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Developer proposes duplex and condominium plan for Rainbow Lake; commission asks staff for follow-up

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Summary

On May 6, Hillcrest Builders presented a concept to replace unbuilt multifamily portions of the Rainbow Lake development with duplexes and condominium-style single-family units, proposing 41 new units and bringing the project total to 101 units versus the 248 originally approved in 2004.

On May 6, 2025, Hillcrest Builders presented a concept plan to the West Bend Plan Commission to redevelop the remaining undeveloped pads at Rainbow Lake. The developer proposed replacing the originally approved multifamily buildings with a mix of two-family (duplex) buildings and single-family condominium units, adding 41 new units in the undeveloped area and resulting in an overall total of 101 units for the project rather than the 248 units approved in 2004.

Paul Apfelbach, director of development for Hillcrest Builders, said the company has owned the property for five years and has worked with the existing homeowners association to try to facilitate completion. "We've owned this property now for 5 years, and the first time I'm here tonight is because we have worked patiently with the homeowners association that's there and the actual the former landowner, a guy by name of Bob Patch," he said. Apfelbach told the commission Hillcrest is not asking the city to incur costs or waive rights and that the developer plans to negotiate legal agreements so the existing association is not left bearing additional maintenance burdens.

Staff and commissioners raised technical and organizational issues: stormwater management and impervious-area calculations; existing private utilities and a lift station that has experienced an overflow in the past; and legal and contractual arrangements between the existing homeowners association and new units. Commissioners noted the current private roads, utilities and stormwater facilities are maintained by the existing HOA and that any new phase must address long-term maintenance and cost-sharing through enforceable documents.

From a design perspective commissioners flagged units sited in the middle of an island/cul-de-sac where building orientation may leave living rooms exposed to traffic. Staff recommended changes to landscaping and building placement to provide clearer front/back orientation for those units. The commission also noted the development inventory: three constructed four-unit buildings on the north lot and three constructed 16-unit buildings on the south lot (about 60 existing units), plus the developer’s proposed 41 new units, which together would yield 101 units in total — a net reduction of 147 units from the originally approved 248.

No formal zoning or land-use action was taken at the meeting. Staff asked the commission to review the concept and provide direction; commissioners asked staff and the developer to return with refined site, grading and stormwater plans and draft HOA/declaration language as applicable. Staff and the developer agreed to continue discussions and bring a more detailed package back to the commission at a future meeting (staff suggested June for further discussion).

Next steps: the developer will continue design work and legal coordination with the homeowners association; staff will analyze stormwater, utility capacity and HOA agreement options and return to the commission for additional consideration.