Bank gives up on Cedar Vineyard, launches its own plan

The bank that owns 240 acres of Lake Michigan bluff land on Port Washington’s far south side has given up on the long-stalled Cedar Vineyard subdivision proposal and is working on a development plan of its own that would include homes and possibly a sprawling nature preserve.

Waukesha State Bank plans to split the land into three parcels. On the east side of Highway C, the 79 acres north of Cedar Gorge is being planned for a development with the southern 131 acres sold for either development or conservation — the Ozaukee Washington Land Trust is one of two entities looking to acquire the parcel, Keith Van De Laarschot, the bank’s commercial business development director, said.

Tom Stolp, executive director of the Ozaukee Washington Land Trust, said the group is interested in buying the land and seeing it preserved, noting it includes environmentally important areas such as Cedar Gorge, the Lake Michigan shore and the Clay Banks.

“This would be the biggest conservation project undertaken by the Land Trust. It’s a once in a lifetime Lake Michigan land protection opportunity,” Stolp said. “We want to see that land protected and open to the public. 

Van De Laarschot said the bank has also accepted an offer to buy the remaining 30 acres on the southwest side of Highway C to a buyer who plans to build a house and horse barn there.

When asked if the bank’s plan marks the end to the Cedar Vineyard proposal, Van De Laarschot said, “I’ve learned to never say never. We think Tom (Swarthout of the Highview Group, which planned the Cedar Vineyard subdivision) has got a great plan. But he hasn’t been able to close on it.

“We think it’s time to move on.” 

Swarthout’s plan, approved by the city in 2015, included houses, a 100-acre nature preserve, vineyard and winery as well as public access to the bluff.

Van De Laarschot said the bank decided to split the land into three parcels because they believe that selling it as a single lot wasn’t practical.

“For many people, it was too large a piece,” he said. “The infrastructure alone  on 220 acres is a big project. We were having trouble finding someone to take it on.”

So the bank decided to divvy up the land and hire Robert E. Lee and Associates of Green Bay to draft a development plan for the northern portion of the property, Van De Laarschot said.

Because that parcel is closest to the city’s sewer and water services, it will likely be the easiest to develop, he noted.

The firm is expected to complete its plan within 30 days, Van De Laarschot said, after which the bank will present the concept to the city for approval. It will then take the plan to developers in the hope of finding someone to implement the plan.

“If we have a plan that might work, it may make it (the land) more attractive,” he said.

Van De Laarschot said the bank hasn’t set any limits on the type of development to be considered, but said, “In my opinion, it’s probably most valuable as residential land.”

The city had created a tax incremental financing district for the Cedar Vineyard development, and Van De Laarschot said he does not know if a developer would require a TIF district.

“That’s part of what we’re hoping to determine,” he said. 

Port Washington City Administrator Mark Grams said that depending on the amount of residential property proposed for the site — Swarthout had proposed 33 lots on this parcel, he said — it may not qualify for a TIF district because it may not meet state requirements.

The land south of Cedar Gorge would be sold separately, and Van De Laarschot said the bank has two interested parties — a developer and a conservation group.

The land is near Lions Den Gorge Nature Preserve in the Town of Grafton, which was acquired by the Land Trust and is now owned by Ozaukee County.

The Land Trust is looking at a similar arrangement if it is able to acquire the land south of Cedar Gorge, Stolp said.

“This will enrich people’s lives. Lions Den is a hugely popular destination, and we think this has the potential to be an even bigger draw. People are very excited about it.”

Even if there’s a development next door, Stolp said, the land would provide an important natural area that would increase the value of nearby properties while benefitting wildlife and bird populations.

The property, he noted, is an important habitat along the migratory flyway.

It’s an ambitious plan, he said, one that would take a variety of funding sources to accomplish, including grants such as the Department of Natural Resources’ Knowles Nelson Stewardship Program as well as private donations.

The Land Trust plans to apply for a stewardship grant for the land in 2020, he said.

The Land Trust has had promising talks with Waukesha State Bank about the property, Stolp said, and is beginning its fundraising plans now.

It will likely take the group 18 to 24 months to get the needed funds together to buy the land, he said.

“It’s going to take $25 donations, $100 donations and thousands of dollar donations,” Stolp said.

The Land Trust and the county had been working with Swarthout in the Cedar Vineyard plan to create a large nature preserve in the midst of the subdivision.

Van De Laarschot said the bank has an accepted offer for the southwestern portion of the land, which would have housed a winery under the Cedar Vineyard plan, from someone who plans to build a residence and horse barn there.

He would not say how much has been offered for the parcel, but said the asking price was $449,000.

Grams, however, said it would be difficult to build a house on the property since there are no utilities in the area and it would be expensive to extend them there.

“We’re not going to approve a holding tank,” he said.

Grams said last week that Tom Swarthout of the Highview Group is continuing its efforts to purchase the property and develop the Cedar Vineyard subdivision.

“Everybody’s still working on it,” he said. “Everybody’s got frustrations with the project, but we still like the Cedar Vineyard plan.

“It’s a fit to our land use plan with a combination of residential and commercial uses and conservation areas.”

Van De Laarschot said the bank initially marketed the land for $18 million, thinking it would be either a good investment for a group such as a mutual fund because it is prime lakefront land or for development but found few takers. It dropped the price to $15.9 million about 18 months ago, he said.

He declined to say how much it was seeking for each piece .

“It might take us three different sales to get there,” Van De Laarschot said, “but that doesn’t mean that if someone comes in tomorrow and said ‘I want to buy it all’ we wouldn’t do it.”