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Council approves Hotel Northland sale release after closed‑session legal review; buyer promises renovation and public programming
Summary
After consulting with legal counsel in closed session, the Green Bay Common Council approved a deed‑in‑lieu release and assignment related to the Hotel Northland sale, conditioned on receipt of sale proceeds at closing. The buyer, Tertium Development, said it will keep the Hotel Northland name, remain in the Autograph Marriott family, renovate the property and program the adjacent lot for events.
The Green Bay Common Council approved on July 21 the city’s release and assignment steps tied to the sale of the Hotel Northland, following a closed‑session legal briefing and a public presentation by the buyer.
Council moved into closed session under Wisconsin Stat. §19.85(1)(g) to consult with legal counsel about litigation strategy and the city’s subordinate lien position. After reconvening, Blake Malika of Tertium Development described plans to keep the Hotel Northland name and its Autograph Marriott affiliation, invest in room and lobby renovations, open the basement bowling‑alley/bar to the public on select weekends, and pave and program the adjacent gravel lot for events such as live music, food trucks and Packer‑season tailgates.
City counsel explained that the city previously guaranteed a federal loan tied to the property and holds a subordinate position. The attorney said the city has a reserve account of $550,000 connected to that loan and is owed approximately $2,600,000 as a subordinate lender. The sale is proceeding as a deed in lieu of foreclosure; the primary lender and other liens put the city behind senior creditors. Counsel said Octagon Credit Partners, the primary lender, offered a proposed $1,000,000 payment from the sale proceeds to the city; the city would receive any payment only at closing via escrow.
Council members asked whether the city has binding guarantees to preserve hotel operations; counsel said there were no additional city guarantees beyond the seller’s commitments and the proposed sale terms. Council members who reviewed the material in closed session expressed appreciation for legal and administrative work that secured a payment rather than an unconditional lien release without funds.
The council approved the release/assignment and related resolutions on the condition that payment is received at closing. City staff and legal counsel will finalize documents tied to escrow and return to council with confirmation of closing and disposition of funds.
Tertium Development’s representative said the firm focuses on community‑oriented hotels in Midwest cities and that the Northland will be restored as an asset for downtown; details and a construction schedule were not specified and will be determined during the closing and permitting processes.
