Northern Lights Subdivision planned for former Sheboygan Memorial Hospital
Pelton Builders has submitted preliminary plans for 21 homes

SHEBOYGAN — Plans are moving forward for the former Sheboygan Memorial Hospital on North 7th Street.
According to Reedsburg-based Pelton Builders, the proposed Northern Lights Subdivision will include 21 single-family homes, each with approximately 70-feet wide lots. The two lots along North Avenue are planned at 92-feet in width to comply with existing side setback requirements set by the City of Sheboygan. The development will be constructed in phases from north to south, with five to six homes built during each phase. Homes will range from 1,500-square-feet to 1,800-square-feet in size, with an anticipated average purchase price of approximately $400,000.
Typical home designs will include three bedrooms, two bathrooms, and a side-loaded garage, ensuring a cohesive residential neighborhood according to Project Manager Devin Coyle. The City of Sheboygan purchased the nearly 7-acre property from Advocate Aurora Health earlier this year. The hospital was demolished over the course of a few months in 2023. According to records, the land is valued over $1.4 million.
Earlier this week, the Common Council approved controversial Tax Incremental District (TID) #25 which included $1.6 million in development incentives. Pelton Builders was also selected for TID #23 and received a developer incentive to construct multi-family housing in the new Gartman Subdivision on the city’s far south side.
The City Plan Commission will discuss the Northern Lights Subdivision proposal on Tuesday, May 27th at 4 PM inside the Common Council Chambers.
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