GREEN BAY, WI (WTAQ) – Five Green Bay aldermen are seeking criminal charges against Mayor Jim Schmitt in connection with the Hotel Northland project.
Aldermen Guy Zima, Chris Wery, Andy Nicholson, Mark Steuer, and Council President Tom DeWane held a Monday afternoon press conference at the Brown County Courthouse to discuss the matter.
The charges the group alleges include: perjury, an ongoing intent to deceive, commission of fraud, and violating the public trust.
Zima says Schmitt and members of his staff knowingly misled the city council and redevelopment authority.
“Mayor Schmitt diverted over $3.2-million dollars in public funds and created defaults in the Hotel Northland’s project funding.”
Zima claims that was not the extent of Schmitt and his staff misleading the city council and redevelopment authority.
“They lied in their efforts to divert $500,000 in a loan of public funds to settle a private litigation between Keith Harenda and Michael Frantz over the ownership of the Northland Hotel.”
Zima was asked if he believes all of that money went toward the project.
“We need an investigative forensic audit to determine that.”
WTAQ asked Zima why he believes Schmitt would do the things that are being alleged.
“I think it all has to do with the mayor’s personality. He thinks he can do whatever he wants, and he has no respect for the law.”
Zima says they have been working on their case since the early parts of this year, citing difficulty in gettings some of the documents they have presented.
While Zima says the complaint was filed three weeks ago, the DA’s office would not confirm to WTAQ that it was received.
Schmitt says he’s done nothing wrong in handling the Northland project’s finances, claiming the accusations are politically motivated.
Late last year, the project’s lead lender pulled its $12.8-million dollar loan, with the bank accusing Hotel Northland’s owners of defaulting on their loan agreement, according to court documents.
Work stalled for a few months as developers sought money to finish the project and pay for work that was already completed.
Earlier this month, a Brown County judge appointed a receiver to finish the project.
Schmitt has said work will resume in November, with a targeted summer 2018 opening.
