KAUKAUNA — The city of Kaukauna last month foreclosed on the long-dormant Dreamville Apartment project even as developers continue to seek financing.
The court action was first reported Friday by the Post-Crescent. READ
According to online court records the city filed its lawsuit July 18 in Outagamie County Circuit Court against Dreamville Kaukauna LLC’s parent company, Hope Housing Foundation and several related entities.
The lawsuit claims developers defaulted on their agreement with the city and owe Kaukauna $1.8 million in unpaid taxes, interest and loan principle.
City officials say the move is to protect the city and taxpayers, even as they continue to work with the developer on efforts to secure financing.
Preliminary site work and environment remediation began on the project in November 2022, but since then, building costs and interest rates have increased.
The development is located on the former Gustman’s car dealership site on the city’s north side.
Due to the rising costs of the project, the building underwent a series of value engineering changes to reduce costs, although the high quality finishings, façade and size of the project remain the same.
In March 2023, developers announced that Kaukauna’s Dreamville apartments would dedicate 75% of its units to workforce-rate housing after applying for a bond from the Public Finance Authority.
The $38 million project originally was going to be all market-rate units, but will now have 135 of its planned 180 units available to those making $55,000 or less.
The development would include two 5-story 90-unit apartments.
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