MILWAUKEE | Catalyst | 31 fl | Canceled

[UWMilwaukeeJay]

Milwaukee West downtown. Reproposed parcel where a parking lot exists.

http://graphics.jsonline.com/graphics/bym/img/oct07/ghazi2_103107_big.jpg

http://graphics.jsonline.com/graphics/bym/img/oct07/complex_103107_big.jpg


PREVIOUS design:
http://www.biztimes.com/nf/_assets/images/1/157-ghazi.jpg
http://i9.photobucket.com/albums/a92/icemone414/ghazinew.jpg
http://www.biztimes.com/nf/uploads/Image/lowerlevel.jpg


City O.K.'s 31-Story Hotel Tower
Gary Reistad
MILWAUKEE - A city agency gave a developer the green light Thursday to proceed with plans for a 31-story hotel and condo at 4th and Wisconsin. The downtown project could also include restaurants such as Hard Rock Café, ESPN Zone and House of Blues.

The tower would be built on what is now a city-owned parking lot at the southwest corner of 4th and Wisconsin. That's on the west end of The Shops of Grand Avenue mall, and just south of the Midwest Airlines Center

The tower would include a 175-room hotel, 200 condos and 100,000 square feet of retail, entertainment and office space.

At VISIT Milwaukee, the tourism bureau, president Doug Neilson said the restaurants would give a much-needed boost to the convention center area.

“Right where the meetings are taking place, there’s a real lack of energy and excitement,” he said.

Milwaukee's Redevelopment Authority gave the project a green light Thursday, but it still needs to be approved by the mayor and the Common Council.

Developer Afshin Ghazi of North Carolina can now start courting tenants for the $120 million project.

Ghazi conceded this idea is not a sure thing. "Timing is everything in real estate," said Ghazi. "We’ll find out if my timing is right, or not, soon enough."

If the tower makes it, Neilson has high hopes for the high rise. "You’ve got to create more reasons to come downtown," he said. "That’s what this does," he said.

Ghazi would have to pay the high price to clean up some environment problems on the lot. For that reason, the city plans on selling the property for just $1. The Redevelopment Authority said it is too early in the planning phase to discuss tax breaks.

Two other hotel projects proposed at the same site stopped, before the first shovel went in the ground, for financial reasons.

Ghazi hopes to have the tower completed in 2011.

[MasonsInquiries]

nice-lookin' tower i must say. :okay:

[brewcityfan]

The Common Council and Mayor have to approve of it still. But it shouldn't be a problem unless Water St. resturaunts and Marcus enter into the fray concerning the proposed hotel, ESPN Zone, HRC, and HoB planned there.

Exciting project. Can't wait to see the cranes!

[UWMilwaukeeJay]

How does Ghazi have connections like this to build in Milwaukee? Did he just see it as an opportunity?

[brewcityfan]

From what I know it's probably just a big opportunity for him to expand outside of Charlotte. He apparently has a lot of great connections with companies since he already named basically everything that's going into the complex with one press release! Compared with other projects like LPT that's a miracle - LPT was proposed a year or so ago and as of now we only got one confirmed tenant - US Bank expanding. Westin is up in the air, as is another tenant.

I think with these facts out there the city should have no problem approving of this.

[brewcityfan]

From Friday's Milwaukee Business Journal:
Aldermen should support Ghazi deal
The Business Journal of Milwaukee - March 16, 2007
There can be little argument that the parking lot on West Wisconsin Avenue near The Shops of Grand Avenue is the most underutilized property in downtown Milwaukee.

It is hard to believe that 2 acres of concrete is all that sits on the prime site, located near the Midwest Airlines Center and next to the Hilton Milwaukee City Center hotel. That is why Milwaukee aldermen need to support a proposal to sell the city-owned site to a North Carolina firm that has plans for a $120 million project that would include a hotel, 100,000 square feet of retail space and condominiums.

Due to environmental contamination on the former gasoline station site that has killed two previous deals, the Redevelopment Authority is recommending the property be sold for $1 to The Ghazi Co. The price tag is similar to what aldermen approved several years ago for a deal that ultimately fell through.

Ghazi's marketing plan for the site calls for leasing space to high-profile national restaurant and entertainment companies, such as Hard Rock Cafe and ESPN Zone, welcome additions to the downtown retail offerings.

The project could be just what the west side of downtown needs to continue its resurgence.

[NorthernIL Mike]

Nice looking building. The convention center needs more hotels in the area.

[i_am_hydrogen]

Finally. Great news, especially since this will replace a parking lot. What's the official name of this project?

[DooMer_MP3]

Well, the title is misleading. The Ghazi project still has a couple of major hurdles to overcome in getting past the Mayor/Common Council. I didn't think it would be an issue, but his comments on the hotel situation are less than thrilling. And then you've got local business owners who will nearly collapse at the thought of a HOB or ESPN Zone etc.

[brewcityfan]

Well, the title is misleading. The Ghazi project still has a couple of major hurdles to overcome in getting past the Mayor. I didn't think it would be an issue, but his comments on the hotel situation are less than thrilling. And then you've got local business owners who will nearly collapse at the thought of a HOB or ESPN Zone etc.

As I stated before, if the Water St. businesses and Rave HATED PabstCity, they're only going to hate this one as well. But, Ghazi doesn't have plans to ask for a TIF from the city - hell it was offering to pay 3.3 million for the land they want, and the city said it'd be fine for a sale of ONE DOLLAR. So, there's 3.3 million the city gave them right there.

[i_am_hydrogen]

So what was actually approved: The sale of the parcel or the project itself? In re-reading this thread more carefully, I'm inclined to assume the former.

[Markitect]

Finally. Great news, especially since this will replace a parking lot. What's the official name of this project?

This proposal has not had an official name announced yet.

Nor has this proposal actually been approved yet.

What's going on right now is the approval process for granting a purchase option for the land to the developer (and even that hasn't yet made its way to the Common Council yet; it will later this month at the earliest). That is something completely different that approving the proposal for construction.

The designs have not been finalized yet. Deadlines to submit preliminary and final designs have been made as part of the purchase option agreement.

Financing has not been completely worked out yet. Also, using TIF has not been ruled out either, so that would be something that has to be worked out if TIF is requested.

Tenants have not made commitments yet. Names have been dropped, discussions have taken place, but nothing official yet.

Lots to be done before it gets a definite green light.

[MilwaukeeD]

As I stated before, if the Water St. businesses and Rave HATED PabstCity, they're only going to hate this one as well. But, Ghazi doesn't have plans to ask for a TIF from the city - hell it was offering to pay 3.3 million for the land they want, and the city said it'd be fine for a sale of ONE DOLLAR. So, there's 3.3 million the city gave them right there.

I don't think that the city was like "Oh, please don't pay us $3 million for the site, a dollar will do just fine". There are several issues at that site that have been noted in the past, such as some environmental concerns, etc.

As far as the tenant mix, the House of Blues, Hard Rock Cafe, etc. were just given as examples of the type of tenant they may be looking for. I highly doubt either of those will end up in this project. Both of those chains are a little washed up in my opinion. I expect some of the newer chains of that sort to actually come to Milwaukee.

[brewcityfan]

I don't think that the city was like "Oh, please don't pay us $3 million for the site, a dollar will do just fine". There are several issues at that site that have been noted in the past, such as some environmental concerns, etc.

As far as the tenant mix, the House of Blues, Hard Rock Cafe, etc. were just given as examples of the type of tenant they may be looking for. I highly doubt either of those will end up in this project. Both of those chains are a little washed up in my opinion. I expect some of the newer chains of that sort to actually come to Milwaukee.

My point was - Ghazi didn't complain at all about price, the city was the one who decided to lower it to $1. Ghazi was willing to pay a few million for the property, knowing its environmental conditions. So, while its not a formal official anything - its still a big incentive by the city without doing any proposed TIFs/tax breaks/etc.

And from what I took in the Business Journal report, HRC, HoB, and ESPN Zone looked as definite venues for the site if approved by the city. I'm also not at all surprised that these names pop up either. HoB we all know for sure was interested in Milwaukee since they were a confirmed tenant at the failed PabstCity project. HRC and ESPN Zone are both highly recognized entertainment/food venues that have locations in many places, including spots with populations way lower than Milwaukee's. It would be about time Milwaukee gets the same treatment as many others, large and small, across the nation and world.

[Markitect]

And from what I took in the Business Journal report, HRC, HoB, and ESPN Zone looked as definite venues for the site if approved by the city.

You have misunderstood.

They are not a list of anything definite for the Milwaukee project. Rather, they are a list of examples of the type of high-profile entertainment/restaurant places Ghazi intends to seek out for the project. He has had experience with some of them before with some of this other projects elsewhere, and has talked with some of them about his Milwaukee project, others he has not.

