Developer looking to get out of agreement with city

Undeveloped land would revert back to city under proposed amendment

The developers that had been planning a medical residency training center in Shawano would be removed from a development agreement with the city, under a proposed amendment to the agreement tentatively approved Wednesday by the Common Council.

The amendment also calls for RTC Real Estate Holdings, LLC to give up any claim to the undeveloped portion of the property, which would revert back to the city.

RTC would be replaced by a separate company, Engle Drive Holdings, LLC, which is the company that actually built the existing 22-bed assisted living facility that had been intended as the first phase of the RTC project.

Assistant City Administrator Eddie Sheppard said the amendment, which was proposed by RTC, still needs to go through some changes even though the council “substantially” approved it after coming out of a closed session discussion.

“The motion (Wednesday) night was to approve the amendment and authorizing staff to make changes discussed in closed session,” Sheppard said.

Sheppard said the goal of the arrangement is for the city to ultimately take back the undeveloped land and continue to foster an agreement with Engle Drive Holdings.

The undeveloped land includes three lots totalling 34 acres.

The assisted living facility sits on an adjacent 5-acre parcel.

“The amendment essentially replaces RTC with Engle Drive Holdings for the five acres, and then gives the city the remaining land back,” Sheppard said.

Sheppard said he would be taking the city’s proposed changes to the amendment to RTC and finalizing an agreement that would likely be back before the council next month.

“It’s really in the middle of negotiations at this point,” he said.

The development agreement with RTC was approved in November 2016.

It called for RTC to construct a 45,000-square-foot medical clinic in three phases, with the first phase completed by January 2018.

The residency training hospital was expected to be up by January 2020.

Four 12-unit apartment buildings were expected to go up in 2019 and 2020, with 48 units of additional apartments and/or senior assisted living beds by January 2023.

The last phase of the medical clinic was to have been completed by January 2026.

The city had expected to issue a municipal revenue bond of $2.5 million on RTC’s behalf once the early phases of the project were completed.

“They just haven’t been successful at completing the work, at completing the development on schedule, nor do they have a future schedule that looks like there’s a reasonable expectation of them being successful at it — at meeting the obligations of the development agreement,” City Administrator Brian Knapp said in an interview Wednesday.