$40 Million Development Proposed For Downtown Racine

RACINE, WI — City officials partnered with a developer to announce plans for a $40 million development project in Downtown Racine.

Standing inside City Hall on Tuesday, Racine Mayor Cory Mason and Eric Hovde, CEO of Hovde Properties, announced plans to revitalize the former We Energies property at 233 Lake Ave.

This 3.55-acre site located at the southeast corner of Lake Ave. and Gaslight Drive just southeast of the Main Street bridge, was previously envisioned as the site for a $46 million arena. Those plans were scrapped in 2017.

Plans for the new development include the construction of two multi-family buildings, between four-to-five stories tall, with sweeping views of Lake Michigan will include approximately 190 market rate units with a mix of studio, one-bedroom and two bedrooms as well as a dedicated amenity building, workout facility, club room and outdoor activity centers. The multifamily buildings would be owned and managed by Hovde Properties with onsite management.

Plans also call for the construction of a hotel, a green center courtyard and an enclosed parking facility with a total value exceeding $40 million once completed.

Depending on the results of a development evaluation that will take place later this year, construction could begin as soon as the spring of 2020 with the first phase of housing being delivered by the summer 2021.

The Racine Redevelopment Authority will vote on Thursday to approve granting site control to Hovde Properties. The option agreement includes a payment to the Redevelopment Authority of $40,000.

The developer is seeking an option agreement with the Redevelopment Authority to have exclusive rights to the property until April 2020. Officials say the agreement will allow the Redevelopment Authority, the City of Racine, and Hovde Properties time to work together to develop financial terms that would assist in the development of the property as well as conduct engineering studies.