City Council approves agreement for apartment buildings near River Bend Trail

At its regular meeting on Aug. 12, 2025, the Merrill Common Council approved a development agreement to transfer a city-owned parcel at 401 S. Kyes Street in Merrill near the River Bend Trail to VanHoffKo – The River, LLC, following a positive recommendation from the City’s Redevelopment Authority. The motion was introduced by District 3 Alderperson Nathan Meyer, seconded by District 4 Alderperson LaDonna Fermanich, and passed unanimously. Closing is set to take place on or before Oct. 31, 2025. The development is being called “The River” project.

Agreement specifics
The land in question lies within Tax Increment District No. 9 (TID No. 9), which the City created to foster under-utilized land redevelopment, job creation, and tax-base growth. Under the Purchase & Development Agreement, the City will convey the property by Quit Claim Deed for $1 and, in exchange, the developer will build a multi-family complex consisting of three apartment buildings of no fewer than 20 units each, plus a common-area building, parking, landscaping, and other site improvements. The development is part of the City’s efforts to combat the housing shortage in Merrill.
Construction of the first apartment building must be completed by June 1, 2027, and achieve a minimum assessed value of $2.7 million. Later phases must meet similar value thresholds and occupancy gates (80% occupancy for the second and third apartment buildings and 60% occupancy for the common-area building) by their respective deadlines.
The City is providing a $70,000 Direct Business Assistance Grant to support site preparation for the first building, payable after completion of the site work on the development site and installation of utilities. That site preparation must be completed by Dec. 30, 2026, to claim the grant.

Three additional incentive payments of $160,000 each will be payable upon completion of each of the three apartment buildings, if they meet the value benchmarks, and must be claimed by Dec. 31, 2032. If assessed values fall short, the incentive is reduced proportionally.
Building one is scheduled for completion by June 1, 2027, with buildings two and three scheduled for completion by Dec. 31, 2028, and Dec. 31, 2030, respectively. Construction of each subsequent building relies upon achieving an occupancy rate of at least 80% at the prior-built facility to demonstrate continued need for additional housing.
A fourth facility, referred to as a common area, together with parking, other paved areas, fencing, and other improvements, is also planned for completion no later than Dec. 31, 2030.
The developer must provide a $270,000 irrevocable Letter of Credit at closing, maintain builder’s risk and property insurance, grant necessary utility and public-improvement easements at no cost to the City, and keep the property taxable (no transfer that renders it tax-exempt is permitted). If construction ceases for 90 consecutive days, or if milestones are missed, the City has the option to repurchase the unbuilt portion for $1 plus the market value of improvements.
The agreement’s term extends through Dec. 31, 2035, and all work must comply with City approval of site plans and ordinances. Notably, the developer is acquiring the property “as-is,” with no warranties from the City regarding site conditions or environmental matters.

Developers and background
The developer is VanHoffKo – The River, LLC, a Wisconsin limited liability company with its principal place of business at 505 S. 24th Ave., Suite 102, Wausau, and the managing member and registered agent of the LLC is Derek M.T. Hoff.
Local impact
The site sits near Merrill’s River Bend Trail corridor. Tyler’s Playground — a small city-owned park near the trail — was removed to clear the way for the development. City officials say the project moves a key vacant parcel into productive use, delivers new rental housing, and aligns with the goals of TID No. 9.
A key presentation/groundbreaking ceremony for “The River” project is set to take place Thursday, Oct. 23, 2025, at 1:30 p.m.