What we know about a proposed 200-unit housing project near King Park

SHEBOYGAN — The city is pursuing a development that could bring more than 200 apartments to Sheboygan’s lakeshore.

Malibu Apartments, LLC, is proposing a two-phase development for apartments and a commercial space on an area of land near King Park referred to as "Kite Beach," a popular spot for flying kites and kiteboarding. It was the former site of Optenberg Iron Works, which went through various owners through the late 19th and 20th centuries, until shutting down in 2003.

The project has an assessed value of $40 million, according to a development agreement.

More than 200 rental units could come to the lakeshore

The developer is proposing a 210-unit complex: 29 studio, 70 one-bedroom, 12 one-bedroom with a den, 87 two-bedroom and 12 three-bedroom apartments. There'd be four floors and a lower parking level. There could also be a separate building with first-floor parking and a nearly 3,450-square-foot space for a restaurant on the beach.

Construction on the first phase, including the restaurant space, would have to start by Oct. 1 this year and the second phase by Dec. 31, 2026, according to the development agreement. The phases must be completed by May 1, 2026, and Dec. 31, 2027, respectively.

The city could create a new TID and pay at most $8 million through a non-interest bearing municipal revenue obligation to help finance the project.

City to reconfigure streets around potential development

Parking along South Seventh Street and Clara Avenue would need to be reconfigured, completed alongside the city’s sewer maintenance work. The city may also need to work on Georgia Avenue, depending on the final project plans.

Residents, visitors could still access Lake Michigan beach

Malibu Apartments, LLC, agreed to maintain beach access for the public, although there would be parking changes near the site, according to the city.

Contaminated land needs to be remediated

A previous developer attempted to transform the land into a housing development about 20 years ago, but the Wisconsin Department of Natural Resources determined the land was contaminated. The project didn’t move forward over several years of discussion with the department.

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The prospective developer has been in communication with the DNR’s Remediation & Redevelopment Program team, which was receptive to the land being remediated and redeveloped, pending more project details.

The Sheboygan County Planning & Conservation Department will be involved, too, partially supported by a $500,0000 Brownfield Assessment Grant from the U.S. Environmental Protection Agency, according to City Administrator Casey Bradley.

Development agreement needs Common Council approval

The Common Council was to have the chance to vote on the development agreement Feb. 5, following several reviews by city staff, department heads and the developer.

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