City of Sheboygan makes movement on Gartman farm redevelopment that could bring 2,000 housing units

TOWN OF WILSON — The city of Sheboygan is a step closer to developing the former Gartman and Poth farms into a housing development, following a Finance and Personnel Committee meeting Dec. 11.

The committee entered a pre-development agreement with Pelton Builders, LLC to develop 274 acres of land, essentially securing an exclusive partnership while the developer works to explore future plans for the project and return with a proposal for Common Council.

If accepted, the pre-development agreement would be in effect until Dec. 31, 2024. Both parties are still negotiating a development agreement.

Sheboygan bought about 195 acres of land east of Moenning Road from the Gartman family for $3.67 million in 2022, later annexing it from the town of Wilson. In April, the city leased 193 acres of land back to former owner David Gartman for agricultural purposes. The deal ends in March 2024.

The city owns 73 acres of the former Poth farmland adjacent to the Gartman land that will be incorporated, too. The land has been under city ownership since 2000. About 30 acres have been leased out to Gartman for several years.

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The Sheboygan area is grappling with a housing shortage, an issue that public and private entities are working toward addressing.

City Administrator Casey Bradley said at the meeting the city is looking to build a minimum of 2,000 housing units on the property. There will be a mix of affordability in the area, with opportunities for small-scale retailers.

“Hopefully (it will be) a self-sustained neighborhood that they (residents) could have a lot of their shopping and amenities right there in that 270-acre farm,” Bradley said.

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Pelton Builders has expertise with single-family and multifamily housing, developing more than 600 apartment units and 60 homes, Luke Pelton said.

“We really like the area of Sheboygan. I think there’s a huge, huge need for housing, and we’d like to help in any way we can,” Pelton said.

He said Pelton Builders doesn’t have previous experience with commercial spaces but intends to partner with local builders.

UWM students expected to participate in the project's master plan

Pelton Builders, LLC, will work with University of Wisconsin-Milwaukee students on the master plan for the farmland, too. Architecture students completing their capstone projects for graduate school will work alongside city staff and the developer.

“That essentially creates the guide on how it will be built out. We’re trying to look at gauging density, obviously market absorption is going to affect that,” Bradley said.

From previous work with Pelton in Baraboo, Bradley said this has looked like shifting the number of one-, two- and three-bedroom units offered in an apartment development based on what's popular on the market.

The master plan would go before the Common Council for approval. Students will not be paid but will earn class credit.

Bradley said the partnership is financially advantageous.

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Redevelopment supported by TID, Capital Improvement funds

The city intends to create a TID for the redevelopment project, according to the pre-development agreement.

There is also funding set aside through the 2024-2028 Capital Improvement Program's affordable housing fund: about $2.1 million for the acquisition paid across 2024-2026 and $3.5 million for the single-family housing development paid across 2025-2026.

The city paid $900,000 at closing and $693,750 toward the payment of the land acquisition this year.

Contact Alex Garner at 224-374-2332 or agarner@gannett.com. Follow her on X (formerly Twitter) at @alexx_garner.

This article originally appeared on Sheboygan Press: Sheboygan enters pre-development agreement for housing project