Community Development Authority Packet - 10/21/2013
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
AGENDA
October 21, 2013
5:30 PM
Aldermen’s Room – Upper Level of City Hall,
W182 S8200 Racine Avenue
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
STATEMENT OF PUBLIC NOTICE
APPROVAL OF THE MINUTES OF AUGUST 20, 2013.
PUBLIC INPUT
NEW BUSINESS
1. Business Park Grant Fund Request: Royal Recognition (S83 W19105 Saturn Drive)
2. Janesville Road Grant Request: Haven Spa & Salon (S76 W17789 Janesville Road)
3. Janesville Road Grant Request: Thomas Jewelers (S76 W18035 Janesville Road)
4. TIF 8 Loan/Grant Request: Delta Restaurant (S75 W17358 Janesville Road)
5. Janesville Road Grant Request: Mike Fitzgerald Building (S74 W16834 Janesville
Road)
6. Janesville Road Grant Request: Hank Goetzinger Building (S73 W16485 Janesville
Road)
ONGOING BUSINESS
1. Tess Corners Redevelopment District (#1) Implementation
2. Downtown Redevelopment District (#2) Implementation
3. Muskego Business Park Redevelopment District (#3) Implementation
4. Mill Valley Redevelopment District (#4) Implementation
5. Marketing Plan Implementation
MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
1. Redevelopment District Development & Other Miscellaneous Information Updates
2. Next Meeting Date
ADJOURNMENT
NOTICE
IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF
THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE-STATED MEETING TO GATHER INFORMATION; NO ACTION
WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE-STATED MEETING OTHER THAN THE GOVERNMENTAL
BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE.
ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED
INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS
SERVICE, CONTACT MUSKEGO COMMUNITY DEVELOPMENT DEPARTMENT, (262) 679-4136.
Unapproved
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
MINUTES
August 20, 2013
6:00 PM
Aldermen’s Room – Upper Level of City Hall,
W182 S8200 Racine Avenue
CALL TO ORDER
Chairman Lefebvre called the meeting to order at 6:00 PM.
PLEDGE OF ALLEGIANCE
Those present recited the Pledge of Allegiance.
ROLL CALL
Present: Commissioners Larry Lefebvre, Dan Draeger, Ald. Kevin Kubacki, Ald. Robert Wolfe,
and Executive Director Muenkel.
Absent: Commissioners Bonnie Johnson, Robert LeClaire, Bob Mueller
STATEMENT OF PUBLIC NOTICE
The meeting was posted in accordance with the Open Meeting Law.
APPROVAL OF THE MINUTES OF MAY 21, 2013
Alderman Kubacki made a motion to APPROVE THE MINUTES OF MAY 21, 2013.
Alderman Wolfe seconded.
Motion Passed 4 in favor.
PUBLIC INPUT
None.
NEW BUSINESS
Approval of Request for Proposal Document for Former BP Parcel
Alderman Kubacki made a motion to approve the Request for Proposal Document for
Former BP Parcel. Daniel Draeger seconded.
Motion Passed 4 in favor.
2014 CDA Budget
ONGOING BUSINESS
Tess Corners Redevelopment District (#1) Implementation
Downtown Redevelopment District (#2) Implementation
Muskego Business Park Redevelopment District (#3) Implementation
Mill Valley Redevelopment District (#4) Implementation
Marketing Plan Implementation
MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
Redevelopment District Development & Other Miscellaneous Information Updates
Next Meeting Date
Next meeting will be October 15, 2013, unless a meeting is needed earlier.
ADJOURNMENT
Alderman Kubacki made a motion to adjourn at 6:32 PM. Daniel Draeger seconded.
Motion Passed 4 in favor.
