Port apartment building plan receives initial OK

A vacant piece of land on Port Washington’s north side that was once considered for everything from office condominiums to commercial developments will become an apartment building, according to plans approved by the city in recent weeks.

The land, a 1.3-acre parcel between the park-and-ride lot off Highway LL and the Holiday Inn Express, is now earmarked for a four-story, 42-unit apartment building.

The building received concept approval from the Plan Commission last week after being recommended by the city’s Design Review Board.

But the property is only zoned for a 37-unit building, and the developer would need to seek a variance to get permission for the other five units, something that prompted commission member Eric Ryer to vote  against the concept.

“To me, it seems like an instance of if it (zoning) allows 37 units, it should be 37 units,” he said, adding this could set a precedent that the city doesn’t want. “Anything you can do to keep it at 37 units would be appreciated.”

Ryer asked if there’s a hardship that would justify the extra units, and Chris Merklein, a principal with developer North Town Partners, said it will help make the building viable.

“In general, getting a multifamily real estate project to work in today’s environment is difficult,” he said, particularly with the cost of development, interest rates and the fact there’s no tax incremental financing district to help with costs.

The company’s partner, Duquaine Development,  has built a number of these types of buildings, Merklein said, calling it an efficient project.

“We know its a very high quality both us and Port Washington can be proud of,” Merklein said.

The apartments will be market rate, North Town asset manager Korey Salmon told the Design Review Board, with one-bedroom units going for $1,375, two bedrooms for $1,750 and three bedrooms $2,300.

“We’re still looking at a very high level of development, but it’s right in the sweet spot in terms of rates,” he said.

Design Review Board members praised the fact that the building is set close to Highway LL with parking to the rear closer to I-43, but they asked the developer to break up the mass of the structure.

“The scale seems quite large for the site,” Fire Chief Joe DeBoer, a member of the board, said. “This kind of looks like a large rectangle at a key entry to the city.”

Shrinking the mass of the building by reducing the footprint and going up another floor is something he would consider, City Engineer Roger Strohm, a member of the board, said, or finding a way to break up the facade to make it appear smaller.

That’s especially important given the location of the building, officials said.

“It’s a very visible location from I-43 and just coming into the city,” Bob Harris, the city’s director of planning and development, said.

Mayor Ted Neitzke, chairman of the Plan Commission, said the property is ideal for an apartment building.

“I appreciate this project on that spot. There’s no density for workforce housing, available rentals there,” he said, adding that the proximity to the freeway makes it ideal for commuters.

“I think that’s going to fill very quickly.”

Merklein said North Town Partners would like to break ground in April or May. The project is expected to take 11 or 12 months to build, he said, so it will likely be available for rent in spring 2027.

Neitzke told the developer that the city has high expectations for the building and landscaping.

“This partially defines the exit 100 entrance to Port Washington, which is a blank canvas right now,” he said. “High expectations.” 

Final plans for the project are expected to be brought back to the Design Review Board and Plan Commission next year.