Green Bay, WI – The Green Bay City Council voted 11-1 to approve a proposed deal on the Hotel Northland, a decision that will result in the city losing over $1 million. The hotel is being sold to avoid foreclosure, and the city was owed $2.6 million as part of a loan with the current ownership.
Deal Details
The $2.6 million comes from a $4.4 million U.S Department of Housing and Urban Development loan. According to Green Bay Mayor Eric Genrich, the deal allows the city to make some payments on the front end for several years and then potentially figure out another strategy to pay the balance of the loan.
304 N Adams Street Green Bay LLC, the current owners, are now released from the rest of the money they owed. A 2014 development agreement and four amendments through 2018 have been terminated. The city has $550,000 in a reserve account related to the loan with the hotel owners, resulting in overall losses of just over $1 million.
The buyer, Tertium Development, plans to maintain the name of Hotel Northland and keep it as part of the Marriott Autograph family. The company’s Co-Founder and Chief Investment Officer, Blake Malecha, expressed excitement about the property, stating that it has the potential to be restored to its old glory.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
