Mike Mathes, Tri-County News, 11/7/2019
Two Kiel developers were given the green light by the City of Kiel to purchase and develop a new residential subdivision between Rockville Road and the Sheboygan River. At its October 22 meeting, the Kiel City Council gave its approval to an developers agreement with Nash Estates, LLC, owned by Peter Kraus and Brian Meyer, for the new subdivision to proceed.
Under the developer’s agreement, Nash Estates plans to develop seven single family homes abutting the Sheboygan River, and overlooking the walking/biking trail with an estimated value of at least $325,000 each. Plans call for seven single unit condos with an estimated value of $280,000 each, and duplex condos (18 units) with an estimate of $250,000 per side. The developer’s agreement requires a minimum development of at least two lots per year.
Kiel City Administrator Jamie Aulik hailed the agreement as positive for the community in many ways. “Everyone knows we are short on residential housing in Kiel. This is a way to meet some of that need in the city, and doing it in a way that’s responsible to the taxpayers and gives incentives to the private sector to do what they do best.” The Nash Estates development will be zoned as a planned unit development.
Nash Estates agrees to buy the property for the subdivision from the City of Kiel for a price of $200,000. The developer will be responsible for contracting work for infrastructure in the subdivision, something they have already secured.
That aspect of the agreement has already paid dividends, as the infrastructure work was bid through the private contractors, saving about $200,000 in the process. The cost of the infrastructure, approximately $555,000, will be paid by the city under the veil of Tax Incremental District #4.
The developers will be responsible for covenants for the subdivision, and will be required to update the Kiel Economic Development Committee every six months on its progress. In the event the developers fail to develop the minimum number of lots or units over period of two consecutive years, the lots are given back to the city at no cost.
The requirements call for the developers to develop on an annual basis a minimum of two lots, two condo units, or a combination of one each. Overall, it is estimated that the new residential subdivision could add $8.8 million in property value to the city, based on current values.
For its part in the development, the city bears the responsibility of reasonable engineering fees, surveying, permitting and inspection fees for the project. The city will also pay for the infrastructure, as noted above, which includes roads, sanitary sewer, water, storm water, gas main construction, installation of electricity, street lighting, phone/cable main lines, topsoil for construction and modifications to a retention pond.
The city also has the responsibility of extending the walking path along the south side of Rockville Road, a project that has already been completed. The city’s investment in the subdivision amounts to approximately $350,000, when subtracting the purchase price from the cost of the infrastructure work bid by the private contractors.
One other component of the developer’s agreement requires that the city shall not provide financial assistance to any third party for the construction of new residential or commercial development in Duerwaechter Park for the remaining life of TID #4, or 2032, whichever is sooner.
This was done to allow Nash Estates to be developed without the city subsidizing another residential developer at the same time. The agreement does permit the city to sell land in Duerwaechter Park, however, to a third party who may consider developing the parcels at their own expense.
Aulik said the agreement was the result of months of collaboration, negotiation, hard work and compromise. “This has been one of the most rewarding experiences as a local official I have ever had,” he said.