So, at this point in time, it is premature to say that any of those places are definitively going to be a part of this project. That's still being worked out.

[brewcityfan]

Well that makes the whole project a lot more pessimistic than what the papers and media throw out. Alright, so I simply misunderstood the comments, but there aren't that many high-profile national entertainment venues in this country. HoB, HRC, ESPN Zone are three of possibly 10 or 12 big named venues I can call a "high profile national entertainment venue".

The possibility of these being named to the project are a lot higher than what apparently is being shown. I don't think the Business Journal, the Milwaukee Journal Sentinel, and the Small Business Times would just pump up the entire populus over complete nothingness.

[MilwaukeeD]

Well that makes the whole project a lot more pessimistic than what the papers and media throw out. Alright, so I simply misunderstood the comments, but there aren't that many high-profile national entertainment venues in this country. HoB, HRC, ESPN Zone are three of possibly 10 or 12 big named venues I can call a "high profile national entertainment venue".

The possibility of these being named to the project are a lot higher than what apparently is being shown. I don't think the Business Journal, the Milwaukee Journal Sentinel, and the Small Business Times would just pump up the entire populus over complete nothingness.

Then you are wrong. They are newspapers. What would be more controversial in Milwaukee than to throw out the HoB name? What do newspapers want to create? Controversy.

And who said the developer was willing to pay $3 million? No developer would willingly pay that.

Don't get me wrong, this will still be a great project with great tenants that Milwaukee has never seen. But lots of cities have a Hard Rock. Milwaukee deserves tenants that can't be found anywhere else so that people come HERE to visit them.

[brewcityfan]

Then you are wrong. They are newspapers. What would be more controversial in Milwaukee than to throw out the HoB name? What do newspapers want to create? Controversy.

And who said the developer was willing to pay $3 million? No developer would willingly pay that.

Don't get me wrong, this will still be a great project with great tenants that Milwaukee has never seen. But lots of cities have a Hard Rock. Milwaukee deserves tenants that can't be found anywhere else so that people come HERE to visit them.

From the Milwaukee Business Journal:
Ghazi offered to buy the property for $3.5 million. However, the Milwaukee Redevelopment Authority is recommending the city sell the land for $1 because of environmental contamination at the site, which at one time was a gasoline station

For this instance I don't feel this stirs anything controversial for the papers to feed off of. The only opponents to HoB at PabstCity were the Rave and Water St. - their lobbying efforts as well as their gaining support of Citizens for Responsible Govt. hailed PabstCity's demise. There are plenty of other topics out there that could actually sway peoples' feelings a lot more than letting us know resturaunt venues for a project.

I think the overall point that everybody is trying to relay to Milwaukeeians is that HRC, ESPN Zone, and HoB are indeed national venues, they're all not in Milwaukee, and they're all very popular entertainment venues. I mean, if Milwaukee can't land a HoB, HRC, or ESPN Zone due to "controversy" what other venue could?

[exit_320]

Is Planet Hollywood still around? I would love to see that come to Milwaukee! :lol:

[brewcityfan]

Yeah unfortunately I believe Planet Hollywood went defunct a few years back. That truly would have been an interesting venue downtown!

[UWMilwaukeeJay]

I like hard rock personally. I just love wearin' the T-shirts! ^^ but you're right, it is washed up.

[UWMilwaukeeJay]

Business leaders support keeping midwest airlines in the city; yet they fail to help support our downtown with development like this. I hate to bring politics in this discussion, but do you agree or disagree that big milwaukee leaders should step in. Then again, this project is very independent. Maybe I just really want a skyscraper bad and while doing so talk irrationally.

[brewcityfan]

Business leaders support keeping midwest airlines in the city; yet they fail to help support our downtown with development like this. I hate to bring politics in this discussion, but do you agree or disagree that big milwaukee leaders should step in. Then again, this project is very independent. Maybe I just really want a skyscraper bad and while doing so talk irrationally.

Well Jay you hit it right on the head. I don't think this is new material for any Milwaukee poster to read - Milwaukee's leaders in both the county and city levels are very slow and lethargic to move forward and to come to realizations about big projects not just in downtown, but also some instances countywide.

There is much bickering and much hassle over things that are new, trendy, and projects that would bring Milwaukee into possible limelight down the road. Council members and County supervisors are swayed by the smallest opposition, fearing for their jobs even though the majority sends the project their best wishes.

From what past projects have shown, and from some posts by members here on SSC, there is still constant questions concerning many issues that shouldn't be happening for another few years down the road. Subjects like our condo boom, the hotel boom this past year, various entertainment options swaying outside Water St. creating some hostilities. What the leaders fail to see is the constant flow of Illinois residents into SE Wisconsin, primarily to downtown Milwaukee. They buy our condos, they party at our festivals, they go to our plays, they patronize our venues. It has increased and will continue to increase every year from probably the early to mid 90s onward. There shouldn't be a fear of lack of interest in venues on Water St due to some outside the strip - there's more than enough people to fill them all. There shouldn't be questioning about condos or hotels being built. The condos are still being bought at ever-increasing prices, and hotels will be bustling with new attractions to the city and always-improving festivities during the summer months.

These beliefs have been sticking, no matter what the circumstance, and it will continue to be the status-quo until a newer generation takes the reigns of both city and county government. A generation that will look beyond the limited box and see a bigger picture - that will take other cities' inititatives and projects and integrate them into our own future. And a generation that will hopefully do something to control taxes in the CBD to help lure more corporations to locate offices here.

[MilwaukeeD]

Well, in the case of the Ghazi project, the Barrett administration actively pursued Ghazi to submit a proposal for the site. Ghazi didn't just randomly show up. I wouldn't say that the leadership from our politicians is weak on this at all.

[i_am_hydrogen]

Yeah unfortunately I believe Planet Hollywood went defunct a few years back. That truly would have been an interesting venue downtown!

Is that sarcasm?

[brewcityfan]

Is that sarcasm?

Take it as you wish my friend!

I think exit was trying just to name another popular national entertainment venue - there really isn't that many to list. So hey, PH had to come up on this thread at least once!!! :lol:

[UWMilwaukeeJay]

Well, in the case of the Ghazi project, the Barrett administration actively pursued Ghazi to submit a proposal for the site. Ghazi didn't just randomly show up. I wouldn't say that the leadership from our politicians is weak on this at all.

Not only political leaders, business leaders can join too.

[exit_320]

Is that sarcasm?

i was being sarcastic.. although i do miss planet hollywood

[MilwaukeeBS]

How about a Big Boy?

[exit_320]

How about a Big Boy?

ohhh fantastic idea!

[brewcityfan]

lmfao jeez let's just settle for a Sonic and we'll all be pleased!

[MilwaukeeD]

http://www.biztimes.com/blogs/milwaukee-biz-blog/2007/3/22/ghazi-kills-tenant-rumors-for-downtown-project

Ghazi kills tenant rumors for downtown project

By Andrew Weiland

Contrary to numerous recent media reports, The Ghazi Co. is not planning to bring a House of Blues, Hard Rock Café or an ESPNZone to its proposed downtown Milwaukee development.

Afshin Ghazi, president of the Charlotte, N.C.-based company, recently stomped on those reports while testifying before the city's Zoning, Neighborhoods and Development Committee.

The Ghazi Co. plans to build a $120 million complex on a two-acre, city-owned parking lot southwest of North Fourth Street and Wisconsin Avenue. The development would include 200 condominiums, a 175-room boutique hotel and 100,000 square feet of entertainment, restaurant and retail space.

The Common Council on Thursday granted an option on the site to Ghazi, so the company can further pursue the project and work to obtain tenants and financing for the development.

The entertainment and retail portion of the development is expected to provide a boost for the Midwest Airlines Center and the Shops of Grand Avenue, both of which are located across the street from the site.
However, Ghazi told the city committee that some recent media reports about the prospective retail tenants were incorrect.

"You have a very anxious media here in town," Ghazi said. "I had an interview with one of your local television stations. They asked me, 'What tenants have you spoken to?' I didn't tell them that I had spoken to anybody. I told them, 'I've spoken to only the core group of tenants we have in Charlotte in asking them in passing if they would like to go see Milwaukee or not. Those tenants include tenants like (Charlotte-based) Bar Management Group, which is a big company located in 50 markets around the country. I've passed it along to Fox Sports Grill, and that's about it. And lo and behold, I watch the news that night, and they said, 'Coming soon: House of Blues, Hard Rock Café, ESPNZone.'

"ESPNZone isn't doing deals, as far as I know. House of Blues was just bought out (by Beverly Hills, Calif.-based Live Nation Inc.) and I don't think they're doing deals. And Hard Rock Café is, to me, a worn-out concept. I'm not sure I'd even pursue them, even if I had the opportunity. So I have not talked to any of those tenants."
The rumors may have been fueled by stories about the project in The Business Journal Serving Greater Milwaukee, Ghazi said.

