A development plan in downtown's Park East area is no more. County is seeking new ideas.
Plans for an apartment and hotel development in downtown Milwaukee's Park East area have fallen through, with Milwaukee County again seeking proposals for the site.
Developer Cornelius McClendon in 2021 disclosed plans for development on a 2.1-acre vacant lot bordered by North Water Street, North Broadway, North Milwaukee Street and East Ogden Avenue.
McClendon planned to build a six-story, 122-unit apartment building, with around 20% to 25% of those apartments set aside at below-market rents for people earning no higher than half the local median income. He also planned a six-story hotel with around 160 rooms.
His firm, McClendon Capital Group LLC, signed a purchase option with Milwaukee County in July 2021. It was extended in July 2022 and again to January 2023.
Prior to January, McClendon discussed with county officials the delays connected with changes to his project plans, a request to change the proposed purchase price, and "some project funding delays and issues," according to a new report to the County Board.
McClendon and the county discussed a possible renewed option agreement.
However, county officials recently concluded that changes to the project plans, including the proposed purchase price, "have reached the level of substantial changes, and the parties agreed to allow the option agreement to expire without the final extension," said the report from Celia Benton, county economic development interim director.
As a result, Benton's department is creating a new request for proposals for the site. That process will include ordering a new assessment of the property value, with the RFP to be completed by July.
Benton's report is scheduled for discussion by the County Board's Committee on Economic and Community Development at its June 12 meeting. McClendon couldn't be immediately reached for comment.
The underused Park East Freeway stub was demolished in 2003 to create development sites on downtown's northern edge.
The county sold some parcels east of the Milwaukee River, and in 2015 gave all the Park East lots west of the river to the Milwaukee Bucks as part of the public-private financing plan for Fiserv Forum.
The Trade hotel, Fiserv Forum's parking structure, 550 Ultra Lofts apartments, the Milwaukee Bucks training facility and the Froedtert & Medical College of Wisconsin McKinley Health Center have since been developed west of the river.
Park East developments east of the river include Milwaukee School of Engineering's parking structure and soccer field and Avenir apartments.
Weidner Investment Services Inc., based in Kirkland, Washington, plans to develop two additions to the Avenir with 82 and 63 apartments. But that project remains on hold.
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Twitter and Facebook.
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This article originally appeared on Milwaukee Journal Sentinel: Development plan in downtown Milwaukee falls through. New ideas sought
