"The alternative was to tear it down, so just let that sink in." Green Lake Mayor Ray Radis said that to the Committee of the Whole ahead of the Sept. 28 public hearing, as reported by the Ripon Commonwealth Press. He was talking about the Heidel House at 653 Illinois Ave.
The plan that came out of that meeting keeps the historic hotel standing. It does so by splitting the property into lots, and each lot would be owned under its own rules. If the plan goes through, the Heidel House shoreline would be split three ways: vacant waterfront lots, condo-hotel units in a resort rental pool, and the hotel itself. A buyer could own either of the first two, and they come with very different obligations. A condo unit and a single-family lot on the same property would answer to different parts of the city's rental rules. A tax incremental district created for the hotel's earlier renovation would stay attached to the land through all of it.
Why the resort is being taken apart
The math explains the plan. Mark Franzen of Green Lake Hotel Group told the committee that the group bought the Heidel House in 2020, after it had been closed for two years. They paid about $6 million, spent $8 million on renovations, and the management group has put in another $7 million over the past five years. Franzen said the hotel is assessed at $18 million and has generated $800,000 in taxes and $700,000 in occupancy taxes for the city. He also said it does not bring in enough revenue to survive in its current form.
"It's not economically viable in its present form," Franzen said. "We need it to be reimagined."
The reimagining splits the property between two companies. Green Lake Hotel Group keeps the single-family side. Everest Hospitality, LLC, led by Lance Schaefer, has a purchase agreement for Lots 1 and 2, which hold the hotel. That agreement closes only if the city approves his development plan. Schaefer told the Plan Commission that new construction costs and the resort's seasonal business make a much larger traditional hotel a weaker bet than his plan for fewer, larger units. He described those units as "somewhat fewer," and said each one would bring in more money because it is bigger.
That trade-off drives everything below. The redevelopment pays for itself by selling pieces of the property to private owners. What a private owner gets depends on which piece they buy.
The three products, side by side
| Waterfront homesite | Condo-hotel unit | Hotel room | |
|---|---|---|---|
| Who controls it | Green Lake Hotel Group | Everest Hospitality, LLC | Everest Hospitality, LLC |
| How many | 20 single-family homes with private pools | 9 in a new addition, about 40 in a separate building | 41 rooms in the existing Heidel House |
| What a buyer gets | A lot to build on | A furnished unit run by the resort | A booking |
| Water access | 20 DNR-permitted private piers proposed | Shared resort waterfront | Shared resort waterfront |
| Rules if rented | City short-term rental rules | Hotel and daily-rental rules | Hotel and daily-rental rules |
The home and pier counts come from the Sept. 28 Council hearing. The unit counts and the split in rental rules come from the Plan Commission presentation.
A condo built to stay in the rental pool
The condo-hotel unit is the one that will surprise most lake buyers. According to the Ripon Commonwealth Press account of the Plan Commission meeting, buyers could purchase the new units privately, but the units would stay tied to the resort's rental operation.
The condominium documents would push owners toward the rental program. Owners would be allowed to live in their units year-round. Schaefer said, though, that the fees and rental-program requirements would make full-time private use less attractive. Owners also could not furnish their units themselves or market them outside the resort's system, because the resort keeps control of furnishings and equipment so every guest has the same experience. Rental income would be pooled. Schaefer described this as a model some other resorts use to address complaints about how rental nights get rotated among owners.
The design follows from who is renting. Schaefer told the commission that travelers increasingly want "a couple of bedrooms" and a kitchen. He said a unit that sleeps eight or more can compete with booking three or four hotel rooms. The resort earns more when those units are booked, and the city collects room tax on that revenue. Schaefer said room tax applies to transient rental revenue, not to the nights an owner stays in the unit or nights it sits empty. Under this structure, a condo-hotel buyer is mostly buying a share of the resort's room inventory. The lake view comes with the unit, but the resort controls how it is furnished, marketed and rented.
The homesite comes as an empty lot
The single-family side works the other way. At the Committee of the Whole, Schaefer said Green Lake Hotel Group plans to sell lots, not finished homes, so that part of the project could take longer than the hotel work. A buyer would get land, a proposed private pier, and the job of building the house.
