GREEN BAY, WI (WTAQ) - The Green Bay City Council approved one major project for the downtown but voted to hold off on another at Tuesday night’s meeting.
The council approved a development agreement with Dermond Property Investments to build a 93-unit mixed use retail/apartment complex at the corner of Walnut and Washington in the downtown.
The building would be located along the Fox River next to Nicolet Bank, which is currently using the site as a parking lot.
Dermond has said the "Metreau" project would be a $14.8 million investment.
However, on a 7-5 vote the city council decided to hold off on the sale of the city’s newly acquired Clarion Hotel.
The hotel has been on the market for five years and was in receivership, a type of bankruptcy. The city purchased the property for $2.85 million and was going to sell it to the current management company for $2.7 million.
The city’s deal with the American Hospitality Management would include the guarantee of a minimum of $4 million investment towards renovations, plus the city would secure an estimated $500,000 in airspace rights above the hotel for the future expansion of the KI Convention Center.
Council members thought the city could get a better deal and didn’t want the city to be out $150,000, the difference between the purchase price and selling price.
Mayor Jim Schmitt was upset at the council’s actions.
“They chose not to accept that, something’s not right here, so I have to look at this and possibly veto this decision because we need protect the taxpayers and we need to continue the development in the downtown,” Schmitt said after the meeting.
The city never put out bids on the property, they only talked with American Hospitality Management.
An unknown hotel developer recently came forward expressing interest in the city owned hotel.
At the meeting, Alderman Tim DeWane says the developer talked about a $10 to $12 million investment.