Council approves nonbinding MOU to study 210‑acre mixed‑use project at Pabst Farms with Village of Summit

The Oconomowoc Common Council voted Oct. 7 to approve a nonbinding memorandum of understanding (MOU) with Pabst Farms and developer Cobalt Partners to study a roughly 210‑acre mixed‑use project that straddles the city and the Village of Summit.

Why it matters: The parcel, which includes land north of Interstate 94, is large and potentially transformative for the local tax base and transportation network. The MOU does not approve any zoning, TIF or infrastructure funding; it establishes an early roadmap for market analysis, master planning, phasing and site‑level studies and makes clear that future approvals would require separate, formal municipal actions.

Scott Yauch, president of Cobalt Partners, told the council the team’s objective is “building community” and that the team will undertake market and infrastructure studies, master planning and stakeholder outreach if both municipalities agree to the MOU terms. The proposed study area covers the northern parcels in Oconomowoc and an adjacent portion in the Village of Summit; Summit’s board was scheduled to consider the same MOU on Oct. 9.

Key MOU terms and council changes: The MOU is explicitly nonbinding, sets a schedule for initial deliverables and requires the developer to reimburse municipalities for professional review fees. City attorneys negotiated edits; council members asked that the publicity paragraph be removed and that termination be mutual; staff said those changes were acceptable and were incorporated before the motion to approve. The MOU also lists possible implementation tools the parties may explore later, including a potential tax incremental financing (TIF) district and coordinated infrastructure planning, but those tools were not approved by the MOU itself.

Council action: Councilmember motioned to adopt the MOU as amended and the motion passed by roll call (all present aldermen recorded votes in favor). The mayor and staff noted the MOU simply starts a formal planning dialogue and does not commit the city to specific entitlements, financing or sale of public land.

Next steps: The developer and the two municipal staffs will assemble a project team, complete market and transportation studies, design a master plan and return to each governing body for any rezoning, TIF or capital approvals. Staff indicated the MOU sets a schedule for initial deliverables and called for additional public outreach as the planning proceeds.

Details: The proposal area includes a mix of commercial and potential multi‑family uses in early concepts and proposes roadway changes to connect to the existing Pabst Farms network; staff emphasized that transportation and environmental studies will be required before any regulatory approvals.

The council’s approval was limited to the MOU (a statement of intent and process). Any future agreement, financing or land sale will require further public hearings and separate council votes.