An $18 million apartment complex in the Machinery Row project may take a step forward if the Racine Common Council approves a pre-development agreement between the city, who owns the property, and the developer.
The city is considering entering into a pre-development with General Capital Group LLP for the former Case Plow Works buildings located 922 6th St. and 615 Marquette St.
General Capital Group of Fox Point, WI, proposed a $18.4 million project in November that would include an historic renovation to transform the former Case Plow Works building into 82 loft apartments.
The document outlines the intent of the city to sell the properties to General Capital Group for $750,000. It allows the city to be reimbursed for some redevelopment expenses and grants officials with General Capital access to the building to conduct studies, testing and evaluation of the property.
If the agreement is approved, General Capital Group have until Dec. 31, 2018 to enter into a formal development agreement with the city.
The matter was referred to the Finance and Personnel Committee, but would still need final approvals from the Common Council.
In a separate issue, the property adjacent to the Case Plow Works is mentioned as a single discussion item on a special Common Council meeting on Feb. 8.
The 820 and 900 Water Street have started to collapse. Rodney Blackwell owns both buildings, which is a sensitive topic for the city because FDP MR LLC, Blackwell’s company, defaulted on a bridge loan the city gave to him.
The topic is described as a “Communication from the Director of City Development requesting to present the Common Council proposal for the future of the Machinery Row development.”
That portion of the discussion is in open session, but the Common Council will then go into closed session on the topic.
In December, Blackwell received a notice of default on the development agreement. He still has a right to cure the default from the city, but he has until March 31 to bring in another developer with financing. If that doesn’t happen, the city will own the property.