GREEN BAY, WI (WTAQ-WLUK) – As part of a packed agenda, Green Bay’s city council voted last night to place the stalled Hotel Northland project into receivership.
Receivership means an independent third party would take over decision making for the project.
Mayor Jim Schmitt tells WLUK the move keep the project solvent and on a schedule that’s realistic.
“At the end of the day, it’s all about money. We now have real money if we go the receivership route.”
Schmitt and city staff have negotiated with Octagon Finance to provide the necessary money to finish the hotel’s renovation and pay subcontractors for work they’ve already done.
Octagon believes that total cost is likely between $24 million and $25 million.
JP Williamson is with Octagon Finance.
“We are firmly committed behind getting the project open, getting the subs paid, having it open to the standard that we all anticipated when we got into this project, but we’re willing to do so in the receivership process.”
Keith Harenda is the hotel’s current owner. He has been unable to secure financing to finish the hotel.
Mike Frantz, Harenda’s former paretner, told the council that he does have the money.
“If we go down that path, I’ll proceed aggressivley and quickly to get it done. If we don’t, I’ll move on and do other things.”
Some council members wanted time to look if Frantz’s offer had merit. Plus, there was also concern that the receivership option was moving too quick.
In the end, the council voted 7 to 5 to pursue receivership. The other junior lenders for the project still need to sign off on receivership.
Schmitt hopes a judge will choose a receiver within the next month. Schmitt says the new goal is for the hotel to open by July of next year.
The city council agreed to support a new development agreement for the Rail Yard. That’s the property formerly known as Larsen Green.
A development group led by Titletown Brewing Company plans to continue renovating the property’s old warehouses for a mix of office, commercial, and residential uses.
The developer also plans to build 20 high-end town homes along the Fox River.
And, on a 10 to 2 vote, the city council passed a resolution supporting the county’s room tax plan to replace the Brown County Arena.
The county wants to use room tax revenue to pay for most of a new $93 million expo center.
A county board vote tonight is the only remaining vote needed to move the plan forward.
If the room tax plan passes, the county would also move forward with a half percent sales tax increase to pay for a variety of other infrastructure projects.