"I get regular calls (from media) out of cities for any project we are working on," he said. "The Business Journal in Milwaukee has called me numerous times and because we haven't had control of the property, I have declined to comment every time. We have not said anything to The Business Journal, other than we are contemplating coming (to Milwaukee). And they, I think because of our project in Charlotte, have jumped to conclusions about what the project may be or is trying to raise controversy or anything else."

Familiar concerns

The House of Blues rumors raised some concerns in the community. House of Blues was perhaps the most controversial tenant of the proposed PabstCity development that was rejected by the Common Council in 2005. Milwaukee aldermen killed that project, which would have transformed the former Pabst brewery into an entertainment district with stores, restaurants, residences and office space, by rejecting $41 million in city assistance, most in the form of tax incremental financing (TIF).

Critics of the PabstCity plan said the city should not provide a subsidy for restaurants and entertainment venues competing with existing establishments. Some of the loudest critics were the owners of The Rave and Shank Hall, who feared that the House of Blues at PabstCity would have hurt their businesses.
Talk of the House of Blues in the Ghazi project rekindled some of those fears.

"Some folks in town have already pressed the panic button because the horrid word, 'House of Blues,' has been mentioned in newspaper articles in connection with this development," said Alderman Bob Bauman, who represents the downtown area.

Public benefits

The Ghazi project also would be subsidized by the city. The city plans to sell the property to The Ghazi Co. for $1, instead of the original $3.46 million asking price. City officials say the subsidy is appropriate because of the benefits of Ghazi's development and because contamination must be removed from the site. In addition, a We Energies steam line must be relocated from the site.

Also, Ghazi's project would provide several public improvements, including a public plaza, streetscaping and a new transit shelter.

Ghazi is not seeking TIF for the project, but may do so later.

At a recent Redevelopment Authority hearing, Ghazi talked about the types of tenants that actually might occupy the entertainment and retail space in his development. He mentioned Fox Sports Grill, a "boutique movie theater" and a bowling alley. The bowling alley would not be the typical Milwaukee bowling alley, according to Ghazi, who described the concept as "martini bar meets bowling alley."

Westlake Village, Calif.-based Fox Sports Grill is a chain of sports-themed restaurants. Fox Sports Grill is expected to be a tenant in Ghazi's EpiCentre development under construction in downtown Charlotte. EpiCentre will also have condos, a hotel, a bowling alley and a movie theater.

Ghazi told the Zoning, Neighborhoods and Development Committee that the hotel in his Milwaukee development would be a limited service hotel.

"There are a ton of flags out there flying," he said. "Like the Hyatt Place, W Aloft, Hilton Conrad and several others that are out there floating around that haven't landed (in Milwaukee). That's a piece of the market where I think the next generation of hotels and business travelers and others are going to be going to. I think we've got the perfect site for one of them. I might not get the first one but, I don't want to guarantee anything, but I feel very confident we are going to get one of them."

Ghazi said the proposed development does not have an office component.

"I wish you had a stronger office market, because I'd be adding an office component to this," he said. "But the office market is very weak here, compared to what our risk tolerance is, so we don't have an office component to this project right now."

To view Ghazi's testimony before the city's Zoning, Neighborhoods and Development Committee, visit http://helix.milwaukee.gov/ramgen/ctyclkvi/tv25-home-pg/zd/znd032007.rm?usehostname.

[brewcityfan]

Some good points still came out of that discussion. At least he's focused on a more upscale look for the area across from the convention center. I like the hotel prospects also. If Aloft goes to Ruvin, Hyatt Place and Hilton Conrad are still very nice and attractive hotels to grab. I don't know if a Hilton Conrad would work with the Marcus owned Milwaukee Hilton right next door though.

Fox Sports Grill isn't a bad name to be floated around either. I guess Milwaukee will have to continue to wait for ESPN Zone, HRC, and HoB. It's not this round.

Funny part is HoB already triggered the same businesses I brought up in earlier posts that had the same pickle with PabstCity. I had a feeling they would have been going to complain their asses off if it was official.

[Coldwake]

Although I can't see his full testimony right now because I'm at work, I really like the transcript shown here. It definately isn't 100% positive but he has a very realistic and rational view of everything it seems.

That only makes me more confident that this could happen.

[brewcityfan]

I also definitely appreciate his blunt comments on some points. At least he's doing his homework while preparing this project for the city.

I have a feeling if there's any project that's questionable right now but will get approved in the end it's this one. Just because of what I said prior and because the city wanted an excellent suitor for this prime land going to waste. Glad to see they found one.

[NaptownBoy]

Where will this one be in relation to the skyline?

[brewcityfan]

http://i140.photobucket.com/albums/r21/g3forc305/Downtown%20Developments/downtownpic1.jpg

Right next to the Hilton.

[MilwaukeeBS]

Where will this one be in relation to the skyline?

Next to the Hilton (20+ story brick building with large antenna on top and red light up Hilton sign)

[brewcityfan]

Next to the Hilton (20+ story brick building with large antenna on top and red light up Hilton sign)

It would be behind the Hilton in the picture, not in front - just to help ya get a better visual.

[Mill Work]

If this gets built we can all say about time.

[brewcityfan]

If this gets built we can all say about time.

Amen to that! :) It would be a great addition to downtown west of the river -and it would hopefully spur more high rise development on that side.

[exit_320]

http://graphics.jsonline.com/graphics/bym/img/oct07/ghazi2_103107_big.jpg
http://graphics.jsonline.com/graphics/bym/img/oct07/complex_103107_big.jpg

Project could get quick start
31-story complex planned for Wisconsin Ave.
By TOM DAYKIN
tdaykin@journalsentinel.com
Posted: Oct. 30, 2007

A $120 million entertainment, hotel and housing development near downtown Milwaukee's Midwest Airlines Center could be under construction by spring, the project's developer said Tuesday.

The proposed Wisconsin Ave. complex is expected to include restaurants, nightclubs and other entertainment-oriented businesses along with a hotel, condominiums and upscale apartments.

Afshin Ghazi said six restaurants, nightclubs and other entertainment-oriented businesses have made tentative commitments to lease around 150,000 square feet at Catalyst, the 31-story project planned for the 400 block of W. Wisconsin Ave.

"We're very pleased with the preliminary interest we've had from tenants," Ghazi said.

Also, Ghazi said he's negotiating with Atlanta-based Noble Investment Group to operate a hotel, with around 170 rooms, at Catalyst. An executive at Noble, which in September bought the Hyatt Regency Milwaukee, couldn't be reached for comment.

In addition, Catalyst would have around 200 condominiums and upscale apartments, he said. Ghazi called those plans manageable, despite a national slowdown in the housing market.

The Redevelopment Authority has agreed to sell the 2-acre, city-owned site to Ghazi for $1, said Andrea Rowe Richards, spokeswoman for the Department of City Development. That land sale will require Common Council approval, she said. Richards also said department officials are discussing the possibility of providing financial assistance for Catalyst.

Ghazi has agreed to buy an adjacent parking structure, south of the city-owned parking lot, from an investors group led by Wispark LLC, the development subsidiary of Wisconsin Energy Corp. Neither Ghazi nor Barry McNulty, Wispark spokesman, would reveal the purchase price for the 700-space parking structure, which has an assessed value of $2.8 million.

Catalyst would "bring a lot of energy to downtown," said Ghazi, who operates Charlotte, N.C.-based Ghazi Co. He plans to complete the land and parking structure purchases by the end of March. Construction could begin later that spring, Ghazi said.

His firm is building a 53-story, 414-unit condo tower in downtown Charlotte that includes a 175-room Aloft Hotel and more than 320,000 square feet of retail, entertainment and office space. The retail space will open by February, followed by a summer opening of the hotel, Ghazi said. The condos will be completed by mid-2009, he said.

Needs signed leases
To make Catalyst a reality, Ghazi must convert the preliminary commitments from retailers into signed leases. He declined to identify the retailers but said they'll be similar to those found at his downtown Charlotte project, known as EpiCentre, and other Ghazi Co. developments.

EpiCentre's tenants include a Fleming's Prime Steakhouse, Fox Sports Grill, Lucky Strike Lanes upscale bowling center, and a five-screen movie theater, Ghazi said.

Fleming's opened a restaurant at Brookfield Square earlier this year, and a combined upscale bowling center/movie theater will open at Bayshore Town Center, in Glendale, by December. But those types of national restaurant chains and entertainment-oriented retailers have generally avoided downtown Milwaukee.

Still, Ghazi said he can persuade his prospective tenants to lease space at Catalyst. He said the businesses interested in Catalyst are attracted by downtown's growing number of condos and apartments, by its nightlife scene and by the development's location near the convention center, U.S. Cellular Arena and Bradley Center.

