There could be more heads in beds in Sturgeon Bay thanks to a pair of development agreements the city’s common council will consider on Tuesday.

Lexington Homes is proposing to develop an approximately 79-lot residential subdivision on property on the north end of S. Grant Avenue. The city would pay two $1 million payments to Lexington Homes to complete the necessary infrastructure improvements for the housing parcels. The money would come from the city’s newly established tax increment district (TID) to make the project a reality.

Another housing development agreement with Michelle Stimpson would bring a 76-unit apartment complex to the TID. According to the agenda packet, the revenue from this project would help offset the city’s financial obligations for the Lexington Homes project. A maximum of $2.2 million would be returned to Stimpson if her complex can reach certain performance initiatives and reach a minimum assessed value of over $8.36 million.

The city is also trying to finalize a development agreement with Rodac to build a 80-room Hampton Inn hotel at the corner of Egg Harbor Road and 12th Avenue. The city would provide $2 million in financial assistance when the hotel is completed with the minimum assessed value of $13.9 million. The development agreement includes various safeguards if the assessed value drops below that amount. Back in April, the city projected that the project will be able to generate enough to pay back the principal and interest on the incentive. The city’s financial consultant, R.W. Baird, projects that the hotel could actually generate an additional $700,000 that could be used for other projects in Tax Increment #6. 

The Sturgeon Bay Common Council meets on Tuesday at 6 p.m. inside city hall’s council chambers.