SHEBOYGAN — An orange netting has partitioned off a seven-acre parcel of land near the Sheboygan lakeshore for over three years, the site of the former Aurora Memorial Hospital.
The City of Sheboygan recently acquired this lot and has tentative plans to transform it into 21 single-family homes, utilizing a financing method known as Tax Incremental Financing (TIF).
John Belanger, the 2nd District Alderman, expressed optimism about the project, saying, “The northeast side of Sheboygan — It’s a beautiful place to raise a family. It’s a great neighborhood.”
Belanger, who resides in the area, believes this development could help revitalize the neighborhood.
The project would also include a revamp of a century-old sewer system.
WATCH: Sheboygan's housing development proposal sparks debate over tax dollar usage
TIF allows the city to fund the project by using the increased property tax revenue generated from the development, designating the area as a Tax Incremental District (TID).
While this method is seen as a boost for growth, it has raised concerns among some community members.
Wyatt Benson, co-founder of the civic group Sheboygan First, criticized the approach, stating, “That’s our tax dollars going into developer pockets.”
Benson’s group was founded in opposition to projects like this, arguing that funds diverted from other vital local programs could be detrimental.
According to Benson, the homes planned for the site would have an estimated market value of $400,000. He noted that this raises additional concerns.
“I think it’s very concerning that we are having tax dollars being spent to prop up wealthy home ownership when the median income is only about $71,000 within Sheboygan County."
Despite the criticism, Alderman Belanger defended the need for new housing, emphasizing that “houses are needed across the board in Sheboygan.” He added, “It’s a chance for the city to have increased tax revenue and have a project that [would make] this neighborhood whole again.”
In a 9-1 vote Monday night, the Sheboygan Common Council approved the plan, moving the project forward.
