Community Development Authority Packet - 1/21/2014
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
AGENDA
January 21, 2014
6:00 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 AND OCTOBER 21, 2013.
PUBLIC INPUT
NEW BUSINESS
1. Recommendation of Approval for Development of Former BP Gas Station Parcel: John
Jewell Request.
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
Unapproved
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
MINUTES
October 21, 2013
5:30 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, Ald. Kevin Kubacki, Ald. Robert Wolfe, Bonnie
Johnson, Robert LeClaire, and Bob Mueller and Executive Director Muenkel.
Absent: Commissioner Dan Draeger
STATEMENT OF PUBLIC NOTICE
The meeting was posted in accordance with the Open Meeting Law.
APPROVAL OF THE MINUTES OF AUGUST 20, 2013.
PUBLIC INPUT
NEW BUSINESS
Business Park Grant Fund Request: Royal Recognition (S83 W19105 Saturn Drive)
Alderman Kubacki made a motion to approve the Business Park Grant Fund
Request: Royal Recognition (S83 W19105 Saturn Drive) in the amount of $5,000.
Robert LeClaire seconded.
Motion Passed 6 in favor.
Janesville Road Grant Request: Haven Spa & Salon (S76 W17789 Janesville Road)
Robert LeClaire made a motion to approve the Janesville Road Grant Request:
Haven Spa & Salon (S76 W17789 Janesville Road) in the amount of $3,000. Bonnie
Johnson seconded.
Motion Passed 6 in favor.
Janesville Road Grant Request: Thomas Jewelers (S76 W18035 Janesville Road)
Robert LeClaire made a motion to approve the Janesville Road Grant Request:
Thomas Jewelers (S76 W18035 Janesville Road) in the amount of $3,000. Alderman
Kubacki seconded.
Motion Passed 6 in favor.
TIF 8 Loan/Grant Request: Delta Restaurant (S75 W17358 Janesville Road)
Alderman Wolfe made a motion to approve the TIF 8 Loan/Grant Request: Delta
Restaurant (S75 W17358 Janesville Road) per staff recommendation subject to
collateral equaling 100% of the final loan amount. Bob Mueller seconded.
Motion Passed 6 in favor.
Janesville Road Grant Request: Mike Fitzgerald Building (S74 W16834 Janesville Road)
Bob Mueller made a motion to approve the Janesville Road Grant Request: Mike
Fitzgerald Building (S74 W16834 Janesville Road) in the amount of $2,160.38. Bonnie
Johnson seconded.
Motion Passed 6 in favor.
Janesville Road Grant Request: Hank Goetzinger Building (S73 W16485 Janesville Road)
Alderman Wolfe made a motion to approve the Janesville Road Grant Request: Hank
Goetzinger Building (S73 W16485 Janesville Road) in the amount of $4,000 and up to
another $1,000 for any Waukesha County permit costs. Bob Mueller seconded.
Motion Passed 6 in favor.
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
ADJOURNMENT
Alderman Kubacki made a motion to adjourn the meeting at 6:15 PM. Alderman
Wolfe seconded.
Motion Passed 6 in favor.
Respectfully submitted,
Kellie McMullen,
Recording Secretary
NEW BUSINESS ITEM #1:
Recommendation of Approval for Development of Former BP Gas Station Parcel:
Request by Local Business Owner John Jewell
STAFF DISCUSSION
Background
Enclosed please find a proposal to purchase and develop the City owned former BP Gas Station parcel that the city now owns on
the SW corner of Lannon Drive and Janesville Road. As the CDA may recall the city took purchase of this parcel late last year
from Waukesha County under the terms that the city should not profit from the parcel or any profits would have to be turned over
to the county. The Common Council has put the parcel in the care of the CDA to seek development proposals and to ultimately
recommend a development proposal to the Council when an appropriate development comes in. This parcel is within the CDA’s
Redevelopment District #2 as well as the City’s Tax Incremental Finance District #8 (TIF). Given that the parcel is in the TIF the
city has TIF monies that we can work with to aid appropriate development as well as aid in any clean-up costs, costs in getting
the parcel pad-ready, and costs in regards to needed grants/loans for a developer. The city’s main goal has been to get this
parcel developed and back on the tax roll as soon as possible while assuring that any development meets the goals for the
Redevelopment District and the future view of how we want the downtown to develop.
Tonight, if the CDA desires, we would be looking for a recommendation of approval to the Common Council. Upon that, the
Council would then take up a developer’s agreement outlining the contingencies of a sale. Further approvals would still be
required from the City’s Planning Commission and a possible rezoning.
