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Council approves release steps for Hotel Northland sale after closed-session review; prospective buyer outlines restoration plans
Summary
The council authorized steps connected to a proposed Hotel Northland sale (including release/assignment language and acceptance of sale proceeds) after moving into closed session for legal advice; the prospective buyer, Tertium Development co-founder Blake Malika, told the council he plans events, to reopen a Walnut Room restaurant and restore the hotel.
The Green Bay Common Council on July 21 approved council action to permit the release and assignment related to the Hotel Northland sale following a closed-session legal review and subsequent open-session vote. The agenda item covered a release from certain financial obligations under an amended and restated mortgage and related agreements, where the city held a subordinate claim with an outstanding balance recorded at approximately $2,600,000.
City legal counsel explained the sale is being pursued as a deed in lieu of foreclosure and that the city’s subordinate position in the loan priority means a foreclosure could leave the city with little or none of its loan funds recovered. Counsel told the council there is a reserve account of $550,000 controlled by the city and that the seller and lender offered a proposed payment of $1,000,000 from sale proceeds as part of the transaction.
The council voted 11–1 to move into closed session under Wisconsin statutes to consult with legal counsel about strategy related to pending or likely litigation and financial strategy. After reconvening in open session, the council opened the floor for the buyer to speak.
Blake Malika, cofounder of Tertium Development, described plans to maintain the Hotel Northland name and remain part of the Autograph Collection by Marriott while restoring the property. "We're very excited because we've got a lot of big plans for the hotel," Malika said. He described plans to pave and activate an adjacent gravel lot for events and tailgating, to serve dinner in the Walnut Room and to reopen portions of the basement bowling alley and bar to the public on select weekends.
Council members asked about guarantees for continued hotel operation; the city attorney said the protections would be what the seller provided in writing and that the city had no additional guarantees beyond the sale terms. The council was told the release of the city’s lien would occur only at closing and after receipt of payment through escrow.
After questions and a few clarifying comments about alternatives such as foreclosure or receivership, the council approved the action to move the sale-related items forward and to accept the procedural steps recommended by staff and counsel. Council members expressed gratitude to the current administration and legal staff for negotiating the payment amount and for securing protections in the proposed transaction.
The buyer’s presentation concluded the council’s public discussion on the matter; the council then moved on to remaining agenda items.
