Housing development OK’d for old SMC land

The Shawano Common Council approved a deal Jan. 12 with Van’s Realty and Construction to build 15 single-family homes on the old Shawano Medical Center site, ending an eight-year limbo in which the city had been trying to come up with the best use for the site.

Under the agreement, Van’s has agreed to pay $500,000 to the city once the sale is closed, and the city will reimburse up to half of that amount if the company finishes building those homes within the next 2½ years. The homes will be a minimum size of 1,400 square feet plus a three-car garage and will occupy the 4.73-acre site that used to be a hospital before ThedaCare built its new medical center on the south end of Shawano.

The vote for the deal was 5-0, with Alderman Brad Keuschel abstaining because of his affiliation with the Shawano Ski Sharks. The hospital land is connected to Smalley Park, where the Ski Sharks practice and perform their water ski shows.

City Administrator Eddie Sheppard told the council that the homes are expected to sell for between $250,000 and $380,000. He noted that there were six different concepts presented to the city before the 15 single-family homes was accepted.

Having the $500,000 up front will allow the city to pay for extending Fourth Street, which ends currently at Smalley Street, west and north to Third Street.

“This allows us to utilize the funds to pay for the road without having to take out any debt,” Sheppard said. “You’re looking at a total return for this TIF (tax increment finance) district in about 5½ years.”

Prior to voting on Van’s plan, the council voted to change the zoning on the property from campus development to planned development.

While folks in the neighborhood like the idea of the single-family homes, some questioned whether it was necessary to have so many homes on that piece of land. Kelly Shelberg, who lives adjacent to the old SMC property, suggested that fewer homes go on the property and having the rest of it serve as park land or green space.

“I would agree that the single-family housing is a better option for this property than the four-story apartment that was proposed several years ago, but what I don’t agree with is that this needs to be jammed with 15 houses,” Shelberg said. “I believe that this property, which sits next to the Wolf River, should stand as is and be used by the community. We have been blessed by beautiful parks.”

Shelberg noted that, on the day of the council meeting, she saw cross-country skiers and pet owners utilize the hospital space for recreation.

“If no housing is not an option, would the council consider a compromise and lower the number of houses for a bit more community space?” she said. “Would you consider taking small steps in this process and perhaps consider a few homes before giving up the entire property and the last bit of land that Shawano, the City on the Wolf, has?’

Todd Dobberstein, president for Shawano Area Waterways Management, echoed Shelberg’s sentiments, suggesting that Smalley Park needed room to breathe. He noted that the space has been utilized for 20 Ski Sharks events and 25 other activities.

“Water and tourism associated with water is the number one biggest impact that Shawano has,” Dobberstein said. “Don’t make a decision today that will impact the future of what we can do with that park.”

Sheppard noted that the density for the old hospital land is less than nearby plots of land. Directly to the east of the hospital is 3.3 acres with 12 homes, and south of that is another 3.3 acres with 13 homes.

Not everyone in the standing-room-only council chambers felt leaving the land or at least some of it open was a good idea. Former City Administrator Brian Knapp, who lives near the hospital land, said that Shawano needs high-quality housing in order to continue to prosper. He said that if the city doesn’t move on this, the homes will be built in the towns of Wescott or Richmond because people want to live in the Shawano area.

“Each of those families represents at least $55,000 of economic development for this community every year, and that’s a very conservative calculation,” Knapp said. “That is something you can’t replace with an event space or a park.”

Shirley Hinze pointed out that affordable housing would be better to attract people to Shawano than high-quality housing.

“If we’re going to keep housing affordable for people who work in the city of Shawano, this basically puts these dwellings out of the financial reach of most citizenry,” Hinze said.

Housing overall is a problem, according to John Miesbauer with Coldwell Banker, the real estate company that has been working with Van’s to sell the homes it constructs. He noted that Van’s built 10 homes in Shawano last year, and all of them sold before construction even began.

“What does that mean? It means there’s a huge need for housing in Shawano,” Miesbauer said. “Currently, there are a total of seven homes for sale in the city of Shawano. One of these homes is yet to be built.”

Alderwoman Sandy Steinke noted that, in the eight years the council has been looking at ideas for what to do with the former SMC site, this was the first time there was money for the city attached to it.

“We’ve gone through several different proposals with giving away that land and making different TIF districts, and we’re actually getting money for this land for the first time that I can remember,” Steinke said.

lpulaski@newmedia-wi.com