In 2007, a new proposal was gaining momentum to redevelop the former Grocery Bag lot in downtown Green Lake.

The building was torn down that year, and the city issued a conditional use permit for a new, multi-level structure that would include a wellness clinic and a handful of condos.

But construction never began.

Then, in November 2009, the Common Council approved a $250,000 developer’s agreement.

It stated the city would loan the developers a quarter-million dollars through the State Trust Fund Loan Program, to be re-paid via tax incremental finance (TIF) dollars generated by the increase in property value.

Development plans “consist of a retail/commercial space on the ground level of the building, with four residential homes on the second level and two residential homes on the third level,” the agreement stated.

But still, nothing happened to the vacant lot.

Now, this week, Green Lake city leaders were told the project has been cancelled.

City Clerk Barb Dugenske shared the news at the Common Council meeting Monday. She said the developers informed her the project was dead.

This prompted city leaders to refund more than $20,000 in impact fees to Village Condominium Developers. Impact fees are paid to connect to the city’s infrastructure.

Meanwhile, the developers were never given the $250,000 loan because they never signed the development agreement, Dugenske said. Developers listed in the agreement included Jack and Thomas Giombetti, and Robert Dudzinski.

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