Sept. 13, 2026 1p; Edited at 8p
(WGTD)---The Racine City Council is expected to vote Tuesday to extend the terms of a delinquent $5 million city loan to the developers of Belle City Square, the multi-use development that sprung up from the vacant, historic buildings of the former Horlick Malted Milk complex on Northwestern Ave.
Milwaukee-based J. Jeffers & Co. started redeveloping the 18-acre site six years ago. An incentive package from the city included the $5 million loan which was to have been repaid at the end of last year.
But slow progress in leasing market rate apartments and a change in lenders meant that the developer was unable to repay the loan on time.
The proposal before the council is to extend the loan deadline to 2033 with interest accruing at a rate of 3.25%. The agreement includes a personal guarantee from the developer and required monthly payments, according to city documents. The agreement also requires payment of delinquent interest from an established escrow account.
The agreement was approved unanimously by the council's Finance and Personnel Committee last week following an hour-long closed-door meeting.
Alder Sandy Weidner, a frequent critic of city financial policies, attended the meeting even though she's not part of the committee. Weidner told WGTD she believes the council has little choice but to go along with the deal.
In addition to apartments, the developer has commercial and non-profit tenants, including the Inclusive Bean, Lee's Deli Market and the Racine County Eye.
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