Historical societies sue over firehouse donation

The Ozaukee County Historical Society was supposed to have moved the historic Saukville firehouse to Pioneer Village this summer, but the structure hasn’t budged despite the fact the group says it has already spent more than $100,000 on the project.

Organization leaders have been tight-lipped about the delay, but a lawsuit filed last week by the Ozaukee County and Saukville Area historical societies against the owner of the firehouse building at 200 Mill St. in Saukville tells a story of a project wrapped up in a legal dispute.

In its breach of contract suit filed in Ozaukee County Circuit Court on Nov. 5, the historical societies contend Dieter O. Zernikel reneged on his promise to donate the firehouse portion of the building, which constitutes the front of the structure, to the Ozaukee County Historical Society after he bought the property last year from the Saukville Area Historical Society.

But in an April 18 letter to the Ozaukee County Historical Society titled “Notice of no trespass,” Zernikel’s attorney, Michael Penkwitz, wrote that the donation agreement signed by his client “does not constitute a legal contract and is unenforceable for the removal of the front half of the building from my client’s property.”

After Zernikel purchased the property, Penkwitz wrote, he was informed by the structural moving company that it would have to cut into the back part of the building, which Zernikel intends to use, by as much as 10 to 12 feet.

“Before anyone from this point forward is allowed onto the owner’s property, the owner will require a properly drafted legal contract outlining the duties and responsibilities of each party,” Penkwitz wrote.

That contract, he wrote, must include a “structural and remedial removal plan” that, among other things, requires the Historical Society to restore the property and repair the front of the remaining structure after the firehouse is moved.

The contract must also include a deadline for the firehouse portion of the building to be moved, Penkwitz wrote.

“That if the structure is not moved by a final move date, or if the project is underfunded and stops for any reason past the final move date, that the structure will be deemed to be abandoned and, without the necessity of any court orders, that the owner shall have the right to demolish and remove said structure from the property at the Historical Society’s expense,” he wrote.

The Historical Society apparently got its first indication that a dispute was brewing 10 days before Penkwitz wrote his letter when members of the organization and its “team” met at the firehouse site and Zernikel “appeared with several other people and became confrontational ... causing them to remove themselves from the subject property,” according to the lawsuit.

At issue is a donation agreement signed by Zernikel on Oct. 14, 2025, just before he signed an offer to purchase the property, and Mary Ann Velnetske, president of the Ozaukee County Historical Society. The one-paragraph agreement calls for Zernikel to donate the front firehouse portion of the building to the Historical Society and states the Historical Society will be responsible for “all operations and costs for moving all or part of the firehouse, included but not limited to terminating all utilities at the time of the move, cleaning and removing of all debris associated with the building move.” It does not specify who is responsible for enclosing and repairing the back portion of the building that would be retained by Zernikel.

The agreement called for the building to  be moved no later than Aug. 1.

In its lawsuit, the Historical Society contends that because of the conditions Zernikel put on the donation, which were not included in the original purchase and donation contracts, it was impossible for the organization to move the structure by the Aug. 1 deadline.

Velnetske said during an interview Monday that while the Ozaukee County Historical Society was “excited” to sign the donation agreement, it did not draft the document, adding that it had raised enough money and was prepared to move the firehouse on July 27 but couldn’t because the donation had not been made.

“I don’t know who drafted it, whether it was the Realtor or if Dieter (Zernikel) had someone draft it,” Velnetske said, referring to the donation agreement.

Penkwitz did not return a message left for him Monday.

The Historical Society, which received $120,000 from the Saukville Area Historical Society from the sale of the property and has raised considerably more than that with its Ignite the Fire campaign, also states in its lawsuit that, based on the donation agreement, it proceeded with the project and has spent $106,384 on everything from building a new foundation for the firehouse at Pioneer Village and moving utility lines to hiring engineers and architects.

Plans to move and preserve the 1912 firehouse evolved from a decision by the Saukville Area Historical Society to dissolve and donate or sell its assets.

The Village of Saukville had the right of first refusal to acquire the property but waived that right as Zernikel’s plan to buy the property, use the back half of the firehouse building to store cars and automobile memorabilia and donate the firehouse portion of the structure came into focus.

In its lawsuit, the Ozaukee County Historical Society notes that Zernikel appeared at a June 17, 2025, Village of Saukville Board meeting in support of the village waiving its right of first refusal, and at an Aug. 19 Village Board meeting told officials about his plan to donate the front portion of the building and retain the back half of the structure in support of his request to have the property rezoned.

At about the same time, the Ozaukee County Historical Society was developing its plan to move the firehouse from the Village of Saukville to Pioneer Village in the Town of Saukville, where it would join its collection of other historical buildings on land owned by Ozaukee County.

The lawsuit filed by the historical societies asks a judge to issue an order requiring Zernikel to donate the firehouse without any conditions not enumerated in the original agreement and an order preventing Zernikel from damaging the firehouse property. The lawsuit also seeks monetary damages and the reimbursement of attorney fees.

The case has been assigned to Ozaukee County Circuit Judge Steve Cain. No court date has been set.

Velnetske said Monday that the Historical Society plans to move ahead with the firehouse project if it is able.

“We are still committed to moving the firehouse to Pioneer Village and keeping our commitment to donors,” she said.