Big development proposed at Highway C/I-94
Medical, senior living, hotel facilities in proposal

By Kelly Smith - Special to Conley Media

Aug. 21, 2019

DELAFIELD — A $60-70 million multiuse medical, senior living and hotel development is being proposed near the interchange of Hwy C and Interstate 94.

Representatives of MSI General of Oconomowoc and The Property Advisor, a commercial real estate and development consulting firm, also based in Oconomowoc, will meet tonight at City Hall with neighbors living near the project site.

During the past 15 years, the neighbors have successful blocked about a half dozen different development proposals on the 27 acres of woodlands near the interstate interchange and adjacent to Lapham Peak State Park.

“We are aware of the history of the property,” Jerry Erdman of The Property Advisor told Conley Media.

Erdman said he is looking forward to an open discussion with the neighbors about “a high quality, low impact campus complex” that would include a small hospital, medical clinics, senior living facilities, and a 90-room hotel.

Conceptual plans for 180,000 to 200,000 square feet of development on the southeast corner of the interchange are expected to be presented to the Plan Commission at its Aug. 28 meeting. Erdman told Conley Media the developers are prepared to pay to have sanitary sewer extended from the Dela-Hart Water Pollution Control facility in the city, beneath I-94, to the development site.

One of the reasons previous proposals have failed to win city approval is because developers failed to address the issue of who would pay for the extended sewer service.

Erdman also said the developers are prepared to pay for infrastructure such as streets, sidewalks and stormwater control, for the development without seeking financial assistance from the city.

He added that buildings would be limited to one to two stories surrounded by landscaping that would compliment the natural terrain of the site and provide an attractive gateway to the city at the interchange.

Plans include what Erdman described as a “mini hospital” in addition to medical clinics and a 40-bed assisted living senior facility along a 20-bed memory care facility.

He added there would be separate ownership for the hotel, senior living facility, and medical facilities, and he is in negotiations with prospective owners for each of those uses.

He emphasized the development is not a “spec project” where buildings are constructed before owners or tenants are secured.

He said the development will be built as owners or tenants for each of the uses are secured.

According to documents obtained by Conley Media, the developers have met with the city’s planning staff and Mayor Kent Attwell.

According to the documents, Attwell urged the developers to meet with the neighbors.

Most of the property is zoned B-5 for specifically defined commercial uses although there is an adjoining five acres zoned for agricultural use.

Neighborhood leaders have said they would not oppose any commercial development that complied with the B-5 zoning.

However, there is a possibility that either rezoning or conditional use approvals may be necessary for the senior living facility and the hotel, according to City Planner Roger Dupler.

One of the neighborhood leaders, Lynda Holton, would not rule out the possibility of successful negotiations between the neighbors and the developers.

She said some of the neighbors “might be willing to live with senior living” but the hotel “is probably a deal breaker.”