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Phelps bluff redevelopment project demolition, site planning, underway

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Demolition of the former Lillian Kerr Hospital/health care center on Highway 17 in Phelps continues, with plans for site development starting to get underway.

In April, the Vilas County Economic Development Corporation (VCEDC), on behalf of the Town of Phelps, received a $24,900 grant from the Wisconsin Economic Development Corporation (WEDC) Thrive Rural Wisconsin Program to hire an architectural firm to develop renderings and a site plan for the site of the health care center, located on a 5.2 acre bluff overlooking North Twin Lake. The grant represents the second half of the $50,000 Thrive Rural Wisconsin Grant awarded to the VCEDC for the Phelps redevelopment project.

Recommendations for the redeveloped site include market-rate condominium/townhomes (owner occupied), a retail component featuring grocery, hardware, and home goods, and a potential hotel. The recommendations, architectural renderings, and site plan need final approval from the Town of Phelps.


“The Vilas County Economic Development Corporation, on behalf of the Town of Phelps, has been delighted to work in partnership with the WEDC Thrive Rural WI Program and the Town of Phelps on this project. The WEDC Program has been a game-changer for us, to be able to access the funds and resources to support the Town of Phelps in redeveloping the former Lillian Kerr hospital/health care center 5-acre site overlooking North Twin Lake,” said VCEDC Executive Director Kathy Schmitz. “As a result, the grants that we have received to date have led to the development of a market/site analysis, selection of an architectural firm, and demolition project. We greatly appreciate the support the WEDC leadership continues to provide to help ensure that our rural communities in Vilas County and throughout Wisconsin thrive. The new development will help meet the needs of the community and be a destination for area residents and visitors.”

The demolition is being managed by C&D Excavating in Merrill. The demolition is expected to be completed in June. The architectural firm is Wisconsin-based Cedar Corporation.

More information can be found by visiting the VCEDC website at vilascountyedc.org.

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