Respectfully submitted,
Kellie McMullen,
Recording Secretary
NEW BUSINESS ITEM #1:
Business Park Grant Fund Request: Royal Recognition (S83 W19105 Saturn Drive)
STAFF DISCUSSION
Enclosed, please find our first application for the Business Park Grant Fund Program. The applicant is the business Royal
Recognition which is located on S83 W19105 Saturn Drive. Royal Recognition provides employee-choice service award
programs, promotional items, corporate apparel, incentives, company web stores and safety programs to several hundred
clients worldwide. Royal Recognition is a growing Muskego business and has just recently been approved by the City’s Planning
Commissions for a 11,000 square foot expansion to their facilities. Due to this new expansion Royal Recognition qualifies for the
City’s Business Park Grant Program which allows grants for those businesses looking to enhance existing buildings in the City’s
Muskego Business Park and Redevelopment District #3. The plans for the expansion are attached which show how Royal will be
expanding their presence in Muskego while also enhancing the tax base of the community.
Royal Recognition requests a grant of the maximum amount of $5,000 for their $600,000 worth of improvements and staff
recommends approval of the full $5,000. The $5,000 would come from the City’s Muskego Business Park Fund of which has
balance of over $50,000 as this time. If CDA visits the site they will see how Royal Recognition already takes pride in their site
and building and the new addition to the parking lot and structure will enhance this look and fell. Royal Recognition is a business
that we want other businesses in the park looking up to achieve in how they handle their ground and site. A full submittal and
description can be found in the supplement attached.
The grant program is specifically setup to go towards the purposes below:
The purpose of the Business Park Grant Program is to provide matching grants to new and existing business park buildings and
sites for preservation and renewal. Grant resources should produce visible positive changes to buildings or sites. The goal of
the monies is to foster projects that will aid in making the parks into a better place to do business and hopefully foster other
property owners to take pride and renew their properties or structures as well. Since funding sources are limited, priority will be
given to projects demonstrating the most substantial impact on building and business neighborhood aesthetics.
NEW BUSINESS ITEM #2:
Janesville Road Grant Request: Haven Spa & Salon (S76 W17789 Janesville Road)
STAFF DISCUSSION
Enclosed, please find an application for the Janesville Road Commercial Building & Site Grant Program. The applicants are Tim
and Carley Dillett who owns the property located at S76 W17789 Janesville Road which is opening as Haven Spa and Salon
during this month. The CDA may recall that we recently helped Haven with a Revolving Loan Fund earlier this year to aid in their
startup costs and job creation. Haven now requests a grant of $3,000 for their $16,000+ worth of exterior improvements. A full
submittal and description can be found in the supplement attached.
Project Description:
Full Exterior Painting
Raze Dilapidated Accessory Garage
Install new trim and siding
Re-landscape and Clean up existing Landscaping
Install new Monument Sign
Install new front picture windows and replace rear windows
The grant program is specifically setup to go towards the purposes below:
The purpose of the Janesville Road Commercial Building & Site Grant Program is to provide matching grants to existing
commercial buildings and sites for preservation and restoration. Further, the program is instituted to encourage urban design
excellence, integrate urban design and preservation of Muskego’s heritage into the process of downtown redevelopment, and
enhance the character of the downtown area. Grant resources should produce visible changes to commercial buildings and
commercial sites. Since funding sources are limited, priority will be given to projects demonstrating the most substantial impact
on building and neighborhood aesthetics.
The requested grant amount definitely meets the grant procedure guide in that the proposed improvements will, and have,
produced visible changes in the enhancing the site/structure along Janesville Road. Staff believes that the submittal meets the
purposes set forth in the adopted grant program and recommends a grant approval of the program standard of $3,000.
NEW BUSINESS ITEM #3:
Janesville Road Grant Request: Thomas Jewelers (S76 W18035 Janesville Road)
STAFF DISCUSSION
Enclosed, please find an application for the Janesville Road Commercial Building & Site Grant Program for Thomas Jewelers
and owners Kurt and Gail Fifer. The Fifer’s request a grant of $3,000 for their $67,000+ worth of improvements. The
improvements consist adding a new monument sign, fully redeveloping the site, as well as redoing all the facades/roofing of the
structure.