New parking structure
The development will include a new parking structure for Catalyst residents and the hotel's guests. The parking structure being purchased from Wispark will be for the night-time restaurant and retail customers, Ghazi said. The structure will continue to be used during the day by employees of Bon-Ton Stores Inc., the corporate parent of Boston Store.

Ghazi's plans for Catalyst were initially disclosed in May 2006. He's the latest in a series of developers to attempt a project at the Wisconsin Ave. site, which has been a parking lot for more than 20 years.

The last attempt came in 2004, when an investors group led by John Hunzinger, president of Hunzinger Construction Co., proposed a 255-room Sheraton hotel. Those plans were dropped in 2005 following delays because of environmental contamination found at the site.

The Redevelopment Authority last year received a $200,000 federal grant to help fund the parcel's environmental cleanup.

[D-res]

Definitely good news. Although I don't want to speak too soon. We'll see what happens when April or May rolls around.

[araman0]

Great news! This will be my most exciting project in Milwaukee if/when construction starts.

[NLouisianaJay]

http://z.about.com/d/milwaukee/1/0/S/4/MECfromabove.jpg

now imagine this view w/ the addition of this building.

[exit_320]

Something like this:

http://i219.photobucket.com/albums/cc69/exit_320/MECfromabove.jpg

[NLouisianaJay]

I was not speaking of the exact same angle captain smarty! But the view down Wisconsin Avenue will look amazing with the extra density!

[MilwaukeeMark]

Holy shit Exit, that was pretty damn funny.

[exit_320]

haha, i try :cheers:

[looksee]

As long as we're imagining:

http://img.photobucket.com/albums/v425/looksee/fillin.jpg

[MilwaukeeMark]

^^ Hopefully the finished look will be better than a rendering enlarged via Microsoft Paint but we'll see. ;)

[looksee]

Picky, picky, picky :drunk:

[Fiddlerontheruf]

I'm counting 31 stories on the Ghazi proposal...why does it appear to be the same height as the Hyatt?

[NeuBrew]

Gigantic pixelization could be a rather innovative architectural tactic. It would look like a full-size building from like 2 miles away, but up close just a series of squares.

[Fiddlerontheruf]

Gigantic pixelization could be a rather innovative architectural tactic. It would look like a full-size building from like 2 miles away, but up close just a series of squares.

:lol:

[JPmaverick]

Afshin Ghazi is scheduled to give a speech at the Small Business Times Real Estate & Development "Back to the City" Conference tomorrow morning at the Italian Community Center.

A friend of mine at City Hall said Ghazi issued a press release that mentions he will be making an announcement about the Milwaukee project. I'm not sure if he will be giving a general status report but I hope it's something more exciting. Either way, I'll pass along whatever I find out. If anyone plans to attend, please let us know what happened.

[Skyking2]

I'm counting 31 stories on the Ghazi proposal...why does it appear to be the same height as the Hyatt?

You mean the Hilton (next door), don't you?
I mentioned the same thing earlier in this thread...at least it looks about the same height as the Hilton according to the latest rendering. It may ultimately not be much taller since the bottom seven floors are parking levels. Probably also why 100 E. Wisconsin (37 stories) is considerably shorter than US Bank
(42 stories). The bottom eight floors of 100 E. Wisconsin, or so, are parking levels. Otherwise, that building would be a good bit taller. Of course, the grade also drops another couple of stories from where USB is located to Water and Wisconsin, accounting for more of a height difference.
Anyway, that's probably more than you wanted to hear...

[Markitect]

Developer Afshin Ghazi announced the first tenant for Catalyst today at the Small Business Times Commercial Real Estate and Development Conference. Bar Management Group (of Charlotte, North Carolina, which is also where Ghazi's development company is from) has a concept for an upscale bowling alley, called Big City Lanes, that will have around 18 lanes and occupy between 20,000 and 25,000 square feet.

Ghazi also hopes to attract 5-7 other entertainment concepts and 4 upscale restaurants to Catalyst, thereby creating a compact entertainment district within close proximity to major draws such as the convention center, hotels, and the Shops of Grand Avenue mall.

More info about what was covered at the conference from the Small Business Times: Ghazi project lands upscale bowling alley tenant (http://www.biztimes.com/daily/2007/11/8/ghazi-project-lands-upscale-bowling-alley-tenant)

[milwaukeeunseen]

If this bowling alley (and Catalyst) get built, I hope they put it on the street level with plenty of glass, so people walking past could look inside and see people bowling.

[DooMer_MP3]

Interesting article. I am excited, but I guess I will have to remain cautiously optimistic. This is Milwaukee, we're talking about. I'll be waiting for the local business/restaurant owners to protest this out of the city lol. The last part of the article on transit is interesting. Too bad a good majority of our leaders lack the foresight to see the longterm benefits of a real transit system.

[MilwaukeeD]

If this bowling alley (and Catalyst) get built, I hope they put it on the street level with plenty of glass, so people walking past could look inside and see people bowling.

the bowling alley would actually be on the second or third floor, with an entrance at street level. but don't worry, there will be plenty of activity at street level as well. all of the restaurants and entertainment venues spill out into that small courtyard and onto Wisconsin.

[MilwaukeeD]

There is now a website up with a video and some floor plans, etc.

http://www.catalystmilwaukee.com/

[DooMer_MP3]

There is now a website up with a video and some floor plans, etc.

http://www.catalystmilwaukee.com/

Excellent. I like that little presentation a lot. At this point, any news is good news, as I still have this fear that the project fails and we get something like that 6 story hotel from the Development thread.

[exit_320]

So I know they are taking ownership of the parking structure.. are they tearing it down and rebuilding it?

[Jesse276]

So I know they are taking ownership of the parking structure.. are they tearing it down and rebuilding it?

No, they needed it to support their entertainment options. It is currently and will continue to be used for parking for the Boston Store corporate offices next door during the week. In the evenings and weekend it will be available for people visiting the development.

[exit_320]

I know it is being used by them and boston store in the future.. just wondering if they were rebuilding it. The plans seem to show a rebuilt parking structure.

[MilwaukeeD]

The plan on the website just remodels the existing deck, putting some retail on the first floor, making a direct connection to the new building and adding some elevators. No one would rebuild that deck and keep that weird configuration with the giant donut hole in the middle.

[qwerty44]

I have drove past there on many occasions and do not see any construction or ads for the building like I do when I drive past the site for the moderne. Does anyone know when he plans to begin construction?

[Markitect]

I have drove past there on many occasions and do not see any construction or ads for the building like I do when I drive past the site for the moderne. Does anyone know when he plans to begin construction?

After he has tenants signed on, and construction loans acquired, and final approvals from the City.

[eMatt543]

After he has tenants signed on, and construction loans acquired, and final approvals from the City.

Gee, that doesn't sound like it's going to take long at all... :ohno:

[MilwaukeeD]

Everything is on schedule though.

[Skyking2]

After he has tenants signed on, and construction loans acquired, and final approvals from the City.

IOW, there's some work to do. And, if the downtown condo slowdown continues, Ghazi will be hard pressed to build much beyond 20-22 stories unless people are willing to shell out big bucks not to have much of a water view. Hope I'm wrong, but that location seems like a tougher sell for high-end condos.

[MilwaukeeD]

they will be doing a mix of condos and apartments depending on the strength of the market. so hopefully the weak housing market won't delay things too much, but you are right it will certainly have an effect.

[eMatt543]

they will be doing a mix of condos and apartments depending on the strength of the market. so hopefully the weak housing market won't delay things too much, but you are right it will certainly have an effect.

The Blatz doesnt have a water view either, and that's almost sold out... So who knows?

[Coldwake]

The Blatz doesnt have a water view either, and that's almost sold out... So who knows?

The blatz isn't exactly the most high end of condos though.

[MilwaukeeD]

ghazi, however, isn't going to do a lot of high end condos either, save for the top floors.

[Badgers77]

Lets hope this project gets started soon. Downtown Milwaukee is CHANGING.

It is these little projects at first that eventually, a few years from now, will lead to us landing something major.

[Coldwake]

Lets hope this project gets started soon. Downtown Milwaukee is CHANGING.

It is these little projects at first that eventually, a few years from now, will lead to us landing something major.

You think this is a little project?

[Riverwest Ace]

This is a huge project. It is probally the most important development in downtown.

[Coldwake]

This is a huge project. It is probally the most important development in downtown.

Amen...

I like this guy!

[Riverwest Ace]

Amen...

I like this guy!

thanks man! You seem like a cool dude yourself. :cheers:

[Riverwest Ace]

The Catalyst will boost Wisconsin Ave. nightlife, entertainment, and retail. I reckon it will have a very positive impact on the Grand Ave. Mall, the Midwest Airlines Center, and the godawful West side of downtown.

