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Incentives Approved for Second Phase of Apartments Near Sturgeon Bay Target

Financial incentives totaling $330,000 related to the second phase of apartments being built north of the Sturgeon Bay Target store and south of Sawyer Drive (West Oak Street) were approved June 20 by the Common Council.

Community development director Marty Olejniczak said Duquaine Development of Green Bay plans to construct two buildings for the second phase – one with 26 units and the other with four units – with $286,000 provided to the developer for the larger building and $44,000 for the smaller one under the latest development agreement.

“You may recall in our [original] development agreement with Duquaine Development, as you get to Sawyer Drive, aka West Oak Street, we want smaller buildings – kind of a transition from the larger, multifamily buildings to the single-family homes that are on the north side of that road,” he said. “That would be a four-unit building that would front on the street.”

Olejniczak said Duquaine Development had previously entered into a development agreement and annexation agreement with the city for the first phase of the project with 68 units, and now it will add 30 units in the second phase.

This drawing outlines in red the 30 units being added during the second phase of Duquaine Development’s apartment project north of the Sturgeon Bay Target store. Submitted.

“The first building is complete,” he said. “The other two buildings that comprise that 68 units shortly will be completed.”

Olejniczak said the intention was for the first phase to take place while the property was still in the Town of Nasewaupee and then annex it to the city, with future phases taking place when the land is part of Sturgeon Bay. The city will now wait to annex the first phase, and it revised the annexation agreement to reflect that. 

“The reason for the delay in annexing the property is that the property values are not set until after Jan. 1 of each year,” Olejniczak said. “Therefore, the phase-one development will not be fully assessed until after Jan. 1, 2024, and hence, the property cannot legally be annexed at this time.”

He said the development agreement for phase two and the change to the annexation agreement will extend up to a year as to when the property could be annexed to the city. The development agreement states that construction of phase two “shall be substantially complete by Dec. 31, 2024.” 

Similar Per-Unit Incentive

Olejniczak said the development agreement for the first phase of the project included $750,000 in financial assistance for Duquaine Development. Based on the number of housing units, he said the second-phase assistance will be similar to phase one, at around $11,000 per unit.

Olejniczak said the financial assistance for phase two could come from the affordable-housing funds the city generated by extending the life of tax increment district #1 in the Industrial Park for a year.

He said that once the property is annexed to the city, the second phase of the development is expected to generate about $3.6 million in property value for an annual tax payment of about $28,000 for the city’s portion. Olejniczak said that based on that amount, the city would recoup the financial assistance in about 12 years after the property is annexed.