Development Agreement Approved for More New Housing

A development agreement for building a 68-unit apartment project next to the Cherry Point Mall in Tax Increment District #6 was approved June 7 by the Sturgeon Bay Common Council.

City Administrator Josh VanLieshout said the agreement between the city and Fire Lane Rentals formalizes the terms negotiated between the two parties for the developer to also approve.

“Barring any material changes, we’re going to have a development agreement in place for more housing in the City of Sturgeon Bay,” he said.

Marty Olejniczak, community development director, said the agreement states all the things the council required when it approved a planned unit development (PUD) for the project, as well as the sale of a city-owned lot at 1048 Egg Harbor Road to Fire Lane Rentals to develop what will be known as Cherry Tree Terrace/Apple Tree Terrace.

“It’s really just the things that were already talked about as this project progressed,” he said. “But because there’s so many things floating around – saying we’re going to build a road back there with [tax increment financing] dollars and so forth – it made sense to get it all into one document.”

The agreement calls for the project to generate a minimum assessed value of at least $3.4 million by Jan. 1, 2026, or else the developer would have to make up the difference in the amount of property taxed between $3.4 million and the actual assessed value.

District 4 Alder Spencer Gustafson said people in the city are excited to see additional housing.

“We have Tall Pines [Estates] next door, but this just adds to it,” he said.

With the city committing in the development agreement to acquire additional right-of-way and pay for the construction of a public street that connects the end of Alabama Place with the end of North 12th Place, the council also approved buying approximately 1,660 square feet of land on the northwest corner of the Cherry Point Mall for $7,500.

Olejniczak said the purchase from Moonlight Capital, the mall owner, is based on $1,000 for the land, $6,000 for four lost parking stalls and $500 for the utility easement to the underground electric line.

Mayor David Ward said the mall was “very cooperative” in working out a sale for the property.

“I think $7,500 is a remarkable price,” he said. “I shouldn’t say that out loud.”

The council scheduled a possible closed session to discuss the purchase, but it remained in open session to approve it.