Project Description:
Installing a new monument sign
Redoing the full site improvements (new landscaping, parking lot, retaining walls, etc.
Redoing all facades of structure including painting, trims, windows, doors, roofing.
The grant program is specifically setup to go towards the purposes below:
The purpose of the Janesville Road Commercial Building & Site Grant Program is to provide matching grants to existing
commercial buildings and sites for preservation and restoration. Further, the program is instituted to encourage urban design
excellence, integrate urban design and preservation of Muskego’s heritage into the process of downtown redevelopment, and
enhance the character of the downtown area. Grant resources should produce visible changes to commercial buildings and
commercial sites. Since funding sources are limited, priority will be given to projects demonstrating the most substantial impact
on building and neighborhood aesthetics.
Due to the property is affected by the Janesville Road project and that extensive visible site improvement are being completed as
part of this project, staff believes that the submittal meets the purposes set forth in the adopted grant program and recommends
a grant approval of the program standard of $3,000.
NEW BUSINESS ITEM #4:
TIF 8 Loan/Grant Request: Delta Restaurant (S75 W17358 Janesville Road)
STAFF DISCUSSION
As the CDA is aware staff has been working with various property owners along Janesville Road in our recently
expanded Tax Increment District #8. This district ran up to the intersection of Janesville Road and Lannon Drive, but
with the CDA’s recommendation the Council amended the district late last year to expand to the west along Janesville
Road down to the DeWinter Eye Care building. The main reason the city expanded the district was to hopefully utilize
the approximate $375,000 in TIF 8 funds we have leftover. Staff and the CDA have been working with the new business
owners in this area and it has been the statement of the CDA in the past that the CDA would look to aid improvements to
sites/structures in this area with these monies in the forms of minimal grants or via low interest loans. While grants are t o
be considered, loans were the most desirable since a loan would be paid back and the monies could then be returned to
close the overall TID 8 while also helping to foster new improvements to sites/structures in the area that would increase
the tax base of the TID as well.
Our first formal submittal to utilize the TIF 8 monies is from Jim Paulos who owns Delta Restaurant at S75 W17358
Janesville Road. Mr. Paulos is in the midst of totally transforming Delta Restaurant into what will be called Gather Eatery
and Bar. Internal renovations are on their way already and Mr. Paulos is now focusing on the external portions of the
property and building.
In all, Mr. Paulos is seeking a loan from the city in the amount not to exceed $75,000 and if the city would also entertain
some form of a grant mimicking the existing Commercial Grant Program the city has in place. The grant and loan
monies would again come from the City’s TIF 8 funds of which has a balance of over $375,000 at this time. The
proposed needs for the loan consist of full site improvements that would include a whole overhaul to the existing parking
lot, add new landscaping, outdoor patio areas, and signage. The loan would also look to fully enhance the existing
structure on all four sides. A new entryway would be in stalled, the building repainted, and new stone veneer would be
added around the entire perimeter. The new site plan and building elevations found in the attached supplement
demonstrate all these proposed changes. The proposed changes should increase the tax base of the parcel while
producing a totally new dining atmosphere for residents of Muskego.
Staff has reviewed the application materials for completeness compared to our usual loan approval processes. Staff has
included in the supplement the loan application, business plan, and site plans. Please note that Mr. Paulos did submit his
personal financials, business projections, and profit/loss sheets which are all a part of the needed submittal for a loan.
SEWRPC is reviewing those for completeness.
The city has always had requested loans be administered by the Southeast Wisconsin Regional Planning Commission
(SEWRPC) initially for review and the same process is being done in the case of this prospective TIF 8 loan. Usually
staff has a letter from SEWRPC outlining the various terms of the proposed loan. Due to timing of hitting this meeting
date that final letter is not in place. In any case, the loan documents submitted thus far show that Mr. Paulos can have
100% collateral to back up the proposed loan. Further, the proposed loan is exactly what the CDA and the Council
expanded the TIF 8 for in the first place in this area which was to encourage enhancements to the existing built
environment in cooperation with the investment the city has made to the downtown and Janesville Road. Lastly, the loan
partnership with the city will hopefully encourage other local landowners to do the same and the investment should help
spur a positive tax base improvement which ultimately helps the TIF.
