By Chad Pelishek, Director of Planning and Development
On September 14, 2017, Encore Apartments celebrated their grand opening. This marks a milestone for the City of Sheboygan. Approximately two and half years ago, the city started the process to encourage downtown apartment development. Prior to the recent apartments downtown, Sheboygan did not see a new apartment development for 10 years. The Encore Apartments on the former Boston Store property include 81 units with rents ranging from $900 to $1,100 a month. Residents commented during this time that Sheboygan will never support these ranges of rents. As of the grand opening date, Encore had approximately half of their units rented consisting of studios, one-bedrooms and two-bedrooms. The demographics of renters are primarily young professional or millennials that are employed at Acuity and Kohler Company. The goal was accomplished of getting more people to live downtown as well as encouraging the young professional to live downtown.
Phase one of the Portscape Apartments in the South Pier District consists of 53 units. To date all 53 units are fully rented. The demographics of the renter at Portscape consists primarily of 70 percent empty nesters/new retirees. Ironically, the higher rent units at Portscape were some of the first units to be rented. The rents at Portscape range from $1,000 to $1,500 per month. Based on the success of Phase one, Portscape developers have recently started on Phase two which consists of 35 units for a total of 88 units once completed next year at this time.
As one can see, when you travel down S. 8th Street, construction has begun on a third apartment project on the former Ss. Syril Convent property. This project, when completed next fall, will add 91 new apartments. The City estimates that this project will be a combination of empty nesters and young professionals, given its view of Lake Michigan and its central location of the downtown and riverfront. All three of the projects will bring an investment of $31 million to downtown Sheboygan.
Comments on Facebook and in the city community survey asked for more affordable housing units. Washington School is currently being converted to an affordable housing complex that will provide 42 new apartments for income eligible tenants. Also, a developer is working to obtain financing to renovate the former Historic Tannery off Indiana Avenue into approximately 75 affordable housing units. Between these two projects, 120 new affordable housing units will be added to the current stock of affordable apartments available in the Garton Toy Apartments, Leverenz Building, Balzer Building and Henry Jung building. Per the requirement of the affordable housing sources of funding through the Wisconsin Housing and Economic Development Authority (WHEDA) Section 42, a tenant needs to make a minimum income and maximum income. For Sheboygan the maximum rent limits for a one-bedroom is $646 per month. Every five years, the city is required to complete an analysis of impediments to fair housing that looks at the current inventory of affordable housing units. Based on our population and demographics, this study has determined the city has enough affordable housing, but could increase the number of affordable housing units available to persons with disabilities. According to the 2010 census, 12.3 percent of the city’s population has a disability. With the new affordable housing projects under construction, this impediment should be met based on the demand for this type of units. Another impediment identified in this study is the lack of three bedroom units. The affordable housing development in the former tannery project is scheduled to include up to ten three-bedroom units.
In order to receive federal funding, the city monitors the number of affordable and accessible housing units. The increase of market-rate rental units, primarily the new ones opening in the downtown, are being encouraged to accommodate the needs of a different demographic. Quality housing opportunities are all in Sheboygan’s vision of being a family-oriented and prosperous community with a wide- variety of housing, business, cultural and recreation opportunities in safe and attractive neighborhood.