoping this becomes a catalyst to dress up the area," Kirch said.

According to information provided by the project architects, McFadden and Co. of Madison, architecturally incompatible additions on the building's east and west side would be removed and a three-story addition would be built over parking.

All told, the old brewery and addition would include 85 efficiency, one-, two- and three-bedroom apartments, with building amenities such as a community room, gym, Internet cafe, business center and theater.

The Gund building would be Gorman's first project in La Crosse, said Tom Capp, executive vice president. But the 21-year-old company has done similar projects, mostly in Wisconsin, in cities such as Milwaukee, Madison, Kenosha and Racine, he said.

Gorman has remained the property management company on McFadden's projects for at least 15 years, Capp said.

The project is in the planning stages, and several pieces -- including zoning, historic tax credits, financing and bidding -- still must fall into place, he said. Gorman hopes to arrange financing that will not involve the city, Capp said.

The company usually follows an initial project with several more in the same area, he said. Since coming to Racine four years ago, Gorman has done three projects, including converting an old feed mill into apartments, Capp said.

"We started talking with La Crosse three years ago," he said, "but it wasn't until recently that we found the right building."

What makes the Gund building a good choice, he said, is that it's a historic building near a key employer, with potential to become loft-style apartments. The company's preliminary rent estimates for two-bedroom apartments range from $500-plus to $900, he said.

Sara Lee Corp. gave the building to Gundersen Lutheran in 2003. Gundersen Lutheran would sell it to Gorman, which would begin construction in September, with completion expected by Aug. 31, 2007.

The property could be the centerpiece of a tax incremental finance district that could help pay for a parking ramp later, Arndt and Kirch said. A TIF allows tax revenue from new tax base to remain in a specific area for a set time rather than going into general tax revenue.

"This property, as well as other Gundersen Lutheran projects, could be included in a TIF, with the hope that a TIF could help finance a badly needed parking ramp," Kirch said. "The neighbors want parking to go up rather than out."

The building, which started as a bottling plant for the Gund brewery, has had many uses, including bakery, truck repair and storage.

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