In all, staff recomm ends approval of the loan subject to SEWRPC outlining the final terms before Council review and that
collateral should equal 50% of the final loan amount (50% is what the city has always approved in the past). Further that
the loan approval is subject to a 5 year or less term which should be good for the TIF. Seeing that the project more than
qualifies for the parameters of the City’s Commercial Grant Program and that Mr. Paulos has requested some sort of
grant monies from the city as part of this deal, staff recommends that we award $7,500 in grant monies for the project
while approving the maximum loan amount up to $75,000 as well. Given the caliber of the project that is being proposed
the associated grant monies more than qualify when comparing a grant of this a size to the parameters of the City’s
usual Commercial Grant Program. All monies again coming from the $370,000+ TIF 8 balance.
The site and structure improvements are all subject to Planning Commission approvals as well and the Planning
Commission will meet on Tuesday November 5th regarding this issue.
NEW BUSINESS ITEM #5:
Janesville Road Grant Request: Mike Fitzgerald Retail Building (S74 W16834 Janesville Road)
STAFF DISCUSSION
Enclosed, please find an application for the Janesville Road Commercial Building & Site Grant Program. The applicant is Mr.
Mike Fitzgerald who owns the retail building and property located at S74 W16834 Janesville Road. Mr. Fitzgerald requests a
grant of $3,000 for his $17,295 worth of improvements. A full submittal and description can be found in the supplement attached.
The improvements consisted of the following:
Install a new pedestrian pathway from the rear parking lot to the businesses spaces along the Janesville Road facade
Install a new cedar board on board dumpster enclosure
Redo portions of the asphalt parking lot
Paint the Janesville Road façade overhangs
Install a new retaining wall along the northern property line that previously was failing
Install new stone benches and planters along the Janesville Road frontage to establish an outdoor seating and retail area
for the Janesville Road tenants.
The grant program is specifically setup to go towards the purposes below:
The purpose of the Janesville Road Commercial Building & Site Grant Program is to provide matching grants to existing
commercial buildings and sites for preservation and restoration. Further, the program is instituted to encourage urban design
excellence, integrate urban design and preservation of Muskego’s heritage into the process of downtown redevelopment, and
enhance the character of the downtown area. Grant resources should produce visible changes to commercial buildings and
commercial sites. Since funding sources are limited, priority will be given to projects demonstrating the most substantial impact
on building and neighborhood aesthetics.
As the CDA may recall, the City of Muskego has awarded a $3,000 grant for Mr. Fitzgerald for this property when he operated
“Jill’s Cleaners” here back in 2011. The past grant approval was given for painting all the existing block walls, tuck pointing
exterior walls, re-stuccoing/painting exterior walls, and for repairing various places in the asphalt parking lot. The procedures of
the award program allow someone to apply up to once a year and this new application is allowable.
After review of the application staff believes that a grant is again warranted as visible improvements are being made to the
Janesville Road portions of the building and site. However, a few of the noted improvements are more or less maintenance
items that staff feels does not fit the nature of the grant program. Replacing the parking lot asphalt and installing the new
retaining wall are a couple of these items that are normal to a commercial site’s maintenance. Further, the need for a dumpster
enclosure is required by code for a commercial use in Muskego. However, improving a dumpster enclosure with nice board on
board cedar siding is a nice upgrade.
