MILWAUKEE — The future of a 31-story apartment building in a prime downtown Milwaukee location is in doubt after construction was put on pause.
On Tuesday, the Department of City Development Commissioner Lafayette Crump told common council members that the developer is working through financial challenges to determine if they can complete the project.
A groundbreaking in June celebrated the private project. It was slated to bring a mass-timber apartment building, including nearly 400 units and retail space.
According to Crump, the Madison-based developer, Neutral, is navigating higher-than-expected costs related to materials and tariffs for some products. The Edison project is reportedly $25 million over budget.
Alderman Bob Bauman raised concerns surrounding financing and the developer’s ability to complete the project.
Watch: Some city leaders and residents question future of 31-story apartment building after construction pauses
"The mayor's expectation is that they're going to get this project done and that they're going to continue to communicate with us. We're not going to see an empty site for months and months and months. If it's determined that they cannot complete this project, then we're going to have to figure out something else at that site,” Crump stated.
“If it starts, I want it to be done,” resident Tammy Dentice told TMJ4.
Dentice has lived in the neighborhood for roughly seven years. She does not mind the development or construction, but she is frustrated that the work is on hold after years of talk.
“Why did you even start building it if you knew there was a question of funding?” Dentice wondered. “I don't really think it's going to be built."
Bauman challenged Crump as the city continues to consider Neutral over two other developers for another project involving the Marcus Center.
"Shutting down in three months after a groundbreaking? Not raising the funds that they claim to be raising? Having major contractors owed millions of dollars, that's not extraordinary? That's normal,” Bauman remarked.
"I think if you look over the course of construction projects across the city and across this country, no,” Crump replied.
The committee wants an update on Neutral’s Edison project in 30 days, which could determine whether it pushes to restart the request for proposal process for the Marcus Center site.
Dentice hopes the issue is resolved soon and the city is not left with a giant hole in the ground.
“Change your plans and then just do something different. Don't just let it sit there and waste,” Dentice said.
TMJ4 reached out to Neutral for comment, but did not receive a response.
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