Development Agreement Approved for Apartment Project

The Sturgeon Bay Common Council approved a development agreement April 4 for a three-story, 22-unit apartment building planned at 1361 N. 14th Ave., the site of a former cherry-processing facility near Tadych’s Marketplace and Walmart.

Estes Investments, which is developing the apartment building fronting 14th Avenue, along with 12 storage buildings in the rear, previously agreed to the following conditions: 

  • Estes would be responsible for the design of the sewer/water extensions to the property.
  • The city and Sturgeon Bay Utilities would seek approval for the extensions through the Wisconsin Department of Natural Resources.
  • Estes would bid and contract for the construction of the mains, subject to city approval of the final bid amount.
  • Estes would construct the apartment building after receiving all necessary zoning approvals and building permits.
  • Upon issuance of an occupancy permit for the apartment building, the city would reimburse Estes for the installation costs of the sanitary sewer and water mains.

City administrator Josh VanLieshout said the city intends to use American Rescue Plan Act (ARPA) funds to pay for the utility extensions. The bid amount for constructing the mains came to $166,891, compared to the city engineer’s estimate from last fall of $163,000.

This drawing shows the layout for Estes Investment to construct a 22-unit apartment building at 1361 N. 14th Ave. with 12 storage units in the rear. Submitted.

“Those improvements will likely be special assessed as well under the city’s assessment policy,” he said.

VanLieshout said the utility extensions could also benefit any future development farther north along 14th Avenue, such as where there is vacant land on the street’s east side.

District 4 alderman Spencer Gustafson said that extending sewer and water along 14th Avenue is a good use of ARPA funding.

“There are very few things we can actually use it on,” he said. “We’re tying it to housing, so I think that’s the best we can do in this situation. I think we’re going in the right direction with the ARPA funding with all the restrictions.”

Based on a future assessed value of $2.2 million, community development director Marty Olejniczak reported to the council that the apartment building would generate about $17,500 annually for the city’s portion of the property taxes.

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