Holly Gilvary
RACINE — City of Racine Common Council is scheduled to vote Wednesday on enhancing the Hotel Verdant project downtown and providing a $9.7 million loan to developers to do so.
If approved, Developers Dominion 12 LLC, Dominion 14 LLC and AOA Racine LLC would redevelop multiple storefronts and buildings in Downtown Racine in Tax Increment District No. 26, which houses the Hotel Verdant project.
According to city documents, the developers want to create a full-service spa at 512 Main St. and a mixed-use property with one retail and four residential units at 222 Fifth St. They also want to demolish the structure at 401 Wisconsin Ave. to construct a parking lot, with a future phase to include the construction of a four-story, 40-unit, market-rate apartment building at 426 Wisconsin Ave.
In return, the city would provide a $9.7 million loan from TID 26 with an annual interest rate of 3%.
If the developer proceeds with constructing the 40-unit apartment building at 426 Wisconsin Ave. within five years, at close of construction financing of the building, the principal on the loan will be forgiven, city documents say.
The city would transfer $5.7 million from TID 9 (the Johnson Building) and borrow $4 million from from the Board of Commissioners of Public Lands for the loan.
Dominion and AOA Racine agreed to the minimum valuation of $4 million for the apartment buildings if the plan transpires, according to city documents.
If the developer does not begin construction on the building at 426 Wisconsin Ave. prior to the end of the interest-only period on the loan, the loan will be re-amortized and bear an interest rate of 5% due in 2040.
More development on the agenda
The Common Council agenda also includes a request to amend the Regency Mall development plan to allow for a multi-family development and a resolution to reward a construction contract for townhomes for the Lincoln King Development Project.
The council approving the Regency Mall amendment would allow for potential apartment buildings at 5326 Durand Ave.
Hull Property Group LLC has proposed five three-story apartment buildings, including about 266 units, according to city documents.
The resolution involving the Lincoln King Development Project includes awarding a $14 million contract to KGI Construction Group LLC for the construction of 33 townhomes.
Developers would build the townhomes on properties acquired by the Racine Community Development Authority on Wilson, West, Prospect, Frederick and Hamilton streets, according to city documents. Each townhome would include multiple units.
Mayor’s veto
Mayor Cory Mason on March 7 vetoed legislation approved by Common Council at its March 4 meeting that would change the structure of council proceedings.
The veto is on Wednesday’s agenda for the council to either approve or override.
Agenda rescheduled from prior meeting date
All the agenda items involving major development plans and the mayor’s ordinance veto were originally scheduled for the March 18 meeting, but the council failed to reach a quorum and the meeting could not proceed.
Common Council on Wednesday is scheduled to consider all items originally on the March 18 agenda.
The council is scheduled to meet at 6 p.m. Wednesday in Room 205 of Racine City Hall, 730 Washington Ave. A livestream of the meeting will be available on YouTube at https://www.youtube.com/@cityofracine.
I lived in downtown and near it for nearly twenty years. Yes, downtown is nice, but so are hundreds of other downtowns in Wisconsin and thousands in the USA. DRC has drained our takes to the tune of millions of dollars that benefit only DRC members. Fuck downtown. Let the stores there experience the real market, not one subsidized by our tax dollars.
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