My dream (well, aside from the ones where Im rich, having sex with Scarlett Johannsen, or the Brewers winning the WS) is to see Wisconsin Ave. be somewhat like Michigan Ave. in Chicago. Something like the Catalyst could bring the kind of pedestrian traffic down there to make something like that possible in the future.

[Twoaday]

Ace Agreed the Catalyst has the potential to make just that kinda of impact.

[Badgers77]

Hope they make the tower just a little bit taller though, give it some "impact." By little projects, I just meant it is is projects like these that will eventually get us a building taller than the US Bank Tower.

[DooMer_MP3]

This project will leave me heartbroken if it folds. I really hope both Milwaukee and Ghazi don't drop the ball on this one. I think its INSANELY important for the city.

[Badgers77]

New nearby project; it would be nice to see them both happen:

$75 million plan offered for downtown site
A proposed $75 million development at N. 6th and W. State streets that would include student housing, offices, retail space and a parking ramp won preliminary endorsement today from a Milwaukee County Board committee.

The "Civic Center" project was backed by the board's Economic and Community Development Committee on a 7-0 vote. It would sit on prime county-owned land now used as a parking lot that's close to the courthouse, Milwaukee Area Technical College, the Milwaukee Theatre and the Midwest Airlines Center.

The New Vision Development Co. would get an option of up to one year to buy the 1.89-acre property for $3.1 million, if the County Board approves the deal Feb. 7.

The development calls for a seven-story residential apartment tower aimed at students. Its proximity to MATC, Marquette University, Milwaukee School of Engineering and the University of Wisconsin-Milwaukee should attract plenty of tenants, project spokesman Steven Stewart said. The tower, housing 450 students, would be built on the north side of the site, Stewart said. A second tower on the south side of the site might be added later, he said.

Stewart said the apartments would be affordable for students, but he did not say how much the rent would be.

Other features of the project include a 600-stall parking ramp, 50,000 square feet of retail space and an "academic tower" with 58,000 square feet of space for offices, classrooms and laboratories that could be leased by MATC, Stewart said. Spokesmen for New Vision Developers said they hoped to lease 25% of the space in the complex to MATC, but acknowledged they had not yet secured a commitment for that.

An MATC spokesman wasn't immediately available for comment.

The ground floor would include a sit-down restaurant, coffee shop, bank and other retail, according to the project proposal.

[omahajayscu]

This project sounds amazing. When I first moved here from Omaha 6 months ago (I'm a freshmen at Marquette), I was wondering why in the hell there was a massive, undeveloped parking lot across the street from the Midwest Airlines Center and right next to Grand Ave Mall. This is a huge development for downtown Milwaukee. When the plans for this came out, there was an awful story in the Marquette Tribune where a student said she didn't like the project because she felt a new building in downtown Milwaukee would ruin its historic appeal. Funny, because it is across from the Midwest Airlines Center and Federal Plaza, boy, those both scream "historic."

Anyway, I hope this gets built, I look forward to seeing this get built.

[MilwaukeeD]

http://www.biztimes.com/realestateweekly/2008/2/13/#ghazi-cos-charlotte-project-progresses

Ghazi Co.'s Charlotte project progresses
Charlotte, N.C.-based Ghazi Co., which is planning a major mixed-use development in downtown Milwaukee, is making progress on building a similar, but larger, development in Charlotte according to a recent news report.

In Charlotte, Ghazi Co. is building EpiCentre, which will have more than 300,000 square feet of retail, restaurant, and entertainment space, 414 luxury condominiums, and a 176-room Aloft hotel. To see the project's progress check out the construction web cam.

In Milwaukee, Ghazi Co. plans to build Catalyst, an 800,000-square-foot complex to three connected buildings, on a parking lot southwest of Wisconsin Avenue and North Fourth Street, with more than 200 residents, a 160-room hotel and 150,000 square feet of retail, restaurant and entertainment space.

Plans for the Milwaukee project are progressing, said Ghazi Co. associate Armin Ghazi.

"We're plugging along," he said. "We're getting our construction pricing. We do plan to break ground this year."

Although the collapse of the housing market has made many lenders more cautious about financing large commercial developments, Ghazi said high quality projects at prime locations can still obtain financing.

"There's still money out there," he said. "We're in discussions with several sources."

[DooMer_MP3]

Phew, good to hear. Seriously, if Milwaukee and/or Ghazi drops the ball on this, I will be completely deflated. I honestly view this as one of the most important projects of the decade for Milwaukee.

[Skyking2]

Phew, good to hear. Seriously, if Milwaukee and/or Ghazi drops the ball on this, I will be completely deflated. I honestly view this as one of the most important projects of the decade for Milwaukee.

Well, you better ante up and grab a condo, or two -- and tell your friends to get one as well. I hope I'm wrong (although it's too early in the year for that) but the soft housing market, coupled with an increasingly-saturated downtown condo market, may adversely affect this project. Is the timing off?
We'll see, but 2-3 years ago this thing might have sold enough condos to warrant 35 stories. Right now, Ghazi will be "plugging along" to sell enough condos to make this a stand-out building. I'd hate to see a diluted version of say, 20 stories. I think his choice of words in the above release -- plugging along -- is interesting, if not telling.

[Badgers77]

20 stories is still decent, but it would be disappointing. It is still tall enough to be happy with on that lot of land, though. Let's really, really hope it gets built as planned though... it would just be gigantic for really beginning to change the image of downtown.

[Twoaday]

To show that Ghazi does get their projects built here are a couple photos I took of EpiCentre in Charlotte, NC this past summer

http://farm3.static.flickr.com/2289/1809038558_2a5c9aa73a.jpg (http://www.flickr.com/photos/davereid/1809038558/)


http://farm3.static.flickr.com/2203/1809036964_367d40ae69.jpg (http://www.flickr.com/photos/davereid/1809036964/)

[MilwaukeeD]

Doesn't have to be condos. The apartment market is doing pretty good right now.

[Coldwake]

Plus, although it increased in the past year, Milwaukee's foreclosure rate (and thus the health of the real estate market) is below the average of the nations largest 100 metro's. Also, the amount Milwaukee's rate went up was less then the majority of those metro's.

MKE metro foreclosure rate is 1.017 in 2007... thats below the national average (1.033) and well below the largest 100 metro's average (1.382). The places having problems are at 2,3,4 or even almost 5%!

Source: http://www.realtytrac.com/ContentManagement/pressrelease.aspx?ChannelID=9&ItemID=4119&accnt=64847

Besides, as stated already the apartment market is very good. Last I heard the occupancy rate was around 97-99%?? Someone else will have to confirm that though.

[Twoaday]

Yea the last report I saw indicated the downtown apartment market had the occupancy rate right about what you said 95+%

[Skyking2]

Hope you're all right, and Milwaukee can support an even larger project. Imagine the current rendering with another 5-7 stories on it!

[Badgers77]

It's very preliminary... I just hope they change the design of the tower and make it less of just a windowed box. Their first version really had its own taste and flavor... this one is kind of uninteresting.

But I'll take it in a heartbeat, oviously.

[DooMer_MP3]

Hope you're all right, and Milwaukee can support an even larger project. Imagine the current rendering with another 5-7 stories on it!

See, this is one project where I think height is of the least of our concern. Honestly, the thing could be 10 stories and have all of the retail/entertainment as proposed, and it would still be an amazing project for this city. If they pull this off right, I think it will open the doors to the taller projects you want to see so bad. This really could be a catalyst.

[MilwaukeeD]

deleted

[exit_320]

deleted

there isn't going to be an update anymore?

[MilwaukeeD]

Delete

[MilwaukeeD]

Gigantic banner is going up right now on the parking garage to the south of this site with a rendering of the project and leasing information. This thing is about 3 stories tall.

[DooMer_MP3]

Awesome. I will have to check it out. As always, any news on this project is good news!

[exit_320]

Drove by it last night, only had part of the banner up, hopefully they will finish it today. I just wish they would break ground. So anxious for this project

[eMatt543]

any news on this project is good news!

I wish it was at least taller than the Hilton next door... Even at the current height, it will still be a great addition to Wisconsin Ave.. More density on that street will be good to form a main-drag of downtown.

[Milwaukee, WY]

I heard from a very high up source that the city is close to offering a TIF package for this one...

[milwaukeeunseen]

I walked past the banner just now ... wow. This is a good sign (pun intended) that the developer is jumping headfirst into getting this project completed.

[qwerty44]

I wish it was at least taller than the Hilton next door... Even at the current height, it will still be a great addition to Wisconsin Ave.. More density on that street will be good to form a main-drag of downtown.

I was under the impression that it was going to be taller than the hilton; did they scale down from the original plan?

[Warder]

Interestingly enough, for the time being the banner has been removed...

[D-res]

^^ Double-you tee eff? That can't be good. I drive in that area a couple times a week, I'm surprised I never saw it while it was up.