In all, staff recommends a grant up to $2,053.50 which consists of:
50% of the pathway $1,002/2 = $501
50% of the fascia repainting $528/2 = $264
50% of the stone benches/planters $1,100/2 = $550
50% of half the dumpster enclosure costs $2,954/2/2 = $738.50 (the costs for the dumpster enclosure show to
be $2,954 but staff is recommending we would help with 50% of only half these costs since a dumpster
enclosure is required by code already, but the petitioner is looking to upgrade the look of the dumpster enclosure
thus making this expense somewhat grant approvable)
NOTE: Plan Commission approval will be required to set the guidelines up for the outdoor retail area along the Janesville Road
frontage area of the site.
NEW BUSINESS ITEM #6:
Janesville Road Grant Request: Hank Goetzinger Retail Building (S73 W16485 Janesville Road)
STAFF DISCUSSION
Enclosed, please find an application for the Janesville Road Commercial Building & Site Grant Program for Hank Goetzinger and
the retail property/structures he owns and operates around the address S73 W16485 Janesville Road (Buildings with Bumper to
Bumper, Blue Knight Driving School, Muskego Insurance Services, Chung’s Blackbelt Academy etc. within them).
Mr. Goetzinger requests a grant of up 50% of his costs and is showing costs totaling $12,680 which include the following:
Install a new access approach off of Janesville Road $7,605
Install new asphalt for parking lot stemming from new access approach plus re-striping of parking lot $4,075
Waukesha County Permit Fee for establishing a new access to Janesville Road Up to $1,000
The grant program is specifically setup to go towards the purposes below:
The purpose of the Janesville Road Commercial Building & Site Grant Program is to provide matching grants to existing
commercial buildings and sites for preservation and restoration. Further, the program is instituted to encourage urban design
excellence, integrate urban design and preservation of Muskego’s heritage into the process of downtown redevelopment, and
enhance the character of the downtown area. Grant resources should produce visible changes to commercial buildings and
commercial sites. Since funding sources are limited, priority will be given to projects demonstrating the most substantial impact
on building and neighborhood aesthetics.
Mr. Goetzinger’s property was very hampered by the Janesville Road Phase 1 construction. Previously the property had another
row of parking and multiple access points. Since the construction Mr. Goetzinger has been trying to work with the County to
reestablish more room for parking and to try and get another access point from Janesville Road installed. Mr. Goetzinger now
has quotes to re-establish another access point off of Janesville Road, and to re-stripe his lot to allow more parking like it used to
have (see site plan herein). On a side note, Mr Goetzinger is also trying to establish a better access off the back of his property to
Bay Lane Drive for his various tenants.
The grant program allows up to $3,000 initially but does state that more than $3,000 can be allowed by the city per the following:
NOTE: While the grant amount stated above has a maximum of $3,000 allowed, actual amounts approved are subject to
change by the approval of the CDA and Common Council on a case-by-case basis. Examples of allowing more than the
stated maximum amount may include projects that demonstrate a benefit to the community and the surrounding area,
projects that may set the tone for an area, projects that may be a catalyst for other redevelopments/developments in the
area, and/or projects providing a considerable percentage match above the needed minimum of 50%.
Due to the property and its associated businesses/tenants being heavily affected by the Janesville Road project and due to the
proposed project establishing better business access, staff believes that the submittal meets the purposes set forth in the
adopted grant program to allow more than the initial $3,000. Staff suggests that we allow a $4,000 grant for the construction
project costs. The project costs total $11,680, thus a $4,000 grant results in a 34% match of the total project costs. Seeing that
Waukesha County has shown Mr. Goetzinger that a simple permit to open a new access may be upwards of $1,000 staff
recommends that the City also cover any permit costs up to $1,000 as well. Staff intends to talk to the County to get some or all
of these permit fees waived in hopes of the County participating in this partnership with a business that was affected by the
County road project. However, staff is unsure if the county will participate and thinks that this permit fee is definitely a separate
eligible cost the city can aid in.
Recommendation: Grant approval of $4,000 + up to another $1,000 for any Waukesha County permit costs.
ONGOING BUSINESS ITEM #1:
Tess Corners Redevelopment District (#1) Implementation
STAFF DISCUSSION
Nothing new to report other than that the new banners should go up next spring.
