East-side business boom makes Grafton a ‘destination’

When the Citgo gas station was built in Grafton at the intersection of Port Washington Road and Highway 60 off I-43 in 1997, many residents thought it looked like a “well-lit island” against a backdrop of farm fields and forests, Village Administrator Jesse Thyes said.

That was before Target and Home Depot moved in kitty corner in 1999, Costco across the street in 2007, Aurora Medical Center next door in 2010 and Meijer down the road in 2014, and before national fast food chains populated the area, including McDonald’s, Starbucks, Qdoba and most recently Chipotle and Five Guys.

In May, the Plan Commission approved plans for a Chick-fil-a to be built where Office Max is and a Chase Bank branch where Charcoal Grill is.

The last two decades of growth have made the east side district a “significant destination” along the I-43 corridor, Thyes said, an achievement made possible by “a combination of market circumstances and conscientious efforts of the Village of Grafton.”

One major reason is Grafton’s location, with businesses able to capture north and south-bound traffic on I-43 and west-bound traffic on Highway 60 while also drawing shoppers from Grafton, Cedarburg and Port Washington, Thyes said.

“Inherently, there are significant traffic volumes associated with the two highways, which is an attractive aspect to any commercial development,” he said. “The continued growth of the community has also driven interest by national brands.”

To capitalize on the large flow of I-43 traffic and visitors to Ozaukee County, the Comfort Inn & Suites was built in 2001 near the district, with the Hampton Inn following in 2008, Thyes said.

“Grafton has continued to draw more visitors as we have developed into a full-service community with desirable amenities and services while retaining our small-town character and high quality of life,” he said.

He said the village markets itself to new development through its partnership with Ozaukee Economic Development and the Chamber of Commerce, as well as on its website, where the village boasts its “direct access to interstate highways,”  “diverse array of stores” and ability to “accommodate all sizes and types of commercial establishments.”

While the village markets itself, Thyes said, it’s been largely hands-off in attracting specific brands.

“We have historically taken a market-based approach by letting the development community propose projects,” he said, noting the village has “a simple, dependable development review process.”

Village President Dan Delorit agreed with Thyes on the reason for Grafton’s success.

“Grafton has had amazing growth because of our location proximate to I-43 and because we have a very good plan to grow,” he said. “When you have constant population growth and a great location, businesses want to locate in your area.”

The village’s goal for growth is building a “high-quality, full-service community,” Thyes said.

“A diverse tax base of commercial, service, dining, office and light industrial land uses helps to relieve the tax burden on single-family properties,” he said.

Delorit credited the Community Development Authority — a panel of residents, business owners and elected officials — with guiding village involvement in development projects.

“There are times when it is necessary to assist a business or developer to make improvements that benefit the village as a whole,” he said. “The Community Development Authority has done an excellent job of assisting the Village Board in making these kinds of decisions in the past and will continue to do so in the future.

“I fully trust their decisions.”

Next year, the comprehensive plan — a document outlining the village’s development priorities and goals — will receive a “complete update,” Thyes said, a process that will involve residents, business owners and nonprofit leaders.

Delorit said the revision is necessary to address the changing business landscape.

“Let’s be honest, the business climate has changed very quickly since Covid, with less folks working in offices and less retail opportunities as more people shop from home,” he said.

Development increases demand on municipal services, in turn leading to necessary increases to the village budget, Delorit said, however, growth is still positive.

“As long as you have a plan for future growth you can mitigate most of the growing pains,” he said. “If you don’t grow, you will become stagnant, business will leave and residents will be unhappy with the services the village provides.”

To fund projects, the village has extensively used tax incremental districts, designated areas where tax dollars are captured for a fixed period of time to fund development incentives and infrastructure improvements.

“TIDs are the most effective economic development tool available to municipalities when they are used responsibly,” Thyes said.

The village has had mixed success with its TIDs. A recently-closed district to fund downtown improvements got bogged down in interest payments for several years while another from 2004 intended to revitalize Wisconsin Avenue “has had its challenges,” although it recently had success with Farm and Fleet and Harbor Freight moving into a strip mall in the district, Thyes said.

The TID that funded the expansion of Port Washington Road to four lanes in 2006 has posted good returns, helped by the construction of Grafton Commons that includes Costco and Kohl’s, Thyes said.

Last month, the village created a TID to fund the demolition and remediation of the Goldberg foundry.

Delorit said he plans to not create additional TIDs until the existing ones are closed.

“TIDs have their use, but a municipality needs to carefully assess benefits versus drawbacks,” he said. “We are very conservative in our planning.”