Water Mark finally making progress

GREEN BAY - For Milwaukee area developer John Vetter, it's almost time to celebrate.

"Honestly, my excitement almost doubles on a weekly basis," Vetter said.

Why is he so excited? Because he has spent nearly a decade trying to re-develop the old Younkers building in downtown Green Bay. But the project has bogged down in delays.

Harry Maier watched the lack of progress from the front row. He's the chairman of the city's Redevelopment Authority.

"You have to recognize, Robert, the frustration of this project over the last four years has been something," Maier told FOX 11 On Special Assignment reporter Robert Hornacek. "Everywhere I went I always got a question, 'What's happening downtown?' And it was a tough one to answer because I didn't have the answer."

Now, the persistence is finally starting to pay off with what's now known as the Water Mark project , a six-story, mixed-use development.

• Click here to see a photo gallery of the project.

"I'm very proud of what we've done here because I frankly don't think anyone else would've. They would've given up a long time ago," Vetter said.

When he came to town in 2004, Vetter saw opportunities but was met with obstacles. Shortly after the city gave Vetter the go ahead, financing dried up. Vetter says even now, getting the money for a project like this is a challenge.

"It's kind of impossible on a national level to finance speculative real estate and that's what this is considered. This is considered speculative real estate. Those days pretty much are gone you can't really do that anymore unless you're independently wealthy or you have it 100% leased," Vetter said.

Despite the obstacles, the Water Mark project is moving finally moving forward.

"The fact that we were able to pull this off is a remarkable piece of business," Vetter said as he toured his signature project with FOX 11.

The ground level of the Water Mark features the Children's Museum and Hagemeister Park Restaurant along with some retail. The next three floors will be offices. The top two floors will be condos, 18 of them in all.

Of course, not everyone is happy with the project. Alderman Guy Zima is Vetter's chief critic.

"Preserving the ugly nature of the old Younkers building, I was really hoping for something a little more dynamic, something more beautiful, something you could really be proud of our downtown," Zima said.

One of Vetter's biggest supporters over the years, Mayor Jim Schmitt, is very proud of the project.

"Yeah, it's about time," Schmitt said. "But I know the finished product we're going to see there and it's going to be awesome."

Despite years of delays, Schmitt has stuck with his developer.

"You know, I am an optimist and I never thought it wasn't going to happen but boy we had some dark times with that project," Schmitt said.

While the Water Mark is well on its way, Harry Maier concedes the project has changed over the years.

"It's been scaled down. There's no doubt," Maier said.

The original plans called for a hotel, water park and condo project valued at $48.5 million. Now, it's closer to $22-million.

FOX 11 On Special Assignment asked Vetter to explain the difference.

"That's a little bit news to me," Vetter said. "I don't know that it was ever quite that high. I think there was talk you know, in the height of a heated market there's talk of doing things. What I like about this project: It's realistic.

"This is the right size. I think this is the right size for the market in Green Bay. Too often, and I think in the height of the market, everyone got a head of their skis. And I think all that talk at that value was probably not really substantiated by the market that existed here," Vetter said.

Zima has another view.

"John Vetter hasn't fulfilled a single promise he made," Zima said. The long-time alderman also questions the funding of the project, including $2 million in state tax credits and a $3.5 million loan from the city.

"The city is at risk," Zima contends. "It's the city's money that's in the Younkers building right now."

When asked if the project would happen without the tax credits and loan Vetter quickly replied, "Absolutely not."

"The city made a loan," Vetter added. "They get paid a nice interest rate. The city is making money on this deal. They didn't give the money. It's not a gift. It's not a subsidy. It's not a bailout."

The residential condos at the Water Mark will be available to the public starting on March 15.