This article explains it a little better: http://badgerherald.com/news/2010/09/22 ... uildin.php
Seems the main problem was them seeking tax exemption. That's a sad loss for Madison and the arts community, Edenfred is a pretty unique place. Property taxes for the place are 22K. Seems like a petty amount to just give up over, considering the deep pockets that fund these kinds of things. You're telling me that one big arts patron cocktail party a year couldn't raise that? Sounds like the neighbors weren't too supportive of the tax thing. Can't really blame them, they've already got the Brittingham House across the street paying no taxes.
Of course now they've opened a can of worms by getting the city inspectors in there. They probably want them to put in a fricking elevator.
Now it can sit on the real estate market for a couple of years.