Duke Behnke | Appleton Post-Crescent
APPLETON – Net new construction in Appleton fell behind the average of the Fox Cities in 2022, continuing a trend that Appleton’s 2022 Growth Report says “warrants monitoring” to ensure the city captures its fair share of development.
Appleton’s net new construction increased 1.89% last year, compared with 2.11% for the Fox Cities. The metric is an important factor because it determines how much a municipality can increase its property tax levy.
Harrison (5.92%), Hortonville (3.57%), Kimberly (3.55%), Vandenbroek (3.47%) and Greenville (3.23%) all exceeded the average.
Accompanying Appleton in the below-average bracket were Grand Chute (1.65%), Fox Crossing (1.56%), Neenah (1.54%) and Menasha (1.51%).
Matt Rehbein, Appleton’s economic development specialist, said communities with large tracts of greenfield sites are better positioned to increase their net new construction than mature, largely developed cities like Appleton.
With defined borders to its east, west and south, Appleton must encourage redevelopment, which is more costly and complicated, Rehbein said.
“If we’re looking at a redevelopment site in our downtown, there’s a lot smaller pool of developers who are savvy enough and who have the wherewithal and are willing to take the risk to take on one of those sites versus a greenfield site somewhere in the outskirts,” he said.
Appleton represents 28.42% of the equalized property value in the Fox Cities, but its share of the net new construction in the Fox Cities was 25.89% in 2022.
In the past nine years, Appleton met or exceeded its share only once — in 2016. That’s concerning, Rehbein said.
“We will have to continue to be proactive in creating an environment and location where businesses, developers, and individuals wish to invest their resources if we wish to maintain our proportionate share of growth,” Rehbein told the city’s Community & Economic Development Committee.
Appleton experienced a net loss of eight businesses during 2022. The Growth Report lists 110 businesses that opened or relocated in the city and 118 that closed, relocated or moved outside the city.
Here are some of the other key findings of the Growth Report.
Projects on the horizon include affordable housing apartments, U.S. Venture
The report lists eight projects in the works that will drive growth in Appleton.
They include Rise Apartments, a prospective affordable housing development on North Oneida Street; Urbane 115 (phase 1), a mixed-use building on the former Conway Hotel property at the southeast corner of Oneida and Washington streets; and Urbane 115 (phase 2), a mixed-use building on the site of the former Blue parking ramp at the southwest corner of Oneida and Washington.
Also on the list is U.S. Venture, which nearly six years ago announced plans to build a new corporate headquarters on the bluff south of Lawrence Street in downtown Appleton.
“This will bring approximately 1,000 employees and will add a minimum of $54.5 million in assessed value to our downtown,” the report says. “Details of the development agreement continue to be discussed and finalized.”
Committee member Nate Wolff asked for an update on the project last week.
“Nothing to report at present,” Community and Economic Development Director Kara Homan said.
Home construction costs jump 22% thanks to supply chain, labor shortages
The average value of new homes built in Appleton was $466,612 in 2022, compared with $383,090 in 2021.
“The significant increase this year was largely due to supply-chain issues and labor shortages,” the report says.
Rehbein said Appleton anticipates a need for an additional 3,000 housing units during the next decade, an average of 300 units per year. The city issued permits for 184 units in 2022.
“That’s well below the 300-a-year need that we have,” Rehbein said. “We had final plat approval for 209 new single-family lots in 2022. That in conjunction with the new multifamily development downtown will help us get to that number.”
A single-family home with an estimated cost of $2 million is under construction at 7140 N. Trinity Court in Appleton.
Nineteen construction projects reach or exceed $1 million
Appleton had 19 construction projects started last year that were estimated at $1 million or more. They totaled $74.3 million, with $5.1 million of that exempt from property taxes.
- Checker Logistics, 1601 S. Lynndale Drive, industrial building, $15 million.
- Urbane 115, 115 E. Washington St., mixed-use building, $11.3 million.
- HPIII Appleton, 2575 E. Evergreen Drive, medical building, $11.2 million.
- F Street Appleton 2, 3725 E. Milis Drive, industrial building, $10 million.
- Outagamie County, 1375 E. Broadway Drive, park building (tax-exempt), $3.9 million.
- Steven and Jayme Frisch Living Trust, 6377 N. French Road, single-family home, $2.5 million.
- Brian and Kathleen Gottlieb, 7140 N. Trinity Court, single-family home, $2 million.
- Club Car Wash Appleton College, 3040 E. College Ave., demolition and new commercial building, $2 million.
- Farrell Investments, 3920 E. Endeavor Drive, addition to industrial building, $2 million.
- F Street Appleton 1, 3351 S. Eisenhower Drive, remodeling of industrial building, $2 million.
- Zuelke Flats, 105 W. College Ave., remodeling of mixed-use building, $1.9 million.
- Andrew Bruno, 2405 E. Downs Ridge, single-family home, $1.8 million.
- One Boldt Properties, 2121 E. Capitol Drive, remodeling of commercial building, $1.7 million.
- Marilyn Schenian, et al, 6555 N. Snowdrift Drive, single-family home, $1.5 million.
- City of Appleton, 100 W. College Ave., remodeling of government building (tax-exempt), $1.2 million.
- Richard and Phillippa Amankwah Joint Revocable Living Trust, 7434 N. Thomas Court, single-family home, $1.2 million.
- Pfefferle Investments, 122 E. College Ave., remodeling of commercial building, $1.1 million.
- Eisenhower Properties, 3825 E. Calumet St., commercial building, $1.1 million.
- Halle Properties, 3545 E. Calumet St., demolition and new commercial building, $1 million.
Appleton’s unemployment rate averages 2.6%, cost-of-living higher than neighboring cities
The average unemployment rate for Appleton was 2.6% in 2022. The low rate is consistent with the national trend termed the Great Resignation.
“Part of this can be explained as the baby boomer generation reaches retirement age, and part is explained by those who left the workforce to care for family members or for their own health considerations during COVID,” the report says.
The median household income in Appleton in 2022 was $63,603, compared with $70,389 for Wisconsin and $72,414 for the U.S.
Appleton had a cost-of-living index of 84.2. That compares favorably with the national average of 100 but unfavorably to Oshkosh (78.5), Sheboygan (79.4) and Green Bay (80.3).
Contact Duke Behnke at 920-993-7176 or mailto:[email protected]. Follow him on Twitter at @DukeBehnke.
