Green Bay, WI (WTAQ) – The developers of a 91-year-old hotel in downtown Green Bay say they now have the keys to the building and will begin work this week to start demolition.
According to a news release sent out Tuesday and dated Monday from the Hotel Northland‘s branding and marketing agency, Frantz Community Investors and Keith P. Harenda of KPH construction can now start the restoration of the nine story building after finally closing on the property.
Frantz Community Investors – the lead on the project – has said that the complex financial makeup of the $44 million plan has made closing on the property difficult over the year.
In April, the the final – and needed – pieces of funding for the project were announced: private financing and federal loan money.
Plans call for the building to be turned into a boutique, 160-room hotel with two full-service restaurants, catering, event space, a fitness center and spa, all while restoring the building to its historical grandeur.
The hotel is expected to employ 166 people full-time.
“It’s quite a Christmas gift for us,” said Mike Frantz, one of the founders of Cedar Rapids, Iowa-based FCI in the news release.
“As everyone knows, we are eager to get underway. While all levels of financing in this complicated transaction have been in place for some time now, inter-creditor agreements were needed to address owner’s equity, tax credits, City incentives and various loans from financial institutions and state and federal entities.”
The release named those involved in the closing as FirstMerit Corporation as the lead bank, the City of Green Bay, Department of Housing and Urban Development (HUD), Wisconsin Housing and Economic Development Authority (WHEDA), FirstPathway Partners and U.S. Bank as the purchaser of the historic tax credits.
In April, Frantz announced that FirstMerit Bank will provide more than $14 million in private loan financing; State and Federal Historic Tax Credits and grants would make up about $8 million; a federal $4.7 million HUD loan, cash and city tax reimbursements would make up the rest.
Water will be run to the building, locks will be changed and a debris chute will be installed at the hulking structure at the corner of Adams and Pine streets, according to the news release.
After 45 days, the developers hope to announce a completion date – tentatively targeted for next fall.
“The hard part is over,” said Frantz in the release. “Now the job of restoring this treasure and building the hotel team begins.”
