A $4 million city loan to create a north side hotel could face default

A $4 million city loan to create a hotel and conference center on Milwaukee’s north side could be facing default.

If developer Kalan Haywood Sr. is unable to repay the loan, the city could file a foreclosure suit—which would likely mean public ownership of the proposed project site until another developer buys it.

That scenario is based on a Department of City Development official’s comments to members of the Common Council’s Zoning, Neighborhoods and Development Committee at its Monday meeting.

The loan, to be paid off over 15 years, received approval from the Common Council and then-Mayor Tom Barrett in 2019.

Haywood’s investment group, HG Sears LLC, has used $3.79 million of the loan to pursue the planned conversion of a historic former Sears store, 2100 W. North Ave., into the 80-room Ikon Hotel and conference center.

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