SHEBOYGAN – In January, three developers submitted proposals to buy land owned by the Sheboygan Area School District.
This month, the SASD board authorized school administrators to pursue the $3 million sales offer from Froedtert Health and Medical College of Wisconsin, a nonprofit organization.
The 25-acre property between Saemann Avenue, Geele Avenue and North Taylor Drive, across from the Field of Dreams sports fields, is currently vacant.
Froedtert proposed building a comprehensive hospital and senior housing on the land.
Froedtert’s development would include memory care and create an estimated 300 jobs
The purchase price and clarity of the proposal made Froedtert’s offer stand out, said school board President David Gallianetti.
North Taylor Development, LLC, offered to buy the school district property for $1.6 million to build senior living facilities, and Continental Properties Company, Inc., offered to buy it for $500,000 to build multifamily apartments.
Froedtert and the Medical College of Wisconsin offered the highest price for the land, which had been appraised at $3 million, Gallianetti said.
Froedtert would not use tax increment financing to fund the project, and although the organization is a nonprofit, would make the property a taxable development, Froedtert representatives said.
The development would generate about $1.8 million in tax revenue per year, estimated City of Sheboygan Director of Planning and Development and Sustainability Coordinator Chad Pelishek.
Froedtert’s proposal also stood out because — in contrast to the proposal from North Taylor Development, LLC — the proposed senior housing component includes memory care services, Gallianetti said.
“Those are needs that our community has, and those needs are met by this proposal,” Gallianetti said.
The number of people in Sheboygan County older than 60 has grown 33% between 2010 and 2020 and is forecast to grow another 10% in the next five years, Froedtert representative Ryan Marks said in a presentation to the board.
Froedtert proposed building a three-story health care facility with a 24/7 emergency department, imaging services, lab services, a pharmacy, surgery center and medical offices for primary care and specialty doctors.
Froedtert already has some doctors practicing in Sheboygan, but needs more space for them, Marks said.
“We’re bringing home a group of physicians that have practiced in the Sheboygan market for a long time, in a world-class facility that provides an academic-based approach to medicine,” he said.
To the north and east of the hospital, Froedtert would build between 120 and 154 independent and assisted living apartments, including a 20-bed memory care unit and 24 to 34 townhome-like options.
Project representatives estimated the rent for independent living apartments at around $1,680 per month, with assisted living apartments starting at around $5,250 per month and memory care starting at around $6,000 per month.
The development would create between 450 to 600 construction-related jobs and about 300 permanent on-site jobs, including 250 jobs in the health care facility and 50 jobs in the senior housing component, according to the proposal.
If Froedtert buys and successfully re-zones the property, the organization plans to start construction in early 2023 and finish in mid-2024, representatives said.
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A public input session is the next step
The school board will schedule a public input session to discuss the purchase agreement and Froedtert’s proposed use of the land after it receives an official offer.
The public input session will ideally be in April and will be in the commons at North High School, Gallianetti said.
Anyone from the community can come, and the school board will send invitations to people who live in the neighborhood surrounding the land for sale.
At the session, the school board will present the offer received from Froedtert, Froedtert will have an opportunity to present to the community and members of the public will be able to ask questions and make comments.
The school board will then decide if more input is needed or if there are specific concerns that need to be addressed, Gallianetti said.
Updates will be posted at www.sheboygan.k12.wi.us/rfp.
Reach Maya Hilty at 920-400-7485 or MHilty@sheboygan.gannett.com. Follow her on Twitter at @maya_hilty.