GREEN BAY, WI (WTAQ) - The Green Bay city council has approved an $8 million deal with a hotel management firm to sell and renovate the city owned Clarion Hotel.
The vote was 8-4 for American Hospitality Management to take ownership of the riverfront hotel that they have been operating for the past year-and-a-half.
The city purchased the hotel to secure around $1.3 million in property and air rights for the connecting and expanding KI Convention Center.
The deal with AHM was put on hold in June after Edgewater Resources, a Michigan-based firm, came in at the 11th hour wanting to bid on the project that was never open to other developers.
The city council delayed the AHM deal to hear them out.
Edgewater proposed to demolish the Clarion and build a new $33.5 million new 16-story, 4-star hotel on the site. The hotel would include top floor condominiums, a restaurant and bar, rooftop viewing deck, as well as an all day spa.
However, the proposal clashed with the city’s long-time plans to keep the Clarion as a mid-tier hotel and potentially jeopardize a $35 million renovation of the historic Hotel Northland.
The Northland would be a 5-star hotel.
Frantz-Hobart CEO Mike Frantz, the developer of the Northland, said Tuesday night saying that no matter what, they would move forward with their plans.
But the city council also had other concerns with Edgewater’s timing, financing, and scope of the project, and decided that it wouldn’t be the right fit for the downtown.
Edgewater says they would be interested in working on other projects in Green Bay down the road.
Sources say the Clarion would likely become a Hampton.