By Kevin Boneske
Staff Writer
ASHWAUBENON – Approximately 6.5 acres of property owned by the village’s Community Development Authority along Mike McCarthy Way could be redeveloped with an urban, walkable, mixed-use project.
The CDA and the village board recently both backed a six-month planning option for Merge Urban Development Group, which has been redeveloping properties in Wisconsin and Iowa.
The option is for Merge to determine whether its proposal would be feasible to construct up to five buildings, plus townhomes and parking, for commercial and residential use, and include an office and a hotel.
Merge responded to a request for proposals put together in May by village staff for redeveloping the site consisting of 2.5 acres on the south side of Mike McCarthy Way and another 4 acres on the north side of the street just east of where the village previous approved plans for the construction of a Cambria Hotel with 100 units and four stories.
Community Development Director Aaron Schuette said Merge’s proposal meshes with the village’s comprehensive plan, urban design guidelines and site plan requirements for this part of the village.
According to Merge’s proposal, which estimates the overall cost at more than $57 million, the project would be built in phases.
Phase one – which would include two buildings, four to five stories each, on the north side of Mike McCarthy Way with a total of more than 150 residential units and nearly 30,000 square feet of commercial space – is estimated to cost more than $30 million.
“The cost estimates and budget provided are based on similar developments we are constructing across the Midwest,” states Merge’s proposal.
Merge’s full proposal calls for 225 residential units, a boutique hotel, a four-story office building, townhomes and parking shielded from sight by the buildings.
However, Merge stated it would determine whether to proceed with the second and other subsequent phases based on the village reaction to the program, viable hotel users, office needs, etc.
“In the near term, this project solves a housing need by driving more millennial engagement with Ashwaubenon and providing housing options for empty-nesters,” the proposal states. “The design is sensitive to the area’s industrial past and the building materials are tough enough to ‘fit’ within the area today and remain relevant as ‘Main & Main’ becomes more established.”
A development agreement would have to be approved between Merge and the village for the project to proceed, and the company has requested Tax Incremental Financing or an upfront incentive to be negotiated in the agreement.
“Our budget assumes a $1 purchase price for land and $50,000 in acquisition-related expenses,” Merger’s proposal states. “Further, our team requests a coordinated effort between Merge and village staff to pursue grant funding…”
Merge’s timeline calls for starting the first phase of construction next summer with the estimated time to finish each building being 12-18 months.
Should Merge decide not to pursue the project after the six-month period to complete its due diligence, Schuette said the village would seek another company interested in developing the property.
Schuette declined to discuss other companies that responded to the village’s request for proposals.