Fond du Lac City Council amends comprehensive plan for hospital expansion, approves industrial revenue bond process and several routine measures

The Fond du Lac City Council on Jan. 22 approved a pair of land-use changes to clear the way for an expansion by SSM Health, authorized an initial resolution to begin taxable industrial revenue bond financing for a project at 1125 East Johnson Street, updated the city's public deposit and investment policy, and approved event and board appointments.

The comprehensive-plan amendment and a companion rezoning affecting properties on Eastgate Place were the meeting's most consequential votes for land use. Council members voted to change the future-land-use designation from residential to institutional for parcels south of Division Street and to rezone four Eastgate Place lots from R-1 single-family residential to O office conversion district to align zoning with that plan amendment. The measures passed 5- (yes) with Council member Schisler recorded as abstaining.

The land-use changes will allow SSM Health to expand a medical facility to the east where floodplain and other constraints limit expansion in other directions. Community development director Benson told the council the parcels are owned by SSM and that plan commission and staff recommended approval. Benson also described the city's review of the zoning change and stated, "there is absolutely no liability whatsoever for the city," when explaining the city's role in similar financing mechanisms being discussed later in the meeting.

Separately the council approved an initial resolution to permit taxable industrial development revenue bond financing for a project at 1125 East Johnson Street (referred to in staff remarks as Johnson Crossing/Festival Foods Plaza). Community development director Benson said the financing tool is a limited statutory mechanism that can lower borrowing costs for qualifying commercial projects; she noted the initial resolution starts a public notice process, including a 30-day public notice period before a final resolution could return to the council. Benson said the project has supported about 37 jobs at the Johnson Crossing location and about three jobs at an associated retail site.

Council members also approved a routine update to the city's public deposit and investment policy after the director of administration explained the change would bring policy language into alignment with the city's investment adviser recommendations and add flexibility in managing the portfolio. Council member Mullen summarized the practical effect as allowing the city to "park money in a money market account," and Director Davey confirmed that was the intended change.

Other actions taken: the council appointed two midterm replacements (one to the advisory park board and one to the alcohol license committee), waived the prohibition on possession of alcoholic beverages on a defined stretch of Sheboygan Street for the Al. Sadoff Center for the Arts' Sturgeon Spectacular festival (Feb. 7'9, 2025) with restrictions on glass and carry-ins, and approved a corrected ordinance amendment to the city code on intoxicating liquors after a numbering error was found during codification.

Votes at a glance

- Resolution 9161 (appointments to advisory park board and alcohol license committee): passed unanimously (motion by Mullins; second by Heisler). - Resolution 9162 (waive prohibition on alcoholic beverages for Sturgeon Spectacular, Sheboygan Street, Feb. 7'9, 2025; no glass/carry-ins in designated area): passed unanimously (motion by Zimmerman; second by Leering). - Resolution 9163 (initial resolution for taxable industrial development revenue bond financing for 1125 East Johnson LLC / Rolling Meadows LLC): passed unanimously (motion by Heisler; second by Mullen). Staff noted a 30-day public notice period before a final resolution. - Resolution 9164 (update public deposit and investment policy to add flexibility, including money-market use): passed unanimously (motion by Mullen; second by Heisler). - Ordinance 3806 (amend 2040 comprehensive plan: change parcels near East Place from residential to institutional to permit SSM Health expansion): passed 5-0 with Council member Schisler abstaining (motion by Zimmerman; second by Heisler). - Ordinance 3807 (rezoning 14, 20, 208 and 36 Eastgate Place from R-1 to O office conversion district to match comprehensive-plan change): passed 5-0 with Council member Schisler abstaining (motion by Mullen; second by Heisler). - Ordinance 3791 (correction to previously enacted ordinance amending Chapter 400, intoxicating liquors and fermented malt beverages, to fix a numbering error discovered during codification): passed unanimously (motion by Schisler; second by Heisler).

Context and key details

- The comprehensive-plan amendment affects four lots on Eastgate Place; staff said there are four lots with three houses remaining on them and that SSM already owns the parcels identified for the expansion. - The industrial revenue bond resolution is an "initial resolution," a step in a statutory process staff said requires public notice and a possible referenda right; Benson described the tool as a pass-through financing mechanism that places liability with the borrower, not the city, and said the city uses the tool only rarely for qualifying projects. - The Sturgeon Spectacular event waiver would allow possession of alcohol on Sheboygan Street from Marr Street to Portland Street from Feb. 7 to Feb. 9, 2025, with a designated area where glass containers and outside carry-ins are prohibited. - The investment-policy update was described as a technical and compliance-driven revision recommended by the city's investment adviser to add flexibility in how funds are invested.

The meeting opened with a ceremonial proclamation honoring crossing guards and included one public comment thanking Greenway Arboretum volunteers. After taking the listed actions the council adjourned.