By Ryan Whisner
A developer’s agreement has been approved between the city of Fort Atkinson and Fort HealthCare for the construction of a new public street off McMillen Street.
The Fort Atkinson City Council unanimously approved the agreement at its Thursday, July 6, meeting, agreeing with the recommendation forwarded by the city’s Economic Development Committee.
City Engineer Andy Selle acknowledged to the council that there are some unique aspects to the agreement, which, despite the small size of the development was required by state statute due to a public improvement being completed by a private entity.
In terms of financial assistance being provided, over the 27-year lifespan of Tax Incremental District No. 10, the city will reimburse Fort HealthCare a total of $365,000 for the development of the yet unnamed road.
“It’s a fairly small amount of the increment generated on a residential basis,” Selle said. “We don’t have a final cost on the public improvements, but my early estimates were somewhere between $700,000 and $1 million for this short section of road, so I don’t think Fort HealthCare is receiving nearly what they’re putting into this, which was their expectation.”
Assistance was requested and the city engineer said he believes the two sides arrived at a reasonable number for the benefit that is being provided to the city.
“It’s an unusual situation,” Selle noted. “They’re essentially providing quite a bit of investment in that area without the expectation of a lot of payback in the long term.”
As approved, the agreement leaves the door open for discussion of amendments or new development agreements for future developments that utilize the infrastructure.
One scenario could see the other side of the road being developed and utilizing the infrastructure installed by Fort HealthCare. Selle said in that case, it would likely be reasonable for the city to look at the investment and provide a little more increment back to Fort HealthCare for its investment.
“Obviously with what Fort HealthCare is doing to try to open up areas of that part of the city for residential redevelopment, we certainly do want to assist them,” council member Mason Becker said before the unanimous vote in favor of the agreement has held.
From a financial perspective, the agreement requires a surety such that it has access to funds should the project not be completed.
In addition, Selle said inspection is being required on a full-time basis to alleviate the burden of city staff and ensure someone is consistently monitoring the construction of the infrastructure improvements.
“We’ve asked for review throughout the project and have requested that the improvements be publicly bid,” he said.
While the agreement was approved by the council, the portion relating to the required public bidding of the project was still under review by city attorney David Westrick.
Selle noted that in the past the city has required the public bidding process to be honored when reimbursing a developer for such improvements. However, it is not required by state statute.
“We’re kind of figuring out that particular situation so that may change that element of the development agreement,” he said.
Although specific to the development of the new street, the overall project referenced in the agreement is a continuation of an effort by Fort HealthCare to consolidate services and parking onto their main campus and assist in the redevelopment of the area north of Florence Street and on the east and west sides of McMillen Street.
Preliminary action by the city came in March 2023, when the council vacated a section of North Fourth Street, between McMillen and Armenia streets, to enable Fort HealthCare to expand its north parking lot into the location of houses it owns at 403 McMillen St. and 603, 609 and 615 N. Fourth St.
The intention is for all four houses to be relocated to what currently is designated as 426 McMillen St.
Subsequently, in June, the city council approved a preliminary plat creating the five new development parcels, public right-of-way and an outlot, and the rezoning of the five parcels to SR-5 Single-Family (Lots 2-5) and DR-8 Duplex (Lot 1).
As designed, it calls for relocating the four single-family homes to Lots 2-5; new construction of one new duplex on Lot 1; and supporting road, sidewalk, sewer, water, and stormwater infrastructure.
The council also rezoned 426 McMillan St. from Institutional to Single-Family Residential and Duplex Residential.
Per the developer’s agreement approved on July 6, two of the lots (homes) will be tax-exempt as Fort HealthCare intends to donate them to the Homeless Coalition of Fort Atkinson as shelters.
According to Selle, per the developer’s agreement, the new street, which will have sidewalks on both sides, curb, and gutter, will measure 30 feet curb to curb, making it narrower than most streets in the city and more akin to those in the older parts of the city.
He said parking will be allowed on both sides of the street, which still allows two vehicles to pass while there are parked cars, albeit very slowly.
Another element of the agreement relates to the end of the road, in a literal fashion.
“We wanted to make sure that it was very clearly stated what the expectations were,” Selle said, reminding the council of the complications that arose from the development of Doris Drive on the city’s northeast side.
In this instance, Fort HealthCare does have a larger plan in the area to extend Handeyside Lane through the area.
That aspect of any future development would be completed by someone other than Fort HealthCare.
Selle said Fort HealtCare is already in active discussion with groups experienced in that kind of development.
To accommodate the potential, the current plan calls for the new street to end in a “hammerhead,” indicative of a street that is yet to be further developed.
However, the city engineer said the city placed a five-year timeline for any extension of Handeyside Lane.
“If it should not occur within five years, then the development agreement indicates a cul-de-sac will be built at the end of that new road so that we have a proper turnaround and termination of that road,” Selle said. “We’ve kind of laid out a few milestones in there for that process.”
He said there also will be a stormwater basin at the end of the road to accommodate the homes and have the capacity for additional development in the area.
Fort Atkinson Municipal Building, file photo/Kim McDarison.
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