A group of alderman accused Green Bay Mayor Jim Schmitt of diverting city loan money, which they say violated the public trust during the Hotel Northland dispute.
Alderman Guy Zima was joined by colleagues Mark Steuer, Thomas De Wane, Chris Wery, and Andy Nicholson Monday afternoon.
A complaint brought forth by the councilors alleges Schmitt ordered project funds held by the city to be deposited into an unauthorized bank account of Keith Harenda, an owner of the Hotel Northland.
They went on to accuse Schmitt and City Attorney Vanessa Chavez of failing to disclose defaults in the city's 3.2 million dollar loan for the project.
The alderman said the defaults were caused by the diversion of funds.
The alderman said the mayor and his staff lied to the Redevelopment Authority and the Common Council, saying the $500,000 loan was intended to keep contractors working on the project. They alleged Mayor Schmitt intended the loan to be used for a buyout former owner Michael Frantz, giving Harenda 100% ownership of the project.
In a statement, Schmitt called the the complaint a misrepresentation by the council members.
"The allegations... reveal a deep misunderstanding of financing and banking," Schmitt said.
Schmitt pushed back against claims he sabotaged the Hotel Northland process, saying he "worked tirelessly with other lenders."
Chavez released a statement saying in part, "I am disheartened by the inaccurate and malicious statements made by Alderman Zima during the press conference Monday."
"We did not offer money to settle the private dispute between Mr. Harenda and Mr. Frantz," Chavez said. "Claiming that we did is an absurd spin on the situation."
Schmitt defended Chavez's conduct during the Hotel Northland process.
He said Chavez is "[an] advocate for the city and will work... to bring innovative development to our community."
"If not for these alder's obstructionist tactics, the Hotel Northland would have long been open by now," Schmitt posed.
NBC26 reached out to the District Attorney's Office Monday, but did not hear back by close of business.
