HUD Approves $4.7 Million Loan Guarantee to Green Bay

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. April 21, 2015

CHICAGO, IL. - April 21, 2015. The Department of Housing and Urban Development announced that it is approving a $4.7 million loan guarantee to the City of Green Bay. The City of Green Bay will use the Section 108 loan proceeds to facilitate the renovation of the currently vacant historic Hotel Northland into a boutique hotel. The economic development project will stimulate the local economy and create approximately 166 new full-time equivalent jobs. This Section 108 loan guarantee component of the Community Development Block Grant (CDBG) program is the first such approval in Wisconsin in over 10 years.

HUD's Section 108 Loan Guarantee Assistance Program enables local governments to borrow money at reduced interest rates to promote economic development, stimulate job growth and improve public facilities. The Section 108 loan guarantee program allows local governments to transform a small portion of their CDBG funds into federally guaranteed loans large enough to pursue physical and economic revitalization projects capable of renewing entire neighborhoods. Such public investment is often necessary to inspire private contributions, to provide seed money or simply to boost confidence private firms and individuals may need to invest in distressed areas.

“HUD's Loan Guarantee Program can be a powerful public investment tool to drive economic development in underserved areas,” said Antonio R. Riley, HUD Midwest Regional Administrator. “It will be a boost to Green Bay's revitalization efforts and will provide employment opportunities for lower income residents who need them most.”

"We are thrilled to see the iconic Hotel Northland restored to its original beauty," said Green Bay Mayor Jim Schmitt. "In recent years, Green Bay has seen a complete transformation of our downtown and, thanks to HUDs participation with the Section 108 Loan Guarantee, I believe the Hotel Northland will be the next project to further enhance the vibrancy of our community."

Originally built in 1924, Hotel Northland is already designated as historic on the National Registry of Historic Places. The property is in the heart of downtown Green Bay, a priority for the community. The Section 108 Loan will support this major development with funds to renovate and rehabilitate the abandoned building, serving as a catalyst in an urban area designated as “highly distressed” by the federal government. When complete, the property will include 160 guest rooms, food and beverage outlets, 10,450 square feet of meeting and banquet space, as well as a spa and fitness facilities.

About U.S. Department of Housing & Urban Development

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter, Facebook, Instagram, or sign up for news alerts on HUD's Email List.

Media Contact:
Gina Rodriguez, MBA
Public Affairs
U.S. Department of Housing & Urban Development-RV
312-913-8332
[email protected]