[5] A study commissioned by the Sheboygan Development Corp. estimated the hotel project would require a city subsidy of about $3 million.

The project would have develop further entertainment and tourism opportunity in Sheboygan and expand the State of Wisconsin's economic position in the field of aerospace technology.

In 2009, the Sheboygan Armory Foundation was formed to preserve the building[10] and the group incorporated as a 501(c) non-profit organization in 2013 after plans of demolition were made public.

[11] The first proposal that was public came from The Armory Foundation, which said it would partner with the city in seeking grants, donations and volunteers to help restore the building.

JD Real Estate Investment Partners submitted a proposal to the city to turn the Armory site into multi-family housing.

[13] The company confirmed the Armory would have to be demolished to make room for housing development, saying the building is "functionally obsolete" and would cost too much to refurbish for another use.

However, later that month, the city announced plans to sell the Armory and the eastern portion of the surrounding land to the Sailing Education Association of Sheboygan (SEAS) for one dollar.

The center would be used to house and maintain sailing vessels, run SEAS administrative operations and provide educational opportunities.

As a result, there is a 90-day hold on any demolition permits for the building to give time to explore alternate preservation attempts.

[20] On July 13, 2020, Sheboygan Mayor Mike Vandersteen announced that the Armory would be demolished, with work beginning that week.