Dallas-based Gatehouse Capital wanted the city to provide $18 million in tax incremental financing (TIF) to assist its $158 million Milwaukee Hotel Palomar and Residences development in the Park East corridor, according to documents obtained from the city in an open records request by BizTimes Milwaukee.
Earlier this month Gatehouse Capital cancelled the development and its chief executive officer, Marty Collins, said the firm could not obtain the financial assistance from the city that it needed for the project to be viable. He would not disclose how much financial assistance the firm was seeking. City officials would not disclose that information either, until complying with open records requests.
The city had agreed to provide $2 million in tax incremental financing for the project, but Gatehouse later sought more city assistance after the capital markets dried up in the financial industry crisis.
The 22-story development planned for the northwest corner of West Juneau Avenue and Old World Third Street was to include 63 luxury condominiums, a 175-room boutique hotel, a restaurant owned by Food Network Iron Chef Michael Symon, a nighclub, a spa and fitness center, retail space and a parking structure.
According to the documents obtained from the city, Gatehouse wanted $10 million in TIF funds for its development, $5 million in TIF funds for infrastructure improvements and $3 million in TIF funds for a public park, landscaping, lighting, signage and promotion for what it called the McKinley District, which includes the portion of the Park East corridor west of the Milwaukee River, the former Pabst brewery complex, the Bradley Center, the Manpower Inc. corporate headquarters and Schlitz Park.
As part of its TIF request, Gatehouse said it would use 600 union construction workers to build the development and employees in the hotel would also be union members, according to the city documents
Gatehouse also indicated that it planned to seek new market tax credits for the project.
