Proposal for downtown Waukesha hotel appears dead

A plan to put a hotel and convention center in downtown Waukesha appears to be dead as the city and developer disagree about subsidies for the project.

The developer, Berg Management Co., and Waukesha Mayor Jeff Scrima had touted the idea of a new hotel in 2011 and 2012 as another step in downtown’s renaissance. I wrote about the efforts to revive downtown Waukesha, including successes and challenges, for the Aug. 2 print edition.

Berg, which manages many downtown properties, commissioned a feasibility study in 2011 that found the area could support a midsize hotel and conference center at a 6-acre parcel along the city’s riverwalk near Northwest Barstow Street and East St. Paul Avenue. But the company said the project wasn’t possible without assistance from the city, most likely in the form of tax incremental financing. Under that form of assistance, the city would loan the developer money that would be paid back through property taxes.

Scrima said the city was willing to help with the project, but he wanted a “pay-as-you-go” TIF. That would require Berg to spend with money upfront and be paid back through the increase in property taxes. It reduces the risk to the city because if the project doesn’t create the projected property value, it’s the developer that loses the money, not the city.

Catherine Huelsman, Berg general manager, said the project needs more support from the city.

“I think it would put Waukesha definitely on the map, and it would bring in so much business, but I don’t think it’s going to happen,” she said. “There just isn’t the city support for it at all.”

Scrima said the parcel, which is near a 450-car parking structure, is still attractive and has been shown to several developers recently.

“We are confident that the site will still be developed,” he said.

Reported by:  Greater Milwaukee Business Journal