Developer looks to build hotel next to Pacifico
The new hotel would be similar to the Watershed Hotel in Sheboygan

SHEBOYGAN — A developer is eager to build a new boutique hotel on the Sheboygan River.
Paul Weaver of Mequon first proposed constructing a hotel next to Pacifico Mexican Bar & Grill last year. The hotel would be built between Pacifico and South 8th Street. Currently, the space is a parking lot frequently used by fishermen. Pacifico leases the building from HH2 Properties LLC. Up until recently, Weaver and Steve Schmitt had co-owned HH2 Properties. Schmitt transferred his stake in the company to investor James Kupfer of Franklin, who has ties to the Watershed Hotel.

Kupfer and Weaver are already partners with Watershed Hotel according to Attorney David Gass, Managing Partner at Rohde Dales. The developers have not yet submitted their concept to the City Plan Commission, which would need approval before construction proceeds. Pacifico will not be affected by the development and is expected to remain open for business.
The 1.75-acre property is actually owned by the Sheboygan Redevelopment Authority. When construction on the Highland House began in 2006, an 85-year ground lease was signed by HH2 Properties, which has been the case with other properties along the Sheboygan Riverfront and the South Pier District. The city’s Redevelopment Authority purchased the property, used by the C. Reiss Coal Company, in July 2003 for $1.8 million from Koch Industries as part of the South Pier District redevelopment.
The 10,000-square-foot Pacifico Mexican Bar & Grill opened on Indiana Avenue in 2019, a few months after Sprecher's Restaurant & Pub closed. Highland House 2, as it was called, opened in June 2007 and closed in January 2017.
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