The Community and Economic Development Committee met 01/11/2023. One of the items they took up was a request to amend the development agreement with Merge LLC to extend Merge’s purchase date of the former Blue Ramp location from 02/16/2023 to 09/29/2023. The committee voted unanimously to approve the extension.
I’ve prepared a complete transcript of the discussion.
Basically, the Merge development was planned to take place in two phases. The first phase is currently underway on the southeast corner of E. Washington Street and S. Oneida Street where the former Conway Hotel was located and consists of a 56-unit apartment complex and mixed-use development.
The second phase of the development is intended to take place on the southeast corner of W. Washington Street and N. Appleton Street at the site of the former Blue Parking ramp and will consist of a 75-unit apartment complex and mixed-use development.
Merge, LLC had originally planned to purchase the Blue Ramp site by February 16, 2023 to coincide with the completion of phase one of the project. However, the phase one building is still currently under construction, and completion was delayed due to supply chain issues, labor shortages, and changes in the interest rate environment. Although they still intend to continue with the second phase, they would like to move the deadline for purchase of the site to the end of September to coincide with the new deadline for the completion of the first building.
Economic Development Specialist Matt Rehbein told the committee that the change did not impact anything in the development agreement in terms of what the city had committed to or the benchmarks that Merge had to hit in order to receive TIF support payments.
Alderperson Sheri Hartzheim (District 13) asked if there was value to the city in the delay. Had the city planned to use the funds from the sale of the land prior to September? Would the delay negatively affect the city?
Mr. Rehbein explained that the city would not be affected by the change because the city would only pay out money once the development hit certain benchmarks, and the deadline for those benchmarks had not been changed by the delay in purchase. Additionally, the delay in the sale did not affect the city’s budget because it would still be happening during the 2023 budget year and his understanding was the money had not been programmed to be spent this month.
The committee went on to unanimously approve the change.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1062684&GUID=D0460954-CB11-4102-B9EE-DB1D21D29D95
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