Although some real estate industry professionals and observers in Milwaukee have assumed that the proposed Rivianna project is dead, Bob Schultz, the project's developer, says he is making progress and hopes to break ground near the end of the year. "It's not dead," Schultz said. Rivianna is a proposed $82 million development, with three 17-story towers. It would be built along the Milwaukee River, east of North Young Street and South Water Street, just south of the Historic Third Ward. The development would have a 62-room hotel, 193 residential units and about 20,000 square feet of retail space.

The project has been delayed because of difficulties obtaining financing. The collapse of the national housing market has resulted in a credit crunch that has made it very difficult for developers to obtain financing for major projects. "It's been brutal out there," Schultz said. However, Schultz said he has received a letter of intent from a union pension fund for $13 million in equity financing. He said he plans to obtain $6 million in "primary equity" in "various forms" and is also hoping to obtain a $65 million construction loan.

The key to the financing package will be selling the hotel portion of the project to a hotel owner/operator, Schultz said. "The hotel has to be sold," he said. "There's no doubt about it." Schultz said he is planning to offer the residential units for sale or for lease to own, and he does not think any pre-sales for the residences will be necessary to obtain financing.

Schultz obtained re-zoning for the project, and is in the process of receiving final design approval from the city. The project has been redesigned with a much more glassy appearance by Madison-based Dimension IV Madison Design Group. Construction could begin by the end of the year, Schultz said. "We could possibly break ground by the end of the year," he said. "Probably by the end of the year or early next year."

Schultz said the project will provide numerous "community benefits," including affordable housing units and union workers for the construction project, without a subsidy. "It's a fair market project, like fair market coffee," he said. "We're all in this together and you try to (have a project that) raises the entire (community's) boat."

Although the construction project began in April, a groundbreaking ceremony will be held today for a three-story, 82-room Sleep Inn & Suites hotel, which is being built on a vacant lot at 4600 S. Sixth St. The hotel is expected to open in early 2009. About 25 people will work there.

The site is about 1.5 miles from the west entrance to General Mitchell International Airport, and about half a mile from Interstate 94. Several new hotel developments have been proposed for sites near the airport in recent months. This is the first of those projects to break ground.

Some of the units in the hotel will be suites with separate sleeping and living room areas with refrigerators and microwaves. The hotel will also have a meeting room for groups of up to 35, high speed wireless internet access, an indoor swimming pool, a whirlpool a fitness center and breakfast service. In addition, the hotel will have additional parking available for guest to use "park and fly" overnight packages.

Sleep Inn is a division of Silver Spring, Md.-based Choice Hotels International Inc. The hotel is being developed by West Bend-based American Design-Build and North Liberty, Iowa-based Kinseth Hospitality Companies. "We believe the hotel will be very successful given the continued growth in the commercial and industrial businesses located in the southern sector of Milwaukee," said Kraig Sadownikow, president of American Design-Build.

American Design-Build and Kinseth, a hospitality management company and ownership organization, recently opened a Hampton Inn & Suites hotel in West Bend and are working on hotel developments in Grafton and Madison.

The Sendik's store that is part of the Shoppes at Wyndham Village development, under construction southeast of Highway 100 and Drexel Avenue in Franklin, is scheduled to open on July 9.

The 250,000-square-foot multi-tenant retail development, which also includes a Target store, scheduled to open on July 23, is being built by Franklin-based Mark Carstensen Construction & Development Companies Inc.

Last year a Sendik's store opened at the Fountains of Franklin development at West Rawson Avenue and South 51st Street.

Johnson Insurance Services, part of the Johnson Financial Group, plan to open a regional service center at 13303 Washington Ave., Sturtevant. The company will lease 10,500 square feet of office space, which will house 50 employees. The new location will serve as a processing and service center for Johnson Insurance Services' commercial property and casualty lines and employee benefits staff. "This location gives us access to the highway - we want our agents to be able to find one central spot to meet with their service reps," said Christian Lie, president and CEO of Johnson Insurance Services. "And our service people occasionally meet with clients."

Five to six of the 50 employees who will work in the new Racine service center will be new hires, Lie said. The remaining staff will be brought in from the company's other centers in downtown Milwaukee and downtown Racine. The company already has regional service centers in Green Bay, Madison, Eau Claire and Janesville. The company has more than 200 employees in Wisconsin and Arizona. "We continuously look for ways to do more for our clients and focus on delivering the highest level of service," Lie said. "This new location serves as our commitment to our clients in southeastern Wisconsin and to Racine."