A proposed housing project in Sturgeon Bay took another step forward Tuesday, but not without criticism from some of its future neighbors.

The Sturgeon Bay Common Council approved the rezoning of property on Division Road from Agricultural (A) to Two-Family Residential (R-3) and the creation of a planned unit development (PUD) classification. While a related agenda item — a development agreement with DOCO Iron Gate LLC — was tabled for a future meeting, the action does move a proposed 55-lot subdivision featuring a mix of single-family homes and duplexes, along with a condominium development featuring 34 storage units with optional living space, closer to reality.

The development's future neighbors have voiced concerns about a previously quiet area becoming busier with more traffic and activity. Sturgeon Bay Mayor David Ward understands the concerns but says the development addresses a significant need in the city.

The Division Road development is not the only housing project drawing the ire of residents.

The city approved a preliminary plat for a 27.5-acre site near North Eighth Avenue and North 11th Place for a development featuring a mix of workforce housing, market-rate homes and duplexes spread across approximately 72 lots.

Since work began in recent weeks, residents have raised concerns about the property, which was formerly an apple orchard. In one letter to the city, residents asked officials to refrain from blasting because of "significant public safety, property protection, and liability concerns until proper notice, documentation, accountability, and protection for nearby homeowners" are addressed.

More recently, residents expressed concern in a letter to state officials that dust created by the blasting could contain "former orchard soil that has not been tested for lead, arsenic, DDT, pesticide residues, or other historic orchard-related contaminants."