GREEN BAY, Wis. (WBAY) - A judge has appointed a third-party to take over financial decision making for the Hotel Northland project in downtown Green Bay.
On Tuesday, the judge appointed Oshkosh-based attorney Paul Swanson as receiver for the Hotel Northland, meaning he will take over the financial decision-making for the hotel, which has been delayed by money problems. That includes issues like construction liens and bank accounts associated with the project.
Hotel Northland will be back in court on October 10 to deal with a breach of contract lawsuit.
Green Bay's City Council approved receivership for the project with two goals in mind.
One goal is to pay millions of dollars owed to vendors and subcontractors for work completed on the $44 million project. Once the debt is paid off, the receiver would put the hotel up for sale and decide a new owner.
In August, Action 2 News reported that lender Octagon Finance was willing to put forward money to finish the project and pay the contractors.
The second goal is to get the hotel open by July 2018.
The project has been delayed multiple times due to a fight over ownership of the hotel, the inability to secure a senior lender, and a lawsuit over unpaid work.
The Development Director for Octagon Finance, Kevin Vonck, tells Action 2 News the next steps for the project include finalizing their recommendation to the receiver as to how to move forward so work can start again before winter.
The proposal will include determining how much the subcontractors are owed, estimating how much work needs to be done on the project and negotiating new contracts with the subcontractors to complete the work.
Work on the hotel restoration was halted several months ago because KPH Construction had not secured financing to continue the project.
KPH Construction has said that work on the project is 75 percent complete.