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Authority grants option for temporary ground lease for former Badger Sheet Metal site to speed redevelopment
Summary
The Redevelopment Authority granted an option to execute a ground lease with General Capital Acquisitions LLC so the developer can obtain site control and begin construction activities while demolition and EPA cleanup grant closeout continue.
The Green Bay Redevelopment Authority on June 17 authorized an option to enter a ground lease with General Capital Acquisitions LLC for parcels at the former Badger Sheet Metal site, allowing the developer to secure site control and begin work while the city completes environmental remediation and grant closeout steps required by the U.S. Environmental Protection Agency (EPA).
City staff told the authority that demolition and remediation work — partly funded by a U.S. EPA cleanup grant — is expected to start within weeks, but that federal closeout of the cleanup grant could lag. The temporary ground lease gives the developer exclusive rights to construct on the site under a triple‑net ground lease while the city retains title until EPA grant closeout allows an eventual sale or fee simple transfer.
Why this matters: Staff and the developer said the temporary lease is a tool to keep the redevelopment timeline on track while the authority complies with EPA requirements that the city retain ownership until remediation grants are closed. The project discussed at the site would include a new fire station, administrative offices and mixed housing, according to city staff.
Lease structure and risks A representative for General Capital said the proposed ground lease is structured as a triple‑net lease in which the developer bears responsibility for construction, insurance and most operating costs while the city retains fee ownership until federal grant closeout. The developer said the ground lease will provide the site control needed to apply for tax credits and other financing that require demonstrated site control.
City staff acknowledged risk questions, including whether the city would be exposed to builder’s‑risk liability while the city retains title during demolition and remediation. Staff said the lease requires the developer to provide the required insurance certificates and to satisfy insurance and indemnity obligations in the lease.
Timing and conditions Staff reported the demolition, excavation and remedial activities are anticipated to start within the next month or two and that the timing for final EPA closeout remains uncertain. The authority approved the option to proceed with the ground lease; staff said they will return to the authority with the final ground lease and development documents once remediation and grant conditions are complete.
Quote from the meeting General Capital representative: “We need site control; this is a tool to be able to apply for the tax credits because we do need site control.”
Outcome The authority approved the motion by voice vote. Members indicated the motion carried; no roll‑call tally was recorded in the transcript provided.