Proposal
The proposal tonight comes from Mr. John Jewell who owns a couple Muskego businesses at this time. Mr. Jewell full owner of
Jewell Homes LLC and part owner of R & W Realty company. Both of these businesses currently operate out of the office
building on Racine Avenue (across the street from Piggly Wiggly). Per the proposal it is Mr. Jewell’s intent to build a new 4,288
square foot structure situated up close to the corner of the property and have the parking behind. The building is shown to have
up to three tenant spaces and Mr. Jewell is showing that the spaces are already spoken for in the form of moving Mr. Jewell’s
current business office to one, moving Frenz Hair & Nail Salon (currently operating in the office building across from Piggly
Wiggly as well) to one, and opening a spot for a new Muskego business called Destiny Chocolates.
Redevelopment District & Design Guide
This area of the city is within the confines governed by the City’s Redevelopment District #2 and the Downtown Design Guide.
The city was hoping to meet many of these principles in approving a future development for this parcel. The Design Guide looks
to promote the same characteristics as the Redevelopment District including, but not limited to, the following principles:
Enhance the image, profile, and use of downtown Muskego
Provide a new sense of place with a downtown identity
Demonstrate market driven principles that work within the economic landscape of Muskego
Provide the downtown area, and indeed the entire community, with an identity that adequately reflects the local quality of
life and the affluence of City households
Promote the following types of uses:
Design Character
Traditional town center/modern ‘main-street’
Buildings squarely facing the street
Buildings closer to street, parking behind
Pedestrian scale – walkable, accented storefronts
Taller building profiles – downtown centerpoint and landmark
Variable roof-lines
Transitional massing blending with surrounding architecture
Sense of place/downtown identity
Use Mix
Possible upper end condos (professionals & ‘empty nesters’)
Destination and convenience retail (no ‘big boxes’)
Smaller floor plate retail
Shared parking
Multiple purpose trips
Convenience
Density
Possible Mid-Rise heights: Somewhat higher than City norm
Built in consumer market for downtown businesses
Greater TIF revenues
More efficient public services/utilities
Interconnected activity centers
Downtown anchor and landmark
Architecture & Site Plan
The architecture and site planning proposed meets and exceeds the Downtown Design Guide in many ways. Per the guide:
Buildings are to be harmonious with their natural and built surroundings, avoiding repetition and monotony, utilizing
materials which reflect a residential character, have four sided architecture, have 50% masonry product used, and the
coloring of all brick, decorative masonry or stone shall be expressed as integral to the product and not painted on the
surface of said product.
Colors are to be earth tones
Screening of any rooftop mechanicals and outdoor storage/refuse should be completed.
Parking areas should be screened if possible
Landscaping should be ample in around foundations and perimeters.
Signage should be designed in unity with the proposed building.
Cross access between properties should be accomplished if possible.
The building proposed is comprised of four sided architecture with over 50% masonry product used. The building is situated up
close to Janesville Road with parking behind. The building is comprised of the following materials: dimensional asphalt shingles,
smart board trim and siding, and cultured stone. The architecture of the building shows multiple variations in the rooflines and the
various facades have altering depths. Window treatments are found on all sides of the building and variations in sizes of the
windows present unique aspects. The building is designed to have focal points and high points in the facades along the
Janesville Road and Lannon Drive sides.
Overall, staff believes that the architecture does meet the local design guide fairly well and does recommend approval via the
CDA and Council perspective. However, staff does see that Planning Commission may want to add a bit more detail to make the
structure looking more commercial in nature. Such additions may include adding dormers over the business entrances supported
by pillars, adding a couple more main bump outs on the west and south facades like we see on the north and east facades,
possibly elongating the windows (with spandrel glass if needed) on the main bump out areas down to grade, and possibly adding
more fake architectural soffit support elements (like we see in craftsmen/prairie architecture). Another idea would be to go to a
metal roof if the developer would see financially fit.
The building is situated on the site to maximize the property as the building shows setbacks from the front property lines of up to
10 feet. A rezoning to the City’s DR-1 Downtown Revival District would be required as part of this approval. Staff sees no issue
with the allowance of this rezoning as long as the appropriate procedures are followed.
The site is laid out to share cross access with the Jerome Drugs building property to the south. This shared access will aid in
safety in not putting anymore burden of traffic on Lannon Drive. Further the cross access will allow more landscaping detail on
the site to be included. The site has the appropriate widths and requirements for parking and fire access to the proposed
structure. Some pf the parking areas are a bit closer to property lines than some ordinances allow, however, Planning
Commission can waive these in certain circumstances. In the case of this parcel there will be cross access easements and
shared maintenance areas with the property owner to the south.
Area is shown for a refuse enclosure and for the appropriate needs for lighting. One unique note of the site plan is that the
proposal shows the extension of the city’s pathway from Janesville Road connecting to their front entrance of the building. The
city may have this trail extend further down Lannon Drive in the future and adding this to the proposed site plan helps the city in
the future planning of this pathway. Easements for cross access and for the rec trail would be requirements of the future
Planning Commission approval.
