This drawing shows the conceptual site plan to locate a marine services center south of a proposed multi-tenant industrial building along South Neenah Avenue in Sturgeon Bay’s TID #9. Submitted.
The Sturgeon Bay Common Council voted Tuesday to approve an offer to purchase approximately 5.15 acres of city-owned Industrial Park property fronting South Neenah Avenue.
The offer from 54235 Development involves a proposed marine storage and services center on a portion of the 17.8-acre vacant parcel known as the former Zak property the city purchased a few years ago.
The proposed project, as presented by 54235 Development agent Bill Schofield, involves a building for multiple marine vendors, such as for sail makers, located along Neenah Avenue and a large building east of there for storing and servicing boats.
“We aim to offer the yachting enthusiast a place he or she is comfortable taking their yacht to be maintained and protected to a like-new condition throughout the life of his or her vessel, as well as somewhere yachting enthusiasts trust to have their vessels stored when not in use,” Schofield said.
A third building on the far east of the purchased property has also been proposed for a later phase of the development.
City Administrator Josh Van Lieshout said the offer to purchase follows the standard city policies for selling lots in the Industrial Park.
Van Lieshout said property in the Industrial Park sells for $30,000 an acre, but that amount may be reduced depending on the number of jobs or amount of property value created.
Based on the investment credit 54235 Development is applying for, he said the net cost for purchasing the land would come to $51,500 at closing, or $10,000 an acre.
The company would pay $3,000 per acre in earnest money and an additional $7,000 per acre at closing, while the remaining $20,000 per acre ($103,000) would be mortgaged for three years and could be reduced or eliminated, subject to development credits.
Door County Economic Development Corporation Executive Director Michelle Lawrie, who works with prospective buyers of Industrial Park property as the city’s marketing agent, said the company’s application for an investment credit of $4,000 per $100,000 of investment is based on an $8-10 million estimated construction and equipment cost, and would satisfy the cost of the land limited to $10,000 an acre.
Van Lieshout said the sale includes the option for the city to repurchase the property in the event the project does not proceed.
Because the site is zoned Light Industrial (I-1A), City Planner/Zoning Administrator Stephanie Servia said marine storage would require a conditional use permit from the city’s Plan Commission.
In addition, Servia said the project is subject to Industrial Park development standards and requires approval from the Industrial Park Design Review Team.
The land is located in the city’s Tax Incremental District #9.Howard Immel, and the council, had previously agreed to shift Howard Immel’s proposed multi-tenant industrial building intended for the site to make room for the marine services center. That agreement included 54235 Development reimbursing Howard Immel for lost engineering expenses of $7,750.
