The Community Development Committee met 02/26/2025. The one item on the agenda was a request from Merge, LLC to extend the purchase date of the lot that formerly housed the Blue Parking Ramp to 05/01/2025. The agreement originally called for the lot to be purchased by 02/16/2023 but that deadline had been extended several times. The extension until 05/01/2025 is supposedly the last extension and will provide the developer time to complete the sale of another property in order to raise the capital needed to complete the purchase of this site.
The committee voted 5-0 to recommend approval of the extension request.
I’ve prepared a transcript of the discussion for download:
Merge already owns and has developed the lot on the southeast corner of Washington Street and the City Center alleyway which was Phase 1 of their development project. Phase 2 of their project is the development of the lot directly to the west of that on the site where the Blue Ramp used to be located. The purchase of the Blue Ramp site has been put off several times, most recently in November of 2024 when it was moved to 02/28/2025 wait for DNR clearance, Phase 1 to reach full lease up, and “the need to wait for suitable financing conditions”.
Economic Development Specialist Lily Paul told the committee that the developer was having some trouble securing financing. She listed interests rates and the fact that 2024 was an election year as reasons why the bank was not willing to give him what he was looking for. As a result, he was going to sell a property he owned in order to secure financing. The developer was asking for a closing date on the Blue Rampp site of no later than 05/01/2025.
Community Development Director Kara Homan told the committee that the developer was three weeks away from closing on the $14 million sale of a multi-family building he owned in Waterloo, Iowa which would give him the capital he needed to move forward on his next projects.
Alderperson Sheri Hartzheim (District 13) asked what the worst case scenario would be for the city if he did not procure financing by that deadline. Ms. Paul responded that the worst case scenario would be that the city did not sell to him and put the property back on the market. In that situation the city would probably put out a request for proposals to find a new developer, but that process would be lengthy and would not happen right away.
That, of course, presumed that the city would not offer to amend the agreement and provide another extension.
Alderperson Martyn Smith (District 4) asked if there would be benefit to extending the deadline beyond 05/01/2025. Director Homan said there would not be a lot of harm in extending the deadline and mentioned May 15 as an option, but 05/01/2025 had been the date mutually determined by the developer and city staff.
The committee ended up voting 5-0 to approve the extension of the purchase date to 05/01/2025.
View full meeting details and video here: https://cityofappleton.legistar.com/MeetingDetail.aspx?ID=1256190&GUID=522B7564-E6E3-4935-8E19-B87199F00C8F
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