Port aims to sweeten deal for owners of development sites in city

Port Washington officials are focused on attracting new development as a way to increase the community’s tax base and bring in needed workers for city businesses, with Mayor Ted Neitzke and City Administrator Tony Brown visiting the owners of large tracts of land on the city’s perimeter to see what it will take for them to build.

The answer — infrastructure, specifically, sewer and water lines, at their doorstep, Neitzke told the Plan Commission last week.

While that’s likely a multi-million-dollar cost, especially for some areas outside the city boundaries, it may be worth the cost in order for the city to grow, he said, adding that developers would reimburse the city for the cost when they hook into the utilities.   

“I believe if the city does not put infrastructure in, developers will just sit and wait,” Neitzke said. “The first thing they say is, ‘If we had water and sewer, we’d build today.’

“What we learned is they all have a plan and they’re waiting for conditions to change around their property. If the city can lay the pipes, they don’t have to wait 10 years, even five years.”

Development can’t occur without city sewer and water, he said, noting the Common Council recently made that part of its code.

City staff members have been charged with studying the cost and logistics of extending utilities to many of these properties, given that budget time is approaching, Neitzke said.

A key part of the equation is the pay-back period. Neitzke said the infrastructure would be put in by the city, but when developers hook into it, they would have to pay their fair share of the cost.

Neitzke said the city is ripe for development, noting there is a need for both housing and workers in the community.

He has talked to numerous business owners in the city who have told him they can’t find workers, Neitzke said.

“Our local employers are begging us to put in housing” he said. “This is a desired place to be. People want to live here.”

Last year, he said, the city grew 3.89%, more than other Ozaukee County communities and exceeding the state average.

“If we do that every year for a decade, that gets us up to 17,000 people,” he said.

Port, he added, is in the center of the “perfect commuter range.” Studies have shown that commuters are willing to travel about 25 miles to and from work, meaning someone living in Port could work from Sheboygan to Milwaukee to West Bend.

“If we have an inventory of homes, they’re going to be willing to drive that 25 minutes,” Neitzke said.

But right now, there aren’t any available houses.

Neitzke said that the city is looking at attracting residential development, perhaps with some commercial uses sprinkled in, on the south and west sides and a blend of business and residential uses on the north side.

He said he would like to see a mix around the city of about 50% affordable, small to mid-sized housing, be it for entry-level workers, empty nesters and retirees or others. That mix could include multifamily housing and apartments, he said.

He would also like to see 30% of the housing be medium to large homes and 20% higher-end homes.

Members of the Plan Commission said they would like to see mid-density development for much of the land, saying it would fit the character of the city and provide the type of housing needed today.

Neitzke said the city is looking at ways to ensure it gets the development it desires, especially if it extends utilities to make it happen.

The city does have some control through its zoning and master plans, he said, as well as through the approval process.

“We would look at every control point we have,” he said, including whether a development agreement linked to the utilities can spell out what can be done on the property.

“We’re going to be very protective of the lakeshore and expect that any development be connected to the community,” he said.

Neitzke said he and Brown have met with about five of the owners of some of the largest tracts of land on the city’s north, south and west sides — some of whom attended the commission’s meeting.

“We haven’t started negotiations on anything,” he said.

But, Neitzke said, they shared their vision for the land and found agreement with the landowners.

“The majority of the land owners on the north and south sides are local people, people who have articulated a strong commitment to the vision we have presented,” he said.

Neitzke said that the idea of a community installing the infrastructure to attract the development it desires is becoming more common, pointing to a similar pattern implemented successfully on Sheboygan’s south side and in Oostburg.

One benefit to having the community install the infrastructure, Neitzke said, is that it would eliminate the need for a TIF district — something he said he prefers since the payback on a TIF district would likely be longer.

Bob Harris, the city’s director of planning and development, also noted that since much of the development the city is looking for is residential, it would likely not qualify for TIF funding.

Neitzke said he doesn’t have a definitive timetable for any utility extension, but said it would be done in an orderly fashion.

“We want to make sure we’re taking a balanced approach so we aren’t overwhelmed,” he said.

It’s likely that the city would initially extend utilities on its south side, Neitzke said, since the water tower there has been sized to accommodate development and a new lift station was installed when Brookfield developer Vincent Kuttemperoor approached the city with development plans decades ago.

Ideally, Neitzke said, city staff members would come up with plans and cost estimates for the utility extension by late this year so in spring officials could begin talks with landowners. Work could potentially begin in 2024, with landowners moving ahead with developments the following year.

“It’s pretty aggressive,” he said of his timeline.