That buyer would also fall under different rental rules. At the Plan Commission, members separated the resort-operated units on Lot 1 from the individual homes on Lot 4. The homes would be subject to the city's short-term rental rules if owners rent them that way. The city's code, available in Title 7 of the Green Lake municipal code, defines a short-term rental as a residential dwelling rented for a fee for fewer than 29 consecutive days. It requires:
- A City short-term rental license
- A Wisconsin Tourist Rooming House license
- A state seller's permit
- A City room-tax permit or marketplace-vendor certification
- A conditional use permit for new rentals, under a provision effective Sept. 20, 2024
New rentals in residential districts generally must be booked for at least seven consecutive days. Owners of short-term rentals in residential districts that are not grandfathered must live on the premises at least 30 days a year. The city's short-term rental application lists a $500 fee. It caps occupancy at the state-licensed total or two people per bedroom plus two, whichever is less.
The homesite gives an owner the most personal control over the house and the least flexibility as a nightly rental. The condo-hotel unit gives the reverse. This is a summary of public rules, not legal or tax advice. Anyone weighing either option should confirm the details with an attorney, an accountant and the city.
The homesites drew the most debate at the Sept. 28 hearing. Residents who spoke in favor still asked the city to protect walkability, trail connections and public lake views. Some asked for screening, buffers, and limits on noise and lighting. Opponents questioned the proposed 50-foot shore yard setback and whether the development should meet the same standards as other lakefront owners. The Council then approved the ordinance adding a planned unit development overlay at 653 Illinois Ave. on a 4-0 roll-call vote.
The tax district stays with the land
One obligation stays with the property no matter how it is divided. When the city's original developer's agreement with Green Lake Hotel Group was released, the Ripon Commonwealth Press reported that the city would reimburse the developer 60% of eligible project costs, up to $3 million. To repay the debt that created, the city planned a tax incremental district, TID No. 5, covering the property. The group's tax-increment payments were to begin in 2023 and continue until the city's debt was repaid, which the agreement projected for 2048.
At the Plan Commission, Mayor Radis said the district would stay in place while the parties work out who is legally responsible for repayment under the new ownership. At the September hearing, a speaker asked whether those obligations would keep being met once individual parcels are sold. The question matters for buyers because the repayment plan assumed one owner paying on one property. That property is being split up for sale.
Where approvals stand this week
- Before the hearing. Franzen and Schaefer present the plan to the Committee of the Whole as an information item, with no action taken.
- Sept. 28. The Council holds a public hearing and approves the PUD overlay ordinance 4-0.
- October. The Plan Commission votes unanimously to send Everest Hospitality's plan for Lots 1 and 2 to the Common Council.
- Oct. 26. A special Council agenda includes a public hearing on Everest Hospitality's resort plan, a PUD overlay ordinance, and a certified survey map creating a new Lot 5 from Lots 1 and 4.
- Nov. 9. That agenda lists Nov. 9, 2026 for future agenda items.
The city's agendas and minutes page is where the official record of each vote is posted. At the Committee of the Whole, Schaefer said that if every approval came through, demolition could begin as soon as mid-October, with hotel functions finished in late 2027. He also said the hotel's docks would be improved so boaters can tie up more easily and walk to the restaurants.
A few quick questions
Is the Heidel House open now? The Heidel House website is taking hotel reservations and promotes Waves Pub and Grill, restaurant dining, events and weddings. Franzen said the property has 11,000 square feet of event space and is meant to stay a year-round community focus.
Will Green Lake lose hotel capacity? At the September hearing, Mayor Radis said, "There's going to be 90 rooms when all this is done." That total counts the 41 existing rooms, the 9-unit addition and the 40-unit condo building. Schaefer has said there will be somewhat fewer units than before, and that the larger units are meant to earn more.
Why does the wedding site stay where it is? Schaefer said the new outdoor pool will move slightly east and the pool deck will sit 10 feet farther from the shoreline. That keeps the waterfront ceremony site, now a popular wedding venue, intact for guests.
If you're deciding between a homesite, a resort-managed unit and a traditional lakefront home on Green Lake, our team can walk you through how the ownership rules compare. Better Homes and Gardens Real Estate Special Properties follows these approvals from Green Lake and Ripon. Get the Special Advantage — Talk with our team today.
