Hotel proposed by the Haywood Group for the Milwaukee Mall (former Sears Department Store) property. First proposed in 2019.
The project calls for the three-story, 211,298-square-foot building to hold an 82-room hotel on its upper floors. An addition would be built to house a conference center along W. North Ave. Multiple tenants were considered for the first floor and future buildings were contemplated as part of a larger One MKE Plaza project.
In 2019, the city created a tax incremental financing (TIF) district to provide Haywood with $4 million to complete pre-development work on what was expected to be a $36 million project. The loan is secured by a mortgage on the property. If things went according to plan, the loan and a second $5 million loan would be repaid by 2047 with increased property tax revenue on the development.
But, as of early 2023, only pre-development worked has occurred. Repayment on the loan, expected to begin in 2021, was extended that year to 2022 by the Redevelopment Authority of the City of Milwaukee. It was extended again in 2022 to 2023. The city could eventually foreclosure for nonpayment if the development does not move forward.
The second loan is not at risk and is only to be provided if other financing sources are secured.
Approximately $1.7 million of the pre-development loan was used to repay a Milwaukee Economic Development Corporation loan used for the building’s acquisition, approximately $1 million went to contractor JCP Construction for demolition and abatement, $380,000 went for architectural services and historic preservation tax credit preparation, $290,000 for operating costs including electricity and $200,000 for property taxes. Engberg Anderson Architects is leading the project’s design.
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Content referencing IKON Hotel
After IKON Hotel Issues, Council Moves To Assert More Control of TIF Districts
City has foregone $540,000 in interest payments at discretion of administration.
Oct 6th, 2023 by Jeramey Jannene
IKON Hotel Dropped In Favor of ‘Sears Market’ Concept
New proposal to redevelop former Sears department store at Fond du Lac and North.
Aug 17th, 2023 by Jeramey Jannene
IKON Hotel Deal At Risk of Default
Haywood Group could default on $4 million city loan. City could end up owning empty mall.
Jul 26th, 2022 by Jeramey Jannene
IKON Hotel Gets Loan Extension
No interest period on city loan being extended one year.
Aug 19th, 2021 by Jeramey Jannene
Developer Assembling Land for Ikon Hotel
Kalan Haywood confirms hotel won't be open by DNC.
Oct 1st, 2019 by Jeramey Jannene
Council Approves Ikon Hotel Deal Despite Objections
Plus: Council unanimously endorses host of other development projects.
Sep 24th, 2019 by Jeramey Jannene
Committee Okays $5 Million More for Ikon Hotel
But only after a debate as to whether a project in the city's black community is "risky."
Sep 17th, 2019 by Jeramey Jannene
Council Okays Subsidy for One MKE Plaza
Comptroller calls the deal a "significant risk" but council votes 12-3 in favor.
May 7th, 2019 by Jeramey Jannene
Committee Okays City Funds for Ikon Hotel
One MKE Plaza proposal for old Sears site on North Ave. gets first city approval.
Apr 30th, 2019 by Jeramey Jannene
7 Takeaways From Ikon Hotel Deal
Will city build a pedestrian bridge? A beer bet on what? How many stoplights from Downtown?
Mar 28th, 2019 by Jeramey Jannene
Old Sears Building to Become New Hotel
80-room Ikon Hotel and 24,600-square-foot conference center planned for 21st and North.
Mar 27th, 2019 by Jeramey Jannene
