Brown Deer, Wisconsin Development News

Donut Monster LLC Acquisition and Redevelopment Approved for North Deerwood Drive

The village board discussed a potential redevelopment project at the Hansen Storage site, which is open to the idea of redevelopment. The site was acquired for approximately $8 million and is assessed at that value. Any redevelopment that involves demolishing the existing building would require a significant increase in valuation. The plan includes a mix of housing, potentially on the north end of the site, with a desire for for-sale product. Density could be increased on the southern side to support commercial opportunities in the cafe core zone. Future meetings will allow the board to discuss different concepts. Staff are engaging with developers to generate ideas for the board to react to. Specific interest was expressed in for-sale products rather than single-family residences due to construction costs. Stacked flats or townhome-style properties are considered more feasible for sale products. The current market makes building new single-family homes at a cost competitive with existing homes challenging, despite some exploration of prefabricated or modular construction to reduce costs. The site is located north of the marketplace and is part of the Sherman Toonia reconstruction efforts. The board will have future meetings to discuss redevelopment concepts. The village staff is collecting ideas from developers for the board to consider. Initial feedback was received during a strategic discussion last year. The sale price for the property is $425,000, with a minimum guaranteed assessed valuation of $750,000. The agreement includes a completed full-build commercial kitchen by January 1, 2028, a reduced commission of 3% for KERS, and a closing date by September 7, 2026. Village permit fees would be waived. A rezoning and development agreement will be needed next month as the current zoning is part of a larger parcel. The Certified Survey Map (CSM) will create a new property to be rezoned for the restaurant/bakery. The agreement excludes the next item, which is a separate action. A tax key needs to be created to represent the parcel being sold, as the current tax key covers the entire park. The commercial kitchen completion is slated for January 1, 2028, but the business may be operational before then. The guaranteed value improvement kicks in January 1st, with a buffer for potential delays. The Donut Monster will likely not have the pizza operation first but may begin the donut operation based on current supply chains. The intent is to transfer production to the Browner location to supply other locations. Pizza production will commence once the commercial kitchen is operational. A portion of the acquisition price, just under $425,000, will be allocated to park development, anticipated to be just over $200,000. This will be used for park construction in the summer of next year, with Damon Farber as the consultant for planning. A Certified Survey Map (CSM) land division is required to split the building and a portion of land for the sale to Donut Monster LLC. This CSM will also facilitate the rezoning. The village will maintain a permanent public access easement on the sidewalk running from Deerwood Drive to 43rd Street to ensure continued public circulation, even though the property will be privately owned. This easement is to prevent future owners from blocking access. The upkeep and maintenance of this sidewalk area will be the responsibility of the village.