[MilwaukeeD]

All of that wind last week tore it up. Not sure if it will go back up, but definitely not a reflection on the status of the project.

[eMatt543]

All of that wind last week tore it up. Not sure if it will go back up, but definitely not a reflection on the status of the project.

Whew.... Good to hear! :dizzy:

[DooMer_MP3]

Heart attack averted!

[Paule]

So, what the hell? What's going on with this? Anything?

[Markitect]

Design revisions, TIF discussions, tenant searching, details being ironed out...lots of stuff.

[qwerty44]

Is there any place to see the progress or does anyone know offhand anything specific?

[Markitect]

Is there any place to see the progress or does anyone know offhand anything specific?

They're still in the behind-the-scenes type stage, trying to work out deals for public financing, figuring out how to revise the design to accommodate retail frontage along Michigan Street/parking garage, looking for more anchor tenants, getting all their ducks in a row, so to speak...stuff that's not really ready for the public eye yet.

There's also the promotional website (http://www.catalystmilwaukee.com) for the proposal to drum up interest.

When they've got something really newsworthy for the public, you'll read about it in the papers and on the website, so just be patient and keep an eye out.

[Paule]

They're still in the behind-the-scenes type stage, trying to work out deals for public financing, figuring out how to revise the design to accommodate retail frontage along Michigan Street/parking garage, looking for more anchor tenants, getting all their ducks in a row, so to speak...stuff that's not really ready for the public eye yet.

There's also the promotional website (http://www.catalystmilwaukee.com) for the proposal to drum up interest.

When they've got something really newsworthy for the public, you'll read about it in the papers and on the website, so just be patient and keep an eye out.
I was afraid of hearing that type of news...but thanks for forth coming with what you know, or don't know.

[Markitect]

I was afraid of hearing that type of news...but thanks for forth coming with what you know, or don't know.

Not sure what there is to be afraid about. Progress is indeed being made, the progress status I mentioned above was reported just a few weeks ago in the Business Journal. Expect to hear more about it as the City considers a TIF this summer.

[bjkeys321]

This is my favorite project and I've heard almost nothing about it lately. Please tell me it's not going to fall through!

[ajknee]

DAMMIT!!! I got all excited because I thought there was news.

[bjkeys321]

haha, sorry? I dunno.. I'm just as anxious as you are for this thing. Moderne too.

[qwerty44]

I was also wondering what is going on with this. It was announced well over a year ago and nothing besides a banner that was blown down in a couple of days about 6 months ago was there. Is ghazi having trouble finding tenants or is the environmental problem more problematic than he thought or what?

[neqquah]

DAMMIT!!! I got all excited because I thought there was news.

...

[MilwaukeeD]

Environmental is definitely not a problem. Like every single project in the City (and most of the country) financing is very difficult at this time.

[MilwaukeeD]

Large article in this morning's BizJournal.

http://milwaukee.bizjournals.com/milwaukee/stories/2008/08/04/story3.html?t=printable

Friday, August 1, 2008
Ghazi insists downtown project still on
The Business Journal of Milwaukee - by Rich Kirchen

Financial disputes have left unfinished a condo tower and delayed the entertainment complex at his EpiCentre in Charlotte, N.C., but Afshin Ghazi insists they’ll have no effect on his high-profile $200 million Catalyst project proposed for downtown Milwaukee.

Ghazi said in a phone interview this week that the Catalyst is on schedule for groundbreaking in spring 2009 at North Fourth Street and West Wisconsin Avenue across from the Midwest Airlines Center. That’s later than his previously announced schedule of spring 2008 for a 31-story hotel, retail and residential development.

Ghazi initially disclosed in May 2006 his interest in the long vacant, city-owned surface parking lot and updated his plans in October 2007.
“We’re still just as bullish on the project,” Ghazi said.

The only change Ghazi plans is indefinitely postponing the residential portion, which was to consist of about 200 condos and apartments. He said that’s necessary because banks “are not able to finance residential projects” in the current market.

Milwaukee city officials say they’re proceeding with plans to sell the lot to The Ghazi Co., of Charlotte, for $1, and are formulating city financial assistance for the project. Ghazi’s agreement with the city calls for finalizing a development plan and possible tax incremental financing by Sept. 15, said Andrea Rowe Richards, a spokeswoman for the Milwaukee Department of City Development.

“We’re still optimistic about the project based on conversations with the developer,” she said.

Rowe Richards said city officials asked Ghazi about the issues plaguing the Charlotte project, and were satisfied with his response. The proposed Milwaukee development is “a different situation” and Ghazi is working with different partners than in Charlotte, she said.

Soured relationship
Ghazi said all the problems with the EpiCentre in Charlotte stemmed from his relationship with Flaherty & Collins Properties of Indianapolis, which is developing a 42-story condo tower atop one of the five buildings.
Flaherty & Collins refused to pay Ghazi for construction of a parking garage and development rights for the condo tower, saying the structure was improperly built and unfit as the base for the condo tower.

Construction stopped on the 420-unit condo tower after the developers failed to sign an ownership agreement.

“They didn’t have the financial wherewithal or the financing to move forward,” Ghazi said.

On June 2, The Ghazi Co. filed a breach of contract claim against Flaherty & Collins for failure to pay labor and materials, and seeks $92 million in damages. Four days later, Flaherty & Collins filed a $70 million lawsuit in federal court against The Ghazi Co. The lawsuits are pending.

Lee Spinks, a Charlotte attorney representing Flaherty & Collins, disagreed with Ghazi’s characterization of the situation. Spinks said the only thing holding up the condo project is Ghazi’s refusal to sign documents requiring him to comply with his previous promises.

“We had the funding — we had loan commitments,” Spinks said. “He refused to sign.”

Some restaurants and nightclubs at the EpiCentre have opened. Ghazi said a dozen more will open over the next three months, and an Aloft hotel will open in November. Popular bars include Suite, Whisky River, Howl at the Moon and Pavilion.

“The concepts we opened in the EpiCentre are doing phenomenal sales,” he said. “I guess people drink more when times get tough.”

Prior to encountering complications with the EpiCentre in Charlotte, Ghazi in 2006 walked away from a big downtown-area plan in St. Louis.

Won’t disclose tenants
Ghazi still won’t say which tenants are looking at the Catalyst in Milwaukee, or identify the hotel flag he’s pursuing. He said he has lease commitments for more than 50 percent of the commercial space. He’ll disclose the tenants when he receives the final approvals from Milwaukee city officials, he said.
Several observers in the Milwaukee commercial development industry have long been skeptical of Ghazi’s project.

The Ghazi Co. was the only developer that responded to a city request-for-proposals in 2006. The site has remained undeveloped for more than 20 years and at least three previously announced plans never materialized.

However, Rowe Richards said the project is on track. If the development plan and tax incremental financing proposal are finalized by Sept. 15, the next steps will involve seeking approvals from the Redevelopment Authority and the Milwaukee Common Council, she said.

Two companies working with Ghazi in Milwaukee said they’re still pursuing the project under the assumption it will happen.

Kahler Slater Inc. of Milwaukee, the project architect, is still on the project, said Doug Nysse, a principal at Kahler Slater. He declined further comment.
Wispark Inc. remains under contract for Ghazi Co. to buy a parking structure connected to the downtown Boston Store on the south end of the proposed Catalyst site, said Brian Manthey, a spokesman for Wispark corporate parent Wisconsin Energy Corp.

“They’re obviously still trying to pull everything together in a difficult time,” Manthey said.

Milwaukee Ald. Bob Bauman, whose district includes the Catalyst site, said it’s fine with him that the city continues talks with Ghazi.

“Nobody else is beating the door down for that site,” Bauman said.

[NeuBrew]

That development is essential for that spot. It makes too much sense.

Good news.

[NorthernIL Mike]

Thats good news but it went from a 120 million project to a 200 mil if the first article and last are correct? Still not holding my breath for the spring 2009 break though but at least it seems positive!

[MilwaukeeD]

http://www.jsonline.com/story/index.aspx?id=795652

Another downtown project delayed
Developer will still pursue Catalyst complex
By TOM DAYKIN
tdaykin@journalsentinel.com
Posted: Sept. 16, 2008

Plans for a major downtown dining and entertainment complex have been delayed by a slowdown in the nation’s retail sector, as well as continued tight conditions among commercial real estate lenders.

The Catalyst project, planned for a city-owned parking lot south of W. Wisconsin Ave. between N. 4th and N. 5th streets, is still alive, developer Afshin Ghazi said Tuesday.

But his Charlotte, N.C.-based development firm, Ghazi Co., missed a Monday deadline to show Department of City Development officials that financing has been secured for the project.

Ghazi said national economic conditions have affected the project’s schedule. He said a year ago that construction could begin by spring 2008.

