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Brown Deer approves up to $3M note and loan agreement to advance proposed recreation center site
Summary
The Village of Brown Deer authorized up to $3,000,000 in short-term notes and approved a loan agreement with developer Cobalt Partners to support purchase and development of about 16 acres for a proposed recreation center; trustees approved both measures unanimously, while staff and developers emphasized a sizable funding gap and multi-year timetable.
The Village of Brown Deer Board of Trustees on Tuesday approved a resolution authorizing issuance of not-to-exceed $3,000,000 general obligation promissory notes and a related taxable note anticipation series and voted to approve a loan agreement with Cobalt Partners to support purchase and potential development of roughly 16 acres west of the Badger Meter property.
The measures, adopted on roll call, authorize staff and the village’s financing representatives to finalize pricing for the note on Dec. 15 and, if terms meet the resolution’s parameters, to close and make funds available by the end of December. Trustees approved the debt authorization and the loan agreement subject to track changes in the agreement and final pricing.
Village staff introduced the package as the financing mechanism for a possible indoor sports and recreation center the developer has proposed. Staff said the loan agreement would be collateralized by the property and that, if Cobalt Partners defaulted, the village would acquire the parcel. Staff also noted an alternative plan — a mixed-use development with housing and a retail corner — could be pursued if the sports facility proved infeasible.
Developers and consultants told trustees they see strong market demand. Scott of Cobalt Partners noted the work the village funded on a market study and pro forma and said the estimated regional economic impact of the proposal is in the “$25,000,000 to $28,000,000” range. Developers said facility construction estimates vary widely depending on the program and scale but cited a planning range of roughly $70 million to $110 million.
Board members and staff emphasized the funding gap: while operational projections are favorable, the up-front capital would likely require a layered financing plan including private investment, philanthropic sponsorships and possible public participation (such as TIF assistance if requested in a later development agreement). Staff recommended adding language in motions to reflect the track changes to the loan agreement and to incorporate the final pricing once available on Dec. 15.
Staff estimated the market rate on the note at roughly 4.55% based on current market conditions and said documents would include protective pricing parameters. Developers estimated it could take roughly a year to complete site and financing work, with construction earliest in spring 2027 and about 18 months of build time if all phases align.
Trustees voted to adopt resolution 25-18 (debt issuance) and to approve the Cobalt Partners loan agreement with the agreed track changes and pending final pricing. The approvals do not obligate the village to build a facility; they authorize debt issuance and a loan structure to support the developer’s purchase and early financing steps. Village staff said the full market study and pro forma remain in draft and would be published to the public in coming weeks.
The board’s action next requires final pricing and execution of the financing documents; staff said they will return final documents after the Dec. 15 pricing update.
