KAUKAUNA — The new apartment and hotel project planned for Kaukauna’s north side remains on-track, Kaukauna Mayor Tony Penterman said today.
The Post-Crescent reported Monday that the city was in discussion with a new developer after the previous developer, Harvest Development, backed out of the project.
However that’s not exactly the case, Penterman said.
The investor group behind Harvest Development’s apartment portion of the project now is taking the lead and are forming a separate LLC, according to Joe Stephenson, Director of Planning & Community Development.
Harvest Development remains the lead on the hotel project.
Both projects remain in schedule, with a possible ground breaking for the apartments in May and for the hotel project at the end of summer all fall.
“Harvest Development has a number of projects in the works with the city,” Penterman said in a statement. “To devote more time to those projects they are letting another developer take over the apartments.”
The $30 million project on the former Gustman’s site on the north side was approved by the city council in August 2021.
According to the developer’s agreement with the city, if the company doesn’t complete construction on the hotel by Dec. 31, 2022, it won’t receive the full $2 million in incentive outlined in the agreement.
The development includes a 68-room Choice Hotel Brand Sleep Inn and Suites hotel and Edgewater Pointe, a 101-unit market-rate apartment complex.
The $30 million investment in the site was expected to have generated a guaranteed minimum assessed value of $15 million dollars per year through the life of Tax Increment District No. 8.
As is common on many downtown redevelopment projects, a TIF incentive (combination of a municipally-backed commercial loan and a developer cash incentive) was a critical part of bringing this development to Kaukauna, according to a city news release.
The creation of the TIF District included $1.6 million in city-backed loans.
The apartment complex features luxury amenities such as underground parking, enhanced security, pet-friendly units and amenities, high-end unit finishes, community room, and outdoor recreation facilities, according to the news release.
The five-story apartment building has views of both the downtown area and the Fox River and 1000 Islands Conservancy.
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