Phelps is a rural community with approximately 1,285 people, with a median age of 60 years. The largest share of residents earn between $50,000-$75,000, and most people have a high school diploma or have some college education.
The median home value is $339,000, which is on par with Vilas County but higher than other surrounding counties. A large number of homes are occupied by seasonal residents, which makes the vacancy rate look higher than it actually is.
New home construction has been down significantly since 2010, whereas over the previous decades, there were new housing starts that kept up with the demand.
The Town acquired the large, 5.5-acre former hospital site, which sits in a prominent location east of Highway 17 overlooking North Twin Lake. At the time of the study, the site hosted a blighted building. The community applied for and was awarded a grant from WEDC to demolish the building to encourage the redevelopment of the site.
According to market research, the Town of Phelps is comprised of members of the Tapestry segment “Rural Resort Dwellers”. These descriptors provide psychographic snapshots of the population and describe ways each segment spends its time and disposable income. According to this segment, residents are blue-collar workers, near retirement age, and are passionate about their hobbies, like freshwater fishing and hunting. Also, housing is owner-occupied, single-family homes, with some mobile homes. A strong market for second homes, these rural areas contain homes valued near the U.S. median.
Market data also shows an opportunity for restaurants, grocery, hardware and recreation/sporting goods, as well as a hotel. Stakeholder feedback supported these uses and stressed they did not want to see the site developed with a gas station, dollar store, or rental housing.
Recommendations for the site include market-rate condominium/townhomes (owner occupied), a retail component featuring grocery, hardware, home goods, and a potential hotel. The total potential new value of this combined development would range from $10,000,000 to $52,000,000.