City officials are still negotiating with Ghazi even though he missed the financing deadline, said Andrea Rowe Richards, Department of City Development spokeswoman. The city and Ghazi are “very close” to moving forward with a proposal for the site, Richards said. She said Ghazi has a 45-day grace period after the deadline.

Ghazi holds a purchase option for the site, which the city has tried to develop for several years. The parking lot is just across Wisconsin Ave. from the Midwest Airlines Center convention hall. If Ghazi can secure financing for the Catalyst, the city will sell the 2-acre lot to his firm for $1.

Ghazi said he’s in discussions with several prospective lenders for the project. The city Redevelopment Authority granted Ghazi the purchase option for the site in March 2007.

Earlier plans called for a $120 million development that would include 150,000 square feet of restaurants, nightclubs and other entertainment-oriented businesses, along with a 170-room hotel, offices and about 200 housing units.

The housing and office segments have since been dropped from those plans, Ghazi said Tuesday. He said the prospective retail tenants are still interested in the Catalyst site.

Ghazi has said the businesses interested in Catalyst are attracted by downtown’s growing number of condos and apartments, by its nightlife scene, and by the development’s location near the convention center, U.S. Cellular Arena and Bradley Center.

The nation’s economic slowdown, particularly among retailers, led Chicago developer Richard Curto to drop plans recently for a shopping, entertainment and housing complex on an empty block between N. Milwaukee St. and N. Broadway and E. Lyon St. and E. Ogden Ave.

[ThatGuy]

The housing and office segments have since been dropped from those plans, Ghazi said Tuesday. He said the prospective retail tenants are still interested in the Catalyst site.

Ugh. That was one of the main features that I thought was exciting about the project. Obviously a vibrant retail was the most important, as well as a hotel, which is essential based on the location.....

but no housing and office? I dunno, in my opinion, if that is out of the equation, I say they hold out for something better. A random hotel can be built somewhere else, and taht retail can go in Grand Avenue which already has more than enough room available.

[DooMer_MP3]

Yeah, sounds like it'll be scaled down totally in height then, yes? Sadly, I'd have to say no thanks then. Very disappointing.

[Twoaday]

Well if the Catalyst is anything like EpiCentre as far as retail. They really mean bars and restaurants so that retail is very different than at the Grand Ave.

[bjkeys321]

http://www.bizjournals.com/charlotte/stories/2008/09/15/daily54.html

that article from today says residential is still in the propsosal.

[Skyking2]

http://www.bizjournals.com/charlotte/stories/2008/09/15/daily54.html

that article from today says residential is still in the propsosal.


I doubt it. And, if the residential part of the deal is dead, bury the Catalyst.
We don't need a phony entertainment district void of adjacent residents. Unless Ghazi can guarantee the residential component of the development
(25-30 stories), I say hold off until the right developer comes along. This parcel is far too valuable to allow a Class B or C development. We've waited this long, let's not settle for just anything!

[Coldwake]

The whole point though is that we need/want a new sizeable hotel at this location. Thats the most important component.

[ThatGuy]

But a mediocre hotel can go anywhere, we need a hotel that stands out. if bars and thatres are what everyone was interested in having this there for, I don't think the city is hard up for bars, and a theatre (marcus multiplex) is being proposed down the street.

I really think that that slice of land needs to be dedicated to something truly spectacular. Plopping the first hotel down there that wants it is not a good idea imo.

If a motel 6 wanted to build a 150 room hotel there would everyone just be fine with that? I think not.

[MilwaukeeD]

But a mediocre hotel can go anywhere, we need a hotel that stands out. if bars and thatres are what everyone was interested in having this there for, I don't think the city is hard up for bars, and a theatre (marcus multiplex) is being proposed down the street.



Oh, you mean like the theater that Marcus was going to put at PabstCity four years ago?

The theater proposal on Water still requires a major office tenant to get that development off the ground. It was recently reported that Red Prairie, one of the suspected tenants, is no longer looking at downtown.

Call me when Marcus breaks ground...until then...how long should downtown wait until it finally gets a movie theater?

[ThatGuy]

As long as it takes to build a quality one in the right location. I dont think the entertainment additions to this proposal make it suddenly worth the location either.

Id much rather something well thoguht out be built in the city, than something rushed together, just to fill a gap that is merely cosmetic, and not "needed"

[MilwaukeeD]

Rushed together? This proposal has been out there for almost three years.

Merely cosmetic? If anything, this is filling a gap for something that is needed: foot traffic generators near Grand Ave and hotel/entertainment to help the Midwest Center book more conventions.

Downtown has had no major entertainment/retail built in years...really none since the housing boom. What should the city be waiting for?

[Markitect]

Also, Ghazi has mentioned that Catalyst has been designed so that it could be built in phases, rather than all at once. It was set up that way in the event that parts of the project that needed more time to be marketed and financed could have more time (such as some 200 residential units, which is a huge undertaking, even when the economy is strong), while allowing other parts that may need less time with marketing and financing to get up and running without having to wait (such as the hotel and retail/entertainment portions of the project).

Assuming Ghazi can successfully work out leases for the main anchor tenants he has planned, and can get the financing he needs in order to build their spaces, he ought to be able to break ground on those parts of the development. The residential portion of the development could very well be built once the housing market picks up again.

[ThatGuy]

But using that location jsut for retail that could EASILY be placed INSIDE the Grand Avenue (which would increase foot traffic there more than something a block away) is just plain stupid. If they are cutting things out, I call that rushed together.

I guarantee if we let them build what is essentially a shell of the former catalyst proposal, we will all be upset by it quite quickly as it is finnished. If it cannot be a GREAT proposal, then don't build it. I don't need a bunch of mediocre proposals taking up all the available land downtown.

[Twoaday]

I just like to point out a couple of things. First there is no shortage of available land downtown, and removing a parking lot for development is a great use of land. Secondly Ghazi's EpiCentre in Charlotte, NC also ended up scaling back but the retail section have been tremendously successful.

I know we have many bar districts but this setup would really be aimed at bringing the suburbanite downtown and appeasing the business traveler looking for a familiar establishment. I still hope it goes up.

[MilwaukeeD]

But using that location jsut for retail that could EASILY be placed INSIDE the Grand Avenue (which would increase foot traffic there more than something a block away) is just plain stupid. If they are cutting things out, I call that rushed together.

I guarantee if we let them build what is essentially a shell of the former catalyst proposal, we will all be upset by it quite quickly as it is finnished. If it cannot be a GREAT proposal, then don't build it. I don't need a bunch of mediocre proposals taking up all the available land downtown.

Ghazi doesn't own Grand Ave. He has an option on 4th/Wisc. He cannot just easily put all of the tenants that he built a relationship with in his Charlotte project into the Grand Ave. If it were so easy, the owners of Grand Ave would have already done it.

The layout of Grand Ave does not work well for a movie theater and large entertainment. The Plankinton Arcade has already been messed with enough, and putting in a theater would require that it get completely covered. Grand Ave has great daytime traffic, but it needs night/weekend traffic to attract better tenants. That is exactly the kind of traffic that the Catalyst would bring to the area.

As Twoaday said, there are plenty of vacant lots downtown (Park East, along I-794) and several within just a few blocks of here (2nd/Michigan, 3rd/Wells, 8th/Wisc). Convention hotels, residential towers, etc. can easily go on those lots.

[Markitect]

A couple weeks ago the Business Journal had a few articles on the status of The Shops at Grand Avenue. Even the mall's owners and tenants are supportive of Ghazi's Catalyst proposal and the potential it has to attract not only Downtown area residents and workers, but also students from the nearby colleges/universities, tourists, and conventioneers from the nearby convention center/arenas/theaters/hotels.

Catalyst and Grand Avenue would complement each other, not compete with each other. The types of businesses going into Catalyst are not necessarily the same types of businesses that exist currently, or could exist in the future, within the mall. They are things that may not fit, in the most literal sense, within the mall because of the size/space requirements needed or by the way the buildings are configured.

Also do not forget that Catalyst is not "just retail," a hotel is also in the plans, which is ideal for the convention center right across the street.


The omission of a tower certainly does not make the proposal mediocre, or rushed, or watered down. The utmost important aspects of the proposal, and their impacts on Downtown, are still in tact at this point.

[=dba=Ronin]

What sort of influence does Marcus Corps. have on all this...if any...being that they plan on putting in a hotel right across the street from the Hilton? My sister used to work at the Hilton, now working at the Pfister. When I showed her the Catalyst plans, she insisted it wouldn't get built if Marcus has their say. I don't see how they could do anything to stop it, but was just curious if anyone might know differently.

[looksee]

What sort of influence does Marcus Corps. have on all this...if any...being that they plan on putting in a hotel right across the street from the Hilton? My sister used to work at the Hilton, now working at the Pfister. When I showed her the Catalyst plans, she insisted it wouldn't get built if Marcus has their say. I don't see how they could do anything to stop it, but was just curious if anyone might know differently.

