What to know about Milwaukee's proposed 2021 budget

Tom Daykin | Milwaukee Journal Sentinel

Rick Barrett says he's making progress on the delayed Couture apartment high-rise, but County Board members are discussing the possibility of finding another developer for the site.

The board might be powerless to act without the approval of County Executive Chris Abele, who continues to back the Couture.

Still, members of the board's Economic and Community Development Committee entered closed session Monday to talk about it.

That came after Barrett gave committee members an update on his work to complete the financing package for the Couture.

His firm, Barrett Lo Visionary Development LLC, plans to build the 44-story, 322-unit Couture overlooking downtown's lakefront at 909 E. Michigan St.

Barrett Lo in 2016 bought the site, a former county bus facility, at a deep discount to help make the project feasible.

That could leave the county on the hook to pay $6.7 million to the Federal Transit Administration. That's because the agency provided a 1988 grant to finance the bus facility, which Barrett Lo has demolished.

The Couture would feature a public transit plaza that would complete the lakefront loop for The Hop streetcar.

That Federal Transit Administration plans to waive the $6.7 million debt if the transit plaza opens by the end of 2020.

But that deadline won't be met because construction hasn't yet started on the Couture. Local officials have been talking with the FTA about extending the deadline.

Meanwhile, Barrett Lo about three weeks ago hired Baird & Co. to help it find more equity investors.

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The equity investments would account for around 17% of the Couture's financing package, Chief Financial Officer Joel Aizen told committee members.

The Couture has a preliminary approval for its main financing: a loan guaranteed by the U.S. Department of Housing and Urban Development.

That would amount to 60% of the package, Aizen said. Another private loan accounts for 8% and city financing for the transit plaza and other public improvements provides 15%, he said.

Barrett told committee members that Baird has been doing good work in finding potential investors.

"We're going to get this project done," he said.

But Supervisor Anthony Staskunas, a committee member, said he has doubts about Barrett.

Staskunas said the committee would go into a closed session to discuss the situation —including whether steps should be, or could be, taken to "move on" from Barrett.

"We're going to find out what our legal options are," he said.

Barrett told Staskunas that he managed to develop downtown's Moderne housing high-rise amid a deep recession.

And he again stressed the difficulty of developing a high-rise.

"This job is really, really hard," Barrett said.

The County Board's options could be limited.

The 2015 state budget, passed by Republicans who controlled the Legislature and governor's office, granted Abele power to sell non-parks land without County Board approval.

Under a 2016 development agreement, a Barrett Lo affiliate, Couture LLC, was given a deadline to begin construction — which has long since passed.

That contract allows the county to force Barrett Lo to return the development site in exchange for $425,000. That's 85% of the purchase price.

That contract was signed by Abele, and did not include approvals from any County Board members.

Aaron Hertzberg, Abele's economic development director, told committee members the Abele administration remains optimistic that Barrett will develop the Couture.

Abele is "the controlling entity" over the former Couture site, said Supervisor John Weishan.

Weishan, a committee member, declined to say what was discussed during the closed session. He did say his colleagues hope the Couture is developed.

"We all want to see the project succeed," he said.