Carolyn Fath
Bob Dunn is seeking more than $40 million in subsidies to build a $200 million development at Judge Doyle Square.
But his LLC currently owes the city more than $312,000 in back taxes, including more than $25,000 in interest and fees, on his last controversial development, the Edgewater Hotel. His LLC also owes a smaller amount, $2,548, on a separate piece of the property, which is likely a common area of the condo section of the building.
The Edgewater was the cause of a bruising development fight that dragged on for years and still resonates with many residents. It pitted historic preservationists and neighborhood groups against pro-development advocates. It likely played a role in the 2011 mayoral election, when Paul Soglin unseated Dave Cieslewicz, who championed the project.
The hotel renovation cost roughly $100 million. Last month, the Wisconsin State Journal reported that J.H. Findorff & Son and 15 other companies had filed liens against the hotel totaling $23.7 million.
Dunn hasn’t paid real estate taxes on the property since March 31. Dave Gawenda, the city’s treasurer, says that if the taxes aren’t paid by Sept. 1, the owner is issued a tax certificate, and the account is turned over to the county for enforcement.
“When that certificate becomes two years old, on Sept. 1, 2017, the county could take deed to the property,” says Gawenda, who used to be Dane County treasurer and is familiar with the process.
The county rarely takes over properties, he adds. “If there’s a mortgage on the property, the lender would lose rights on the mortgage,” he says. “So usually the lender to protect their rights would step in to pay the back taxes.”
Dunn could not be reached for comment on Wednesday.
Despite Edgewater’s financial troubles, Dunn is asking for even more money from the city to help finance the Judge Doyle Square project, which includes a hotel, office space for Exact Sciences, 1,250 parking spaces, retail, a fitness club and a bicycle center.
City investment in this project is expected to top $60 million.
Ald. Mike Verveer was not aware Dunn owed money on the Edgewater and is unsure how it might affect negotiations over Judge Doyle Square.
“It’s concerning,” he says. “I’d definitely like to learn more information about any back taxes owed. This is the first I’ve heard of it. It has not come up in our Judge Doyle Square discussions.”
He adds that the liens on the hotel have been raised in discussions, with concerns about the developer’s “ability to secure a contractor and subcontractors from our community, given their tight timeline.”
Update: Dave Gawenda, the city’s treasurer, says that the Edgewater Hotel paid all of its outstanding real estate taxes on July 16, the day after this story was posted.