This is just the sort of foolish rumor-mongering that makes some Milwaukeeans still sound like they live in a hopelessly backward ignorance-plagued European hamlet.

Don't know if your sister said what she did out of pride in being part of the Marcus organization, or if she half-whispered in that conspiratorial tone that tries to make any kind of nonsense sound as if it's some kind of dangerous secret knowledge.

I don't mean to sound harsh, but use your head.
More new hotel rooms = better chance for convention business = lower vacancies for all quality downtown hotels.
And even if Marcus Corp. was opposed, the city is not about to forego a new source of tax revenue.
Anything that actually enhances downtown benefits all concerned.

[=dba=Ronin]

whoa whoa whao! Easy there gunner. My sister in no way shape or form represents Marcus nor meddles in their buisness ventures. Her reaction to the plans were instilled simply from her years of experience in working with Marcus, and knowing how they like to control anything they can. It was with niether a conspired nor arrogant mindset that she made those statements...she just knows how they like to play.

Perhaps I should have worded her reaction better in my post, I did make it sound like you are protraying now that I re-read it, but I assure you she isn't pulling any strings in this matter...and she sure as hell wasn't saying it out of pride.

Now, as for my head...

[Jesse276]

whoa whoa whao! Easy there gunner. My sister in no way shape or form represents Marcus nor meddles in their buisness ventures. Her reaction to the plans were instilled simply from her years of experience in working with Marcus, and knowing how they like to control anything they can. It was with niether a conspired nor arrogant mindset that she made those statements...she just knows how they like to play.

Perhaps I should have worded her reaction better in my post, I did make it sound like you are protraying now that I re-read it, but I assure you she isn't pulling any strings in this matter...and she sure as hell wasn't saying it out of pride.

Now, as for my head...

Just ignore his rants and don't feel sorry for bruising his feelings. The worst he'll do is pull out a half-arsed attempt at sarcasm via photo montage.

[bjkeys321]

what exactly is ghazi's drama in NC..?

[looksee]

whoa whoa whao! Easy there gunner.

I should have some way of expressing myself without personalizing things.

But a question remains. You say your sister doesn't meddle in Marcus Corp. business ventures, but can you reveal, without jeopardizing her position within the company, an example she provides of her understanding of how they operate?

My actual concern is about propagating images of a non-governmental entity, in this case about Marcus Corp., having the power to control what gets built by others.
I know this is a very casual forum, but that's still a rather serious accusation, based on, as far as I can tell, one individual's impression of their employer.
It's unlikely anyone on this site would be in a position to actually refute or confirm it other than by logical inference, so it in a sense just remains "out there" -- possibly true, or half-true, or completely ridiculous -- and that, to my mind, is rumor-mongering, and simply shouldn't be engaged in.

The worst he'll do is pull out a half-arsed attempt at sarcasm via photo montage.

http://www.cartoonstock.com/lowres/dre0544l.jpg

[=dba=Ronin]

But a question remains. You say your sister doesn't meddle in Marcus Corp. business ventures, but can you reveal, without jeopardizing her position within the company, an example she provides of her understanding of how they operate?


Not really. I dont get into too many discussions with her about her work. I just know she huffs and puffs a lot when she does talk about them. Besides, her position is localized and not involved at the root level. Its no different than anyone else having an opinion of the company they work for.


My actual concern is about propagating images of a non-governmental entity, in this case about Marcus Corp., having the power to control what gets built by others.
I know this is a very casual forum, but that's still a rather serious accusation, based on, as far as I can tell, one individual's impression of their employer.
It's unlikely anyone on this site would be in a position to actually refute or confirm it other than by logical inference, so it in a sense just remains "out there" -- possibly true, or half-true, or completely ridiculous -- and that, to my mind, is rumor-mongering, and simply shouldn't be engaged in.


This was by no means an accusation or an attempt at instilling propaganda. It was a simple opinion. She wasn't saying what she thought might happen will happen...that is why I was asking whether or not anyone heard anything like it happening.

Your tactic of avoiding engagement is a bit stark. This is afterall a discussion forum, which you yourself pointed out. If you want to limit the discussions to only absoloute truths you probablly wouldn't have much to talk about.

You can perceive this however you wish, but I am not too afraid that a runaway rumor-mill has been instigated.

[looksee]

Your tactic of avoiding engagement is a bit stark.

Duh??? :?

but I am not too afraid that a runaway rumor-mill has been instigated.

How reassuring that you understand how false accusations never get going.
Rule1: Consider the source.

(The above response may qualify as 1/2 arsed sarcasm, minus the photo montage.)

[GarfieldPark]

From an out of towner's perspective - having read different things about development plans in Milwaukee on this site for the past several years - the idea that Marcus might oppose a hotel doesn't sound surprising. It seems like this has happened a time or two in the past several years - primarily when there was discussion about some type of city subsidy to help build a new hotel. It also sounds like what I was reading a few years ago with regard to the Pabst brewery redevelopment. A lot of local businesses were opposing city assistance for that project - and it stopped it - at least for a while, didn't it? (Although, I think something is happening at the Pabst site now, isn't it?) It seems like Milwaukee and Cincinnati are the two Midwest cities where the most controversy occurs relating to city subsidies for projects, in my opinion.

[Paule]

Has anybody heard anything on this project? last I heard the were financial "disputes".

[Coldwake]

I believe it's been cancelled for now due to the economy.

[MilwaukeeD]

The Redevelopment Authority gave them a 6-month extension in December.

[bjkeys321]

New rendering available on the ghazi website. I don't know how long it's been up there.

http://www.theghazicompany.com/future_projects/catalyst.html

[looksee]

http://www.theghazicompany.com/images/future_projects/catalyst/catalyst1.jpg
http://www.theghazicompany.com/images/future_projects/catalyst/catalyst2.jpg
http://www.theghazicompany.com/images/future_projects/catalyst/catalyst3.jpg
http://www.theghazicompany.com/future_projects/catalyst.html

[NeuBrew]

It would be terrific for the city if this could still get built. I wonder if the city won't consider some further TIF money in this market.

[Boatnurd]

That first picture is about 10 stories shorter than the others. It looks like crap! a 15-story building is not suited for that prominent location. It is more suited for a taller 20+ story structure as posted in the 2nd picture. Not sure they are for real based on the rendering discrepancy. I do like the 2nd rendering and hope this takes off when the economy shows some signs of growth.

[exit_320]

Wow. What a disappointment.

[bjkeys321]

That first picture is about 10 stories shorter than the others. It looks like crap! a 15-story building is not suited for that prominent location. It is more suited for a taller 20+ story structure as posted in the 2nd picture. Not sure they are for real based on the rendering discrepancy. I do like the 2nd rendering and hope this takes off when the economy shows some signs of growth.

I wouldn't go as far to say that it looks like crap, but after seeing the way better renderings before the updated ones, it's definately a downer to see what it could have been. or still may be. Who knows? Either way the new structure definately won't do the location its justice.

[Badgers77]

I still like it.

Build it.

[EastSider]

It'd take the new height. The action at the street-level would make up for it. The original retail design probably would have put the Grand out of business.

Anyone else think it's weird the plaza area isn't on the corner?

[Skyking2]

I still like it.

Build it.

No! That space is too valuable to settle for this. Wait a year and see what the economy brings. This new plan would not enhance this city's image, nor would it do much for the convention business here. Looks like something you'd see going up in Peoria.

[Paule]

I'm not so sure that because of this new rendering that that means Catalyst 2 has been cancelled. The new rendering is called Catalyst 1. I think this is done so that if it's certain they can't get the financing for 2 they will then try and get it for 1. Otherwise why would they keep the rendering for 2 up on the site? I don't think there is any reason for us now to lose hope.

[bjkeys321]

I'm not so sure that because of this new rendering that that means Catalyst 2 has been cancelled. The new rendering is called Catalyst 1. I think this is done so that if it's certain they can't get the financing for 2 they will then try and get it for 1. Otherwise why would they keep the rendering for 2 up on the site? I don't think there is any reason for us now to lose hope.

I think on the website they just called the new rendering "Catalyst 1" because it's the first picture in the series. The subsequent pictures are "Catalyst 2," "Catalyst 3" etc.

[Paule]

Well that really wasn't my whole point. The major point is, if this new rendering is the new proposal and the old rendering is of a proposal that has been cancelled, why are they keeping the old rendering up on the site?

You have to remember that the rendering for the very first proposal is no longer pictured on the site. Why, because that proposal was cancelled.

[Milwaukee, WY]

This project is officially dead. :ohno:

Catalyst Dead

From the JS:

Ghazi's Catalyst project at 4th and Wisconsin dead (http://www.jsonline.com/blogs/business/49636722.html)

[miltown]

This project is officially dead. :ohno:

It was only a matter of time... lets hope in a year or two this comes back better than ever...