GREEN BAY, WTAQ (WTAQ-WLUK) - In a marathon meeting, Green Bay's city council members expressed anger, frustration, and demanded answers on what is going on with the $44 million Hotel Northland project.
Alderman Joe Moore accused Mayor Jim Schmitt and city leaders of making changes to the project's development agreement without committee or council approval.
Schmitt defended the changes as being typical administrative moves.
“One of them makes like a 25 percent reimbursement that I think somehow turned into cash up front, I don't know how that is administrative,” said Moore.
“Our intent has always been to get a successful project,” said Schmitt. “That's what we have to do.”
City Council President Tom DeWane asked for an outside financial audit of the project after accusations were made public that the Northland developers defaulted on their largest loan.
The senior lender for the project has pulled its $12.8 million loan. The developers have said they do not accept those claims.
“There is a process involved in approving all payments to the project, “said Brigette Breitenbach, a spokesperson for the Northland project.
“That process is thorough. It makes the review and the approval of all the stakeholders that are involved in the project.”
Speaking on behalf of Northland developer Keith Harenda, Breitenbach asked to talk more about the project in closed session.
Before that happened, Harenda's former partner, Mike Frantz, stepped forward to share his side of the recently dissolved development team.
“It's been like a lot of partnerships, you have your ups and your downs. You disagree and so on.”
Frantz says issues with the project's former top bank could have been avoided if Harenda had listened to him.
However, Frantz also admitted his own financial problems might be preventing the project from landing a new senior lender.
“My credit wasn't as strong as when we first started. That is just a fact. I'm going to lay it all out there and tell you exactly what is going on so we don't have to go in this closed session or whatever.”
Despite his differences with Harenda, Frantz wants to see the project to its end. However, he admits, it's not the same project city council members signed off on.
“I just feel a little duped that we voted on something and we're getting a different bill of goods now,” said Alderman Mark Steuer.
After a lengthy closed session discussion with the developers, council members returned to say they'll wait 30 days before deciding whether an outside financial audit is necessary.
The goal is a deal with a new senior lender will be finalized in that time.