Green Bay loan committee approves subordination to allow Salon 54 refinancing

The Community Development Block Grant Revolving Loan Committee on July 8 approved a request allowing the city to sign a subordination agreement so Nicolet National Bank can refinance the senior loan for Salon 54 LLC at 408 Dousman in downtown Green Bay.

City staff told the committee the city holds a $245,000 CDBG second mortgage on the property from a September 2025 loan to Salon 54 LLC. Staff recommended consenting to the bank'led refinancing after reviewing an updated appraisal that estimates a completed value of $1,520,000 and supporting underwriting from the bank and the U.S. Small Business Administration. "Based on the borrower's satisfactory payment and job-creation history with the city, observed construction progress, the updated appraisal, and the continued participation of Nicolet National Bank and the SBA, staff recommends that the loan committee authorize the city's consent to the proposed refinancing and subordination," a staff member said.

Tim Heinrich, a representative of Nicolet National Bank appearing online, said the new senior loan amount is scheduled to be about $1,237,600. Staff characterized the resulting combined loan-to-value ratio as roughly 97.5 percent under the proposed structure.

Rosemary Alcantara, owner of Salon 54 LLC, described the project's delay after her original general contractor stopped communicating in late 2025 and said the business rebid the work, hired a new general contractor, and resumed construction after permits were issued in May. "He kinda just stopped communicating around Christmas time, of 2025," Alcantara said of the original contractor. She told the committee that HVAC-permitting delays remain a near-term hurdle but that on-site work and an upstairs Airbnb that now has regular bookings have improved the project's revenue prospects.

Committee members asked about the original appraisal and SBA lien position; staff said the original completed appraisal was $1,160,000 and confirmed SBA 7(a) participation as part of the refinancing plan. A committee member moved to approve the city's consent to the subordination agreement; the motion was seconded and carried with no opposition.

The committee noted staff had observed measurable construction progress on a recent site visit and that the borrower has remained current on city loan payments. The motion authorizes staff to execute the city's consent to Nicolet National Bank's refinancing; the committee did not set additional conditions beyond the recommendation. Staff and the borrower said they expect construction completion in September or October, subject to permitting and contractor schedules.