Nov. 16, 2025 7p
(WGTD)---Slow progress in leasing market rate apartments and a change in lenders means that the developer of Belle City Square is temporarily unable to repay a $5 million loan to the City of Racine.
Belle City is the mixed-use redevelopment project on the site of the former Horlick Malted Milk complex on Northwestern Ave.
Milwaukee-based J. Jeffers & Co. started redeveloping the 18-acre site five years ago by rehabbing the existing, historic structures and building new apartments. The so-called affordable rate units have been selling, but it’s been slow-going on the market-rate side.
Repayment of a $5 million loan to the city is due this month.
Mayor Cory Mason says repayment is currently the subject of discussion. "I know that their lender has changed so the bank that has their primary loan has been sold to another bank. We're trying to work out with them what that means and what that looks like," Mason told WGTD last week. "Anytime a bank sells one bank to another you have to make sure that their primary lender is on board with the goals we have for the project," he said.
In addition to financing issues, there’s been turnover in property managers. City Development Director Walt Williams who himself lives in Belle City tells WGTD it seems the new property manager is making progress in turning things around.
In a statement to WGTD, developer Joshua Jeffers says his company remains committed to Belle City Square. He said the commercial side of the project is exceeding expectations with the signing of two new tenants.
At the moment, the most visible commercial tenant is The Inclusive Bean, a non-profit coffee shop that employs people with disabilities.
Jeffers went on to say that his company is in the process of successfully refinancing the properties’ mortgage debt which matures at the end of the year.
A groundbreaking ceremony held in 2023 for Belle City's phase #4 never materialized in the planned residential construction. Still on the drawing board is the rehabbed "Carriage Row" building and new construction called "The Summit."
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