Oconomowoc council hears detailed plan, bids and financing options for Village Green overhaul

City of Oconomowoc staff on Tuesday updated the Common Council on the Village Green renovation project, presenting final design renderings, a set of construction bids and a proposed financing plan while asking the council for direction on an easement needed to extend the boardwalk.

The project presentation, led by Jason Herzog, a city staff member, summarized 10 months of community outreach, two public meetings and design revisions with the architectural board. Herzog said the city received six bids and that “Elite Builds was the low bidder on this project.” He told the council the top four bids were clustered within about $40,000, which he said indicated bidders understood the scope.

Laurie (finance staff) summarized potential funding sources and a remaining shortfall. “After all of the funding available, which adds up to $3,300,000, we still have a funding gap of about $1,700,000,” Laurie said. She presented a scenario that would bridge the shortfall with borrowing: a $1.7 million, 10-year loan with straight-line annual payments of about $211,000. In that scenario Laurie said the debt service would increase the city’s mill rate by roughly 0.05, producing an estimated tax increase of about $23 on a $430,000 home.

Council members and staff outlined the package’s main elements: a new pavilion with restrooms, expanded boardwalk around the south side of Fowler Lake, four bump-outs along the shoreline with seating and lighting, improved perimeter planters (as decorative and security barriers), and embedded low-profile LED lighting in seating areas. Herzog said the design emphasizes flexibility for events and daily use and noted the team is working to harden utility access for seasonal event needs.

Funding commitments shown in the staff memo included: $1,000,000 from TIF District No. 4 (previously approved), about $595,000 in park impact fees, $400,000 from tourism fund balance, $250,000 from TIF No. 6 for boardwalk construction, $500,000 from TIF No. 6 for parking/street work, $100,000 from the Oconomowoc Downtown Business District and a potential $50,000 WEDC grant. Council members and staff also reported a separate $450,000 state street funding allocation that could be repurposed and would reduce the shortfall to approximately $1,200,000. Staff noted a possible $50,000-per-year naming-rights revenue for 10 years as an additional mitigation option.

Several aldermen urged reducing scope to lower borrowing. Alderman Rosack questioned including two alternates that would extend the boardwalk north across privately owned land; he recommended removing those alternates now and leaving completion to future private development or a later TIF-funded phase. “If somebody ever builds there, my strong suspicion is that they will ask for some developer incentive,” Rosack said, arguing that building the full connection now could remove future public-benefit leverage.

Other council members supported preserving the alternates as options so the city would have the ability to complete connections if funding or development opportunities align. Alderman Shellpepper and others raised safety and maintenance questions about benches, planters and lighting; Herzog and staff said the contract includes options for movable planters and that LED strips and concealed channels in seating would allow component replacement.

Council gave staff direction to continue pursuing an easement for the proposed north boardwalk connection. City attorney Riffle said staff had been preparing an appraisal but would not incur appraisal costs if the council chose not to pursue acquisition; he recommended continuing the easement acquisition efforts to preserve future options. “If we’re not going to pursue that… cancel that immediately. We will not incur any cost, if we’re not going to get an appraisal,” Riffle said, and then urged the council to approve continued negotiations so an easement would be available if needed later.

Staff said the project is not an action item this meeting but planned to return with an action vote in about two weeks. If the council proceeds with the current package and finances the remaining gap entirely through borrowing, staff estimated the 10-year debt service would raise the average homeowner’s tax bill by roughly $23 annually on a $430,000 home; staff also outlined options to reduce that impact by trimming alternates, securing grants and naming-rights revenue, or increasing contingency contributions from the general fund.

Herzog and staff described a proposed construction phasing to limit disruption during the summer event season: initial construction would focus on the building and utility work, with later work phased to minimize impingement on the park during major events. Herzog said he and the contractor will coordinate a schedule with the Chamber and event organizers.

The presentation included several requests of the council: approve the bid award at a future meeting if funding is agreed; confirm whether to proceed with alternates or remove them to reduce debt; and authorize staff to continue easement acquisition negotiations. Council members asked staff to prepare final borrowing numbers and a true-up of debt-feathering with other planned borrowings before the action vote.

If approved, staff projected construction would be staged through the summer, with fencing and confined work areas at certain times to keep parts of the park usable for scheduled events. Project opponents at the meeting primarily urged caution over cost and tax impact; proponents emphasized the long-term benefit to downtown businesses and event capacity.

Council members requested staff follow up with more detailed debt-service scenarios, any firm external funding commitments that can be secured before the vote, and a refined contingency and construction management plan. Staff said they will return in two weeks with a formal action item.