City of Oshkosh plans to recommend council approve all phases of 522-unit housing development on Lake Butte des Morts Drive

OSHKOSH ― Residents may have their concerns, but the city certainly doesn’t.

Developers could be moving forward with something close to their initial plans for the 522-unit housing development at Lake Butte des Morts Drive, as the city will recommend council approving the specific implementation plans for all six phases at once.

City of Oshkosh Development Director Kelly Nieforth confirmed the proposal after sitting in on a second neighborhood meeting between residents and developers Red Earth, LLC.

“We’re seeing more and more developers wanting that assurance from the onset, and I think it will be more of a common occurrence going forward and then we’ll be able to attract more developers to Oshkosh when they see that approval,” said Nieforth.

The development has been a major source of contention for neighboring residents, who’ve raised questions about everything from traffic increases to environmental issues.

But the biggest concern seems centered on the visual impact for nearby properties as the plans call for at least two four-story apartment buildings.

Council originally voted to amend the SIP for Phase 1 by reducing the height to three stories.

Council initially voted to amend the SIP for Phase 1 by reducing the height to three stories last March before developers said the adjustment would not be profitable.

However, city council overturned that decision months later and allowed Red Earth to keep its initial four-story plans, leading the developers to seek an approval for all six phases at the same height.

“The base zoning code allows for two-and-a-half stories or a 45-foot-tall building to be built 30 feet from a property line, but in the instance of this development, they are hundreds of yards and feet, up to a quarter mile or more in some situations, away from the closest property,” explained City of Oshkosh Planning Services Manager Mark Lyons.

“So that additional height should not have an impact, and I think the planner proposal is consistent with the prior plans we’ve seen and it meets the housing needs assessment that we did.”

The project has been opposed by neighboring residents ever since March 2023 when the city's Plan Commission initially approved the development plan for 522 housing units to be built on the former farmland of the west 3400 block of Lake Butte des Morts Drive.

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Developers can only build on 20 acres of the 72-acre property because of the surrounding wetlands and marshes.

All but 20 acres of the 72-acre property is wetland and marshes, forcing the developers to focus on apartments with more stories.

Red Earth’s initial plans featured five four-story apartments with 82 units, two four-story apartments with 40 units and eight two-story townhouses with four units, including partially underground parking.

Red Earth was denied tax increment financing assistance to make up for the potential shortfall of council’s initial decision to reduce Phase 1’s SIP to three stories.

Residents still had questions about any possible financial incentives for the developer, the size of the project and the environmental impact to the area.

“I believe the concerns that the neighbors expressed will be addressed through the site implementation plan process,” said Nieforth.

“We do like to hear from neighbors, and we try to encourage developers to work with the neighbors to find some compromises because a lot of times it’s with landscaping and some situations it may be fencing or location of driveways.”

The development comes as Oshkosh tries to weather the nationwide housing crisis.

Outagamie County did a study showing the region needs to build 10,000 to 17,000 housing units over the next six years.

The city worked with a consultant to outline a comprehensive housing needs assessment and strategy plan before Outagamie County did a study showing the region needs to build 10,000 to 17,000 new affordable units over the next six years.

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“I think this development is in line with the comprehensive housing study Oshkosh did, so approving this project just makes sense because every day developers experience a delay only increases the cost of units or lots,” said Realtors Association of Northeast Wisconsin Director of Public Relations and Government Affairs Jennifer Sunstrom.

“We need housing as we are thousands and thousands of units behind where we need to be to have a balanced market, and that means having housing units and apartments at every price point.

She continued, “So, if we’re providing a more predictable and efficient development process to developers, then that will draw even more developers in the future and help us to keep the cost of housing down.”

Have a story tip or public interest concern? Contact Justin Marville at jmarville@gannett.com.

This article originally appeared on Oshkosh Northwestern: Oshkosh housing project on Lake Butte des Morts Drive to gain approval