From Mary Beth Gaspar-Waite on Palomar Cancellation

The following is from Mary Beth Gaspar-Waite. Although she personally contacted every person that had purchased or was contemplating a purchase at the Palomar, she also put this message together for them. Mary Beth sent this to me so that I could share with you, the Spreenkler community--a group she admired after meeting so many of you last week. 

Please know that Mary Beth is authentic in her passion for the Milwaukee community and in helping people move their ideas forward. She is also driving several initiatives to strengthen the women's business network and support structures in the area. 

Since meeting Mary Beth in September she has been nothing but gracious and supportive. In every interaction she has proven to be a class act. Although the Palomar situation is extremely unfortunate, I'm positive Mary Beth and her team (Megan and Stephanie) will continue to thrive while supporting and creating new business opportunities and connections!

Steve Glynn

Dear Friends,

We are disheartened to inform you that Gatehouse Capital has permanently suspended its development plans for the Palomar Hotel & Residences in the Park East area of Milwaukee.

Since the opening of the sales center in May 2008, Buyers signed contracts totaling millions of dollars and put their hearts into the re-invention of a neighborhood.  Gatehouse Capital has announced several nationally recognized operating partners for the restaurant and spa, and have continued to advance drawings and constructions plans.  However, as the residential and credit markets have worsened to historical record levels, Gatehouse Capital attempted to obtain a higher level of assistance from the City – which unfortunately failed to materialize.

The approval of this funding, A Tax Incremental Financing package (TIF) would have allowed the project to continue.  The Palomar would have created over 600 jobs during the construction phase.   Once completed, The Palomar would employ 230 people in full time positions with benefits for the Hotel and community service operations.  We needed these jobs for the men and women of Milwaukee!   The hotel would have boosted tourism and convention business for the city and added an additional 175 rooms which in turn would have fueled dollars into local businesses.  Additionally the presence of the hotel, restaurant and spa would have helped generate business for local advertising and marketing firms by branding each of these unique companies which were all new to our community.  Finally, Kimpton hotels, dedicated to being a partner in Milwaukee’s long term progress, had set aside a large amount of funds to be given to local nonprofit enterprises each year.

The TIF request was all part of expanding and gentrifying the former Park East into an area we wanted to call The McKinley District.  Similar to the Historic Third Ward, arches, boulevards, plantings, children’s playgrounds and lighting would have created a better sense of place reaching several blocks South and North of the project.  Gatehouse has a powerful history of exactly this kind of neighborhood development. In Dallas, the company’s Victory Park project spurred more than a billion dollars worth of housing, retail and commercial development.  They saw potential in what this corner of Milwaukee could become, but the City’s last minute request to operate a union hotel- which was not part of our original agreement- compromised the economics of the project.

It is a painful loss for everyone concerned, especially in light of recent announcements by other local companies of job cuts.  In the final analysis, the project is simply impractical in this new business climate without a much larger assistance package from the city.

We thank you for visiting us throughout the last year.  If we can help you with your real estate needs, please feel free to contact us.  The Palomar website will be taken down within the next few days, along with the email addresses.  Please contact me at the phone number & email address below.

Thank you,

Mary Beth Gaspar-Waite

Metro Condo Connections

Cell: 414.213.5055

Fax: 414.906.9395

Comments

[Ryan Graves]

Mary Beth- I am sincerely sorry that this occurred. I too was very excited to see what this surge of capital and energy would do to an area and a city with so much potential for growth.

The downturn in the US economy has really hit home for me over the last few months with missing out on a huge travel opportunity at work, then my sister losing her job, and now this event (among many more).

Let me just say that your efforts, your passion, and your future drive towards improving this area have not and will not go un-noticed or un-effective. There will be large changes in this area because of efforts and groups like Spreenkler, ActionsTalk, and others.

Keep up the great work and don't let the economy burst or even slow the growth of your extremely passionate bubble.

Cheers.

[Gregory Tsalmed]

Mary Beth-I am sorry you missed out on the opportunity of earning fees on selling Palomar Condos, however I understand Gatehouse's decision here. Unfortunately, in my opinion, the arrogant and clearly innaccurate comments that eminated from this project from day one have offended many who had high hopes for the neighborhood.

Not only can Gatehouse be blamed for that attitude but I feel your comments highly offended many Milwaukeeans. Saying "buyers are racked and stacked", "there is tremendous activity in the upper end of the market", etc.. are not only offensive but self serving and, as proven by the failure-WRONG.

[Ryan T]

Ms Gaspar--Waite

I now see that many lawsuits have been filed in connection with the Palomar project and from the court filing records I see many comments about the lack of Condo sales which is in direct conflict with the claims you have been making for the better part of a year. Care to comment?