Village aims to spur new homes with fee discount

The Village of Fredonia is stepping up its game to attract new residents by essentially offering a coupon.

The Village Board this month approved Fredonia First, a new construction incentive program that offers $5,000 in waived residential building permit fees.

Village Administrator Christophe Jenkins said that during the 2023 strategic plan process, residential, industrial and commercial growth were made priorities.

In 2024 and last year, Jenkins said he was asked to develop an incentive program “that’s a little bit different that gives us a step ahead from other communities that are around us.”

Jenkins and Village Treasurer Julie Upson went to Washington County to learn about some of its programs.

“We looked at a myriad,” Jenkins said.

They came up with the $5,000 discount in fees on new construction.

New construction fees per house average about $6,000 to $8,000, Jenkins said.

“A big chunk of that are the fees that we collect, the sewer and water connection, park fees and things like that. And not that we don’t appreciate having those fees to kind of cushion our budget, it’s not make or break for us if we don’t get those fees,” he said.

The village would recover the value of those fees through additional tax revenue in two years on a new construction home, he said.

“Anything we can do to encourage development and offset our cost is a win,” Jenkins said.

That means a lot for $50,000 would be $45,000, or a $300,000 home would be $295,000.

“As long as the net benefit is going directly to the new homeowner, then we are comfortable waiving those fees because we know that we’re building that incentive and that positive relationship with that brand new person coming into the village,” Jenkins said.

Hillcrest Builders, which has more than 30 vacant lots in the Village Green development in the village, is on board with the plan.

“With Hillcrest making a large commitment to single-family and condominium homes in Fredonia, we are very excited about the permit fee incentive program as we believe it will meaningfully impact the affordability of new homes in the Village Green subdivision,” Hillcrest Homes owner Oyvind Solvang said.

Village Trustee Richard Ableggen instantly supported the idea.

“This is something that’s personal to me,” he said.

When he ran for office eight years ago, improving the relationship with the Northern Ozaukee School Board, increasing commercial growth and encouraging residential growth were his three priorities.

“As hard as we’ve been trying over the past several years, we’ve been hitting the wall, so if this is what’s pushing us past the wall and gets us there, the quick return on investment is worth up to the $5,000,” Ableggen said.

Trustee Jessica Franck asked Jenkins how much the owner of a $300,000 house pays in village property taxes. Jenkins said it’s about $3,000.

“So in two years we recoup our added value to the village of having an additional home,” she said. “I think it’s a great idea.”

“That temporary loss of $5,000 is nothing when you multiply that over the years of taxes we’ll get,” Jenkins said.

To qualify for the incentive, the village must receive verification that the $5,000 is being passed onto the homeowner through a reduced lot sale price or new construction costs.

“Fredonia First is about investing in our future,” Village President Peter Lenz said. “By encouraging new construction today, we grow our tax base, strengthen our neighborhoods, and welcome new residents who will contribute to the community for generations to come.”

For more information, contact the village at (262) 692-9125.