The site of downtown Milwaukee’s stalled Edison luxury apartment tower could instead host apartments targeted to middle-income renters.
The Edison’s financially troubled developer, Madison-based Neutral, has been in discussions with potential partners considering the site – where construction stopped abruptly in September.
Workforce housing, with apartments targeted to people earning up to 100% of the Milwaukee area’s median income, is among the possibilities for that parcel, 1005 N. Edison St.
That’s according to remarks city Development Commissioner Lafayette Crump made before the Common Council’s Zoning, Neighborhoods and Development Committee at its April 14 meeting.
Neutral executives are having conversations, Crump said, and “are exploring everything possible.”
“We’d certainly love to see something move forward,” Crump told the committee.
Neutral CEO Nate Helbach and Chief Product Officer Daniel Glaessl didn’t immediately respond to the Milwaukee Journal Sentinel’s request for comment.
Crump said Neutral’s recent sale of its Madison apartment development generated cash to pay off an overdue construction loan owed to general contractor C.D. Smith Construction Inc.
Crump said that could improve the relationship between Neutral and Fond du Lac-based C.D. Smith, which also was the Edison’s general contractor.
C.D. Smith in March filed a foreclosure suit targeting the Edison site.
It says Neutral affiliates The Edison SPE and The Edison Project LLC owe $11.3 million in unpaid bills before taking into account interest, fees, court costs, “or any other related damages.” That suit is pending in Milwaukee County Circuit Court.
The Edison, a 31-story, 357-unit apartment building, is facing a $25 million funding gap, Crump said in October.
Neutral hasn’t shown it can raise enough money to complete the project, according to C.D. Smith’s lawsuit.
The firm in November dismantled and removed the site’s construction crane and other equipment.
Committee Chair Robert Bauman asked Crump whether the city should file a foreclosure suit tied to the Edison’s delinquent property tax bill.
That could allow the city, under state law, to take precedence in acquiring the site, he said.
Crump called it an “interesting thought.” Bauman, an attorney, noted such an action would likely be resolved by payment of the delinquent bill to prevent the city from foreclosing.
The Edison affiliates together have overdue property tax bills of $44,333 as of April 14, according to city records.
Neutral said in September it was pausing work on the project – calling it a temporary measure while looking at ways to reduce costs. Construction started in June.
That happened after the Neutral affiliates “ran out of capital” following cost overruns, C.D. Smith’s suit said.
The developer terminated loan agreements and discussed restructuring the project and/or selling it, according to the suit – which characterized the project as abandoned.
City seeks Marcus Center parking garage development plans
Meanwhile, the Department of City Development is seeking new development proposals for the city-owned Marcus Performing Arts Center parking structure site – after initially recommending in 2024 Neutral’s conceptual plan for the 2.5-acre parcel, 1001 N. Water St.
Crump told committee members department officials are continuing their discussions with developers, including firms behind two previously submitted proposals: New Land Enterprises LLC and a partnership between Richman Group and Northernstar Companies LLC.
The commercial real estate market conditions are challenging, Crump said, and the department is seeking clarity on what might be feasible for the large development site.
Crump also said there’s a sense of urgency – in part because the parking structure faces ongoing repair costs.
While the land is city-owned, the parking garage is owned by the nonprofit, Milwaukee County-supported Marcus Center.
Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, Bluesky, X and Facebook.
This article originally appeared on Milwaukee Journal Sentinel: Stalled Edison project site could instead host middle-tier apartments
Reporting by Tom Daykin, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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