KAUKAUNA – After supply chain issues and lack of funds pushed back construction on a $30 million hotel and apartment development in Kaukauna, a new developer is taking over part of the project to speed up its completion.
Harvest Development LLC was the original developer for the hotel and apartment projects, but the apartment development has shifted to Dreamville Kaukauna LLC.
“Harvest Development has a number of projects in the works with the city,” Kaukauna Mayor Tony Penterman said in a statement to The Post-Crescent. “To devote more time to those projects they are letting another developer take over the apartments.”
During Kaukauna Common Council’s April 19 meeting, council members unanimously voted to shift the apartments developer’s agreement over to Dreamville Kaukauna.
At a previous council meeting, Penterman told The Post-Crescent the project was getting a new developer after Harvest Development couldn’t get funding for the full project.
Dreamville Kaukauna is set to begin construction of the 101-unit apartment complex located at 250 Lawe Street in the next few months, according to Kaukauna Director of Planning and Community Development Joe Stephenson.
Ground breaking on the hotel and apartment hasn’t been finalized with either developers.
“It might be May, it might be June,” Stephenson told The Post-Crescent on Friday.
Harvest Development will continue its contract for the Sleep Inn & Suites by Choice Hotels.
Under the new agreement, all obligations and incentives under Harvest Development’s developer’s agreement will be assigned to Dreamville Kaukauna.
The new developer will now get the $1.06 million loan from the city for the project and be expected to complete construction by Dec. 31.
The two projects are supported by a tax increment financing (TIF) incentive that includes $1.6 million in city-backed loans — $1.06 million loan for the apartment, $540,000 loan for the hotel — in addition to $2.2 million in incentives.
The original development agreement between the city and Harvest Development stated both projects must be completed by Dec. 31 or the developer won’t receive the full $2 million in incentives.
Initially, construction of the hotel was supposed to begin in the fall and finish up by the start of the 2022 Packers season, with construction of the apartment complex to start soon after and be completed by the end of summer 2022.
Sophia Voight is a government watchdog reporter for the Appleton Post-Crescent. She can be reached at [email protected] or 920-993-7102.