ONGOING BUSINESS ITEM #2:
Downtown Redevelopment District (#2) Implementation
STAFF DISCUSSION
TIF 8 Funds: Staff is continuing to work with the area business in the amended TIF 8 area. Hopefully the Delta Restaurant
improvements will spur more partnerships like it.
Development of Former BP Parcel: Staff will report what has taken place since we sent out the Request For Proposals at our last
meeting.
ONGOING BUSINESS ITEM #3:
Muskego Business Park Redevelopment District (#3) Implementation
STAFF DISCUSSION
Business Retention and Expansion: Staff is continuing to work with a few key businesses that are looking to expand in Muskego
in the near future. Information regarding the various expansions was found after we sent out our Business Retention and
Expansion surveys earlier this year.
ONGOING BUSINESS ITEM #4:
Mill Valley Redevelopment District (#4) Implementation
STAFF DISCUSSION
No movement is taking place with the quarry in New Berlin, thus there are no updates at this time from Muskego’s side.
ONGOING BUSINESS ITEM #5:
Marketing Plan Implementation
STAFF DISCUSSION
Here is a list of the many items currently being worked on as part of the Marketing Plan. Staff will review some of these in more
detail at our meetings as time allows.
Business Contact List & Database: This database is basically complete but always being updated and new attribute
fields being added. In the near future, staff will show the CDA the wealth of info we have compiled which helps us act
fast in a number of ways from direct mail needs to helping business to business connections for supply/demand
needs right here in the community.
Business Retention Survey/Visits: As mentioned above we have completed the 2013 yearly Business Retention
Surveys to area businesses and follow up for those indicating expansion potential is taking place. Further, the Mayor
and Jeff continue our monthly business visits to see area business needs and what they do.
TIF Leverage: The recent Northern Gear approval has definitely helped put Muskego on the map as a place to do
business. We have received calls from area brokers on how we may be able to leverage our TIF for other businesses
to move and expand here.
Target Industry’s and Site Selectors: The Marketing Plan goes into detail that three target industries are ripe for
Muskego based on many factors. Those target industries are Transportation/Warehousing, Manufacturing, and FIRE
– Financial, Insurance, & Real Estate. Staff acquired a Site Selector list (essentially a list of the brokers responsible
for locating these types of businesses in southeastern WI) for these target industries, graphically designed in house
target industry sheets (essentially ads of why Muskego is a great place to do business for a particular target
industry), and sent this info out to the site selectors along with over 400 Northern Illinois businesses that meet the
target industries. Specific data on opportunity sites in the Moorland corridor was also sent. These types of
marketing hopefully will drive more attention moving business to Muskego. This will be done yearly as well.
GoMuskego Marketing: The GoMuskego binder and excel data file grew considerably over the past months. Staff
met many new franchises expanding in the WI area at the Global Retail Conference in the past month and Muskego
data was sent to those individuals over the past month.
Implementation: Staff keeps a large implementation digital spreadsheet that keeps track of all the items we
implement per the recommendations of the Marketing Plan. This spreadsheet was overhauled recently and provided
a wealth of info on the items the city has pursued over the last 8 or so months. A separate binder of hard copy
information is kept as well detailing the many marketing letters and graphics we have put together over the life of the
plan. Staff will share this info with the CDA from time to time.
MISC. BUSINESS ITEM #1:
Redevelopment District Development & Other Miscellaneous Information Updates
None.
MISC. BUSINESS ITEM #2:
Next Meeting Date
Tuesday December 18th at 6 pm unless an earlier date is needed for any grant/loan requests.
Approximate CDA Budgets
2011 Budget Existing
Supplies and Expenses $500
Professional Services $3000
Attorney $5000
Property Sale Balance $91,000
Existing
RLF Fund Balance: $330,000+
Existing
RD #3 Balance: $52,248.03
TIF Residual Balance: ~$375,000
TIF 8 Balance: ~$375,000