Concerns of contaminated Malibu Apartments site in Sheboygan loom amid future cleanup
SHEBOYGAN - Peggy Fischer, who has lived in King Park neighborhood for 32 years, is wary about how the Malibu Apartments, proposed on contaminated land, will affect residents and future tenants.
In addition to effects of the contaminated land itself, Fischer suspects there could be more frequent flooding in the lowland area and interruption of the natural hydrology cycle if the 210-unit complex is built on the Kite Beach plot on South Seventh Street. With an impervious surface and no soil to absorb rain, she said she's concerned there could be increased storm water runoff and reduced groundwater recharge.
“It’s just a big concern of mine,” Fischer said.
Malibu Apartments, LLC, received Wisconsin Department of Natural Resources approval for a site investigation work plan of the contaminated site. It was formerly occupied by the Optenberg Iron Works steel plant, which operated there in some capacity for more than a century.
Fischer worked at Optenberg in purchasing after college and was a witness to the lingering contamination when it was torn down in 2003 after shutting down.
Fill, including waste, was detected on the 4 acres of land, some as deep as 8 feet below the surface, according to a June 2024 DNR letter.
When a different developer, Sheboygan Lakeview Property, LLC, looked to redevelop the site into condominiums in the early 2000s, an environmental site assessment in 2005 determined the land didn’t qualify as a Superfund site but had several hazardous aspects, including an underground storage gas tank that released oil into soil and groundwater and an oil/chemical storage room that had surrounding soil impacts.
Contaminants were detected in 2001 but went unreported.
SLP applied for Voluntary Party Liability Exemption, an environmental cleanup program with the DNR, though site remediation still hasn’t been reached. The developer completed site investigation and remediation work until 2017.
Jake Buswell, developer with Malibu Apartments, LLC, said the VPLE program is not required for the new proposed project. Being in the program is costly and requires more DNR oversight of the material management plan, he continued.
“We could discontinue this program and seek DNR closure like many other contaminated sites that get developed,” Buswell said in an email. “However, for everyone’s piece of mind we think it is the right thing to do to make 100% sure everything is being handled properly and that long term there are no potentials for issues.”
The site cleanup will be supported with funding from a $500,000 Brownfield Assessment grant, awarded to the city last year by the United States Environmental Protection Agency.
The extent of funds dedicated to the project will be based on several factors, like sampling results and demands of the redevelopment project, according to County Planning and Conservation Director Aaron Brault.
DNR recommends extensive soil testing on the contaminated site
The DNR recently approved and recommended extensive remedial tasks for the land — installing about 24 soil borings that extend to a maximum of 16 feet; monitoring for groundwater samples on the beach, site and off-site on Clara Avenue; and providing a sediment and surface water assessment. The department also “highly” recommends collecting unsaturated soil samples up to two feet to determine “direct contact risk and future capping needs.”
The plan calls for monitoring volatile organic compounds, PAHs, PCBs and Resource Conservation and Recovery Act metals, like lead, arsenic and mercury.
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Concerns about flooding, storm water runoff persist in King Park neighborhood
Though there is a plan for site monitoring and testing, there don't seem to be final plans yet for stormwater or runoff management.
Fischer has experienced several flooding incidents living in the King Park neighborhood. She witnessed damage from the flood of 1998, overwhelming the city with 10 inches of rain within a 24-hour period. More than 800 homes were water damaged and 16 houses on Camelot Boulevard were torn down, beyond repairable.
“It was running in my windows,” Fischer said. She said her husband was up all night, running water out of the basement with a hose. They had to throw a lot of things away and check for mold.
Sewer water came up through cracks in her basement a few years before that. The city installed a sump pump crock to prevent future flooding. Fischer said the last significant flooding was in 2019, when she got a sump pump to remove water.
From her understanding, the catch basin at the corner of Georgia Avenue and Seventh Street was faulty and caused the most recent flooding. She hasn’t had any issues since but isn’t sure if it’s been fixed. She said the DNR told her a stormwater system could drain to the lake or connect to the catch basin off Georgia Avenue.
“That is a huge concern because is the infrastructure down here good?” Fischer said. “I’m concerned about it.”
The developers are working with Stantec, an engineering and environmental consulting firm, on the material management plan and a stormwater system, Buswell said. He didn't share more about a plan.
Jim Van Akkeren, who grew up in the neighborhood, said his concerns lie with the high water levels of the neighborhood, which could call for constructing a rubble or concrete revetment to break waves crashing near the shore of the proposed complex. He said this could have ecological impacts of an area natural with vegetation and sand dunes.
While revetments can prevent erosion from high lake levels, he said nearby properties may bear the brunt of diverted waves, too, and that type of manmade structure is “not consistent with what that area has always looked like.”
Lake levels were high when the Optenberg factory was still on the property, so it was also protected with concrete revetments. At that time, the lake wasn’t accessible from that point.
Malibu Apartments, LLC, has been in communication with the DNR about Ordinary High Water Mark and the Waterways Program qualifications for the proposed project, which could call for establishing a boundary between the proposed development and Lake Michigan based on consistent water patterns. The OHWM aims to protect public resources and give clear guidelines to private properties and projects.
In correspondence with the department, Buswell said the OHWM is on city land and the project should be “well away” from wetlands or the OHWM.
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Kite Beach land hasn't been sold yet
Sheboygan Lakeview Property, LLC, still owns the land for the proposed apartments, according to land records. The development group opted to stay in the VPLE program, according to correspondence with the DNR in February.
City Administrator Casey Bradley said he thought SLP may be applying for a zoning permit with the city in the future.
Malibu Apartment, LLC, couldn’t be reached to learn more about its plans to purchase the property.
Have a story tip? Contact Alex Garner at 224-374-2332 or agarner@gannett.com. Follow her on X (formerly Twitter) at @alexx_garner.
This article originally appeared on Sheboygan Press: Land contamination of Malibu Apartments site persist, DNR approves remediation plan
