The city of Sheboygan is planning an initiative to redevelop 108 acres of land south of its downtown, including the former Pentair property and areas along the Sheboygan River, using $32 million in public financing.
[caption id="attachment_166527" align="alignright" width="342"] This former Coakley building in Sheboygan is being redeveloped into 122 apartments, and is within the proposed TIF district..[/caption]
Next month, the Common Council will consider the proposed $32 million tax incremental financing district that would be located from South 14th Street on the west, along Indiana Avenue extending to Lake Michigan.
The development that could occur over the 27 years of the TIF district could create 75 jobs and $64 million in new development and redevelopment, according to city documents.
The district would include the 15-acre former Pentair Inc. site at 502 Indiana Ave., which is currently owned by Blue Harbor Resort.
Pentair closed its Sheboygan plant in June 2009, eliminating about 350 jobs. The Pentair buildings have been demolished and the site has been cleared and vacant since, said Chad Pelishek, director of planning and development for the city of Sheboygan.
“After the market collapsed, Blue Harbor bought it as an investment, but they may not be the final developer," Pelishek said. “We’re working with the resort on possible redevelopment of that property."
The Pentair site includes 1,400 feet of Lake Michigan frontage. Pelishek said he would like to see a mixed-use development at the site or a corporate headquarters.
“It is one of the last jewels on Lake Michigan,” he said.
The TIF district, which will be considered by the city's plan commission this week and the council in August, would pay for infrastructure improvements, a parking structure, façade renovations to existing businesses and possible development incentives.
The city has demolished the former J.J. Koepsell multi-story manufacturing building, 1010 S. Ninth St., and several other buildings near Sprecher's Pub, 820 Indiana Ave. It plans to create an "innovation center" as part of the TIF district, Pelishek said.
Phase one would include a 30,000- to 50,000-square-foot building that would house businesses, higher education uses, entrepreneurs or non-profits. A parking structure would also be built.
Pelishek said more details about the innovation center will be released in coming months.
Included in the district is also a 122-unit workforce housing apartment development at several former Coakley warehouse buildings. The 250,000-square-foot project is being developed by Carmel, Indiana-based KCG Development.
A developer agreement for the apartment complex is currently in the works, Pelishek said.
Pelishek said the entire area is a rehabilitation district and the TIF would allow the current commercial businesses to be enhanced.
“What we are trying to do is create an urban business park,” he said. “There are many infill opportunities around the district and we are aggressively working with interested developers.”