Highway access for Casey’s, apartments will cost county

Ozaukee County will pay the state $274,000 for the access rights to a 13-acre parcel at the intersection of Highway LL and Grand Avenue in Port Washington to allow for the development of a Casey’s General Store and a multifamily housing development for disabled adults.

Earlier this year, Ozaukee County officials asked the state Department of Transportation to waive or reduce the access fee, calling it “against the spirit of the property’s history.”

The fee is necessary, the DOT says, because traffic would be accessing a private drive, not a public street.

Casey’s General Store has proposed building a 4,286-square-foot red brick gas station, store and car wash on the southern six acres of the property. Cardinal Capital Management has proposed building a 90-unit apartment building with units set aside for people with disabilities on the northern half.

The parcel was once part of a cloverleaf interchange that was demolished in 2011 and replaced by the current roundabout there.

Cardinal purchased its 6.5 acres for $406,500 in August 2017. Casey’s bought its parcel for $500,000 in February 2018.

The development has since been stalled because of the fight over access rights. 

The county Public Works Committee last week met in closed session to discuss purchasing the access rights. In open session, without discussion, supervisors voted to direct  county staff to purchase the access rights.

County Administrator Jason Dzwinel said funds to purchase the access rights will come from proceeds from the land sale.

“The county will discuss potential cost sharing with the developers,” he said.

In February, county Public Works Director Jon Edgren told DOT officials the high price for access “is against the spirit of the property’s history.”

“(Since) the property was obtained by Ozaukee County for the express desire of development for the betterment of the residents and tax base of Ozaukee County and City of Port Washington, it seems contradictory to seek such a substantial sum ($274,000) for reasonable use,” Edgren said. “Further, any funds obtained through the sale of the property are anticipated to be invested into Ozaukee County’s highway system.”

County officials have said the funds will likely be used to build a new I-43 interchange at Highland Road in Mequon.

Casey’s officials have said they will invest $4.3 million in the site and have plans to develop the northern three acres of their parcel.