City staff and the Monroe developer told committees an updated development plan for the Monroe project — a mixed‑use housing development near Michigan and Monroe streets — requires a $1 million increase in the redevelopment commission’s forgivable loan to bridge a construction cost gap.

Caleb Bauer, executive director of Community Investment, told the committee the project’s total private investment rose from about $13.7 million to $17.7 million. The city is proposing increasing its forgivable loan from $2.3 million to $3.3 million, funded from the River West TIF allocation. Bauer said the forgivable loan would be forgiven only on successful project completion; if the project failed to complete, the loan would remain a standard loan with market interest.

Developer Devorah Peters described a bid that came in roughly $5 million over budget on an earlier contractor in 2023. She said the team spent 2024 value‑engineering the design, changed general contractors to reduce costs and deferred 50% of her development fee to help the budget; the revised plan reduces the unit count by three but adds an extra unit at the lower income tier. Architect Donald Veil explained design changes: elimination of the mezzanine, conversion to fully wood‑frame four‑story construction, a reoriented outdoor amenity on the northwest corner and preservation of primary brick facades along key street frontages to retain a high‑quality street presence.

Why it matters: The Monroe site sits amid several downtown projects and is part of the city’s broader downtown revitalization goals. Staff said the River West TIF district is expected to generate substantial distribution revenue this year and that available cash would cover the amended forgivable loan if council and the Redevelopment Commission approve the change.

Formal action: The Community Investment Committee voted to send the amendment ordinance (Bill 36‑25) to the Committee of the Whole with a favorable recommendation; roll call recorded unanimous support in committee. Staff reported the forgivable loan would remain contingent on completion and that no additional city funding beyond the amended amount is expected.

Next steps: The amendment goes to the Committee of the Whole and full council for final action. The developer said closing is underway and, if the amended agreement is approved, planned closing could occur late next month followed by construction.