Sheboygan committee approves TID 23 development agreement amid affordability and statutory concerns

The Sheboygan City Finance and Personnel Committee voted to approve a tax-incremental district (TID 23) development agreement with Timberwood Metals LLC after public commenters warned the plan would deliver predominantly market-rate housing and raise long-term costs for the city.

In public comment, Lisa Salgado said, “The city has still not released Pelton's proforma as requested by FOIA request several weeks ago,” and argued the project would deliver housing Sheboygan residents could not afford. Peter Jacobs urged the committee “to not approve the TID 23 development agreement,” saying the proposal “violates Wisconsin statutes,” would subsidize a speculative development, and—he alleged—would commit the city to roughly $100 million in obligations and transfer title to about 195 acres at no cost to the developer.

Developer representatives, including Luke Pelton and Devin Coy, told the committee they had revisited the project following the committee’s earlier request for an affordability component and concluded that implementing rent caps or HUD-style affordability requirements “will not be feasible.” Coy said affordability mandates would reduce property values in the pro forma, weaken the tax-increment revenue stream needed to cover infrastructure costs and make lenders and investors reluctant to participate. The developers said that HUD-funded affordable projects typically require additional grant funding or programs (for example, state or nonprofit affordable-housing funds) to close financing gaps.

Committee members pressed the developers about lower-percentage affordability commitments. One member noted the draft comprehensive plan’s household-income profile and said roughly 34% of Sheboygan households qualify as extremely low or very low income. Committee members asked whether the developer would consider lowering an affordability set-aside (15%, 10% or 5% were discussed). A committee member noted the developer’s team had discussed an upfront capital need during questioning; a speaker referenced a $72 million figure for initial capital but the developer said there was no definitive number available at the meeting.

Developers described the project’s market targets and phasing: single-family homes on smaller lots aimed at roughly $325,000–$450,000, duplexes and attached products at lower price points, and apartment rents in the approximately $1,200–$1,500 range for one- and two-bedroom units. They said single-family housing would be concentrated in phases two and four, townhomes and apartments in phase three, and phase five would include senior living and neighborhood amenities.

Peter Jacobs and Lisa Salgado pressed the committee on statutory compliance and transparency. Jacobs asserted state law prohibits Greenfield residential TID awards and 100% residential TID projects; the committee did not introduce a new statutory citation in the hearing to rebut or confirm that interpretation. The transcript records those assertions as public comment rather than staff findings.

After discussion the committee, by voice vote, took the item off the table, moved to approve the resolution authorizing city officials to enter the TID development agreement and to issue taxable tax-increment municipal revenue obligations; the chair announced the motion passed. The record in the transcript shows the motion was made and seconded, with approval announced by the chair. No roll-call tally or formal recorded vote with individual member votes appears in the transcript.

The committee noted the next regular meeting date as March 23 and said a special meeting may be scheduled. The committee then adjourned.

Authorities mentioned in the meeting were general references to "Wisconsin statutes" made by a public commenter; no specific statute numbers were cited during the hearing. Developers and staff cited the 2023 housing study and prior land-purchase history as the factual context for the project.