The proposed landscape plan really brings this whole site plan together by providing ample foundation and perimeter plantings.
One focal point of the landscape plan shows that the developer is looking to create an outdoor patio area for the tenants that
would line up well with the city’s main downtown intersection of Janesville/Lannon. Creating areas where the public are viewed
from passersby always help to provide a more vibrant and inviting downtown.
Parcel Costs
As mentioned, the city cannot make any profits on the sale of this parcel. The request for proposals simply stated that the city
was interested in recouping their costs into purchasing the property ($2,500 purchase price from county, various environmental
investigation costs, attorney fees, etc.). Staff estimates that the city has spent approximately $7,851.50 and envisions up to
$2,000 more until a closing would occur for a total of approximately $10,000.
Mr. Jewell has expressed that he would purchase the parcel for any costs the city has into the project at the time of his
acquisition. Mr. Jewell would then deposit another $20,000 with the city that the city would hold in escrow and be able to keep in
the event Mr. Jewell defaults on the development. This would be written up in the developer’s agreement.
Financials & Incentives
When the city put this parcel out for development proposals it was well documented that the city would entertain taking care of
possible development costs not normal to development of a pad-ready site. In regards to this site it was known that the site has
possible contaminated soils leftover that may have to be remedied, at a cost, depending on what level of development is
proposed. Further, remnant concrete from the foundations of the former gas station would need to be removed. Mr. Jewell, per
the narrative, has run calculations and has found that he may require up to $8,380 for increased costs relating to removing
contaminated soils and up to $600 for costs relating to removing old concrete foundations in order to get the site pad-ready. As
part of the proposal Mr. Jewell would request that the city would pay for these costs as part of a developer’s agreement. A
developer’s agreement usually would outline that the city would pay for these costs, via the existing TIF monies, up to those
threshold amounts. We would essentially reimburse Mr. Jewell for those costs upon him providing paid invoices.
Being that this parcel is in the City’s TIF District #8 it is also been a part of the City’s request for development proposals that the
city would entertain developer requests for various financing in order to appropriately get the parcel developed and back on the
tax roll. The city has been focusing on this area in the last year as the CDA and Council recently approved the low interest loan
and grant for Delta Restaurant ($7,500 grant & $75,000 loan) late last year for exterior improvements. As part of Mr. Jewell’s
proposed development we are seeing that the cost to construct around $350,000. Mr. Jewell is looking for the city to be a partner
in the form of the following financing mechanisms:
Provide up to $100,000 in a low interest loan. Such a loan would be in the same form that the city recently approved for
Delta Restaurant and would be funded via the TIF 8 funds. Mr. Jewell is showing that he would finance another $180,000
from Citizen’s Bank, and then bring 20% in owner’s equity to the table.
Provide $22,500 as a grant incentive. The city has our commercial grant program already in place and allowing these
monies would be similar to that program. However, being in the TIF District allows us to redefine that program to how
we’d like. In this case Mr. Jewell has found that sewer and water connection costs, based on the structure and tenants
he is proposing, would accumulate to being around $7,500 for water and $15,000 for sewer. The grant would allow the
uses as proposed and would fit into the definition of an economic incentive grant.
Staff conservatively estimates that the proposed development will have an assessed value of $639,000. This would produce over
$10,000/year in taxes!
Developer’s Agreement
Staff mentioned that a formal developer’s agreement would go before the Common Council in the coming weeks should the CDA
recommend approval of the development proposal tonight. The developer’s agreement would outline all the contingencies of the
sale of the parcel. For the CDA’s information staff has outlined the contingencies that would be found as part of a developer’s
agreement below. Knowing these contingencies should ease some concerns.
Any development recommended by the CDA and approved by the Council would ultimately still need BSO approvals
from the City’s Planning Commission.
A rezoning to DR-1 would need to occur and would have to be submitted and followed thru by the developer.
The development would have to be built within 12-18 months following signing of the agreement.
The agreement would outline the incentives and parcel costs listed herein. The loan would need separate Council
resolution approval via the Council when ready.
The agreement would have a form of surety for the city in that the city would hold some of the loan for the development
and we would have a $20,000 deposit.
Recommendation
A recommendation of approval to the Common Council is recommended by staff subject to the stated contingencies that staff
would make part of a developer’s agreement in front of the Council. If the CDA welcomes the development as proposed we might
even want to extend another benefit by waiving the purchase price costs ans simply bringing the escrow payment up to $30,000.
Staff only brings this up because of the fact that the monies we are using are TIF monies already and since the development is
showing over a $10,000/year tax base which would pay off all these grant incentives we may be offering in less than a three
period as it is.
January 21, 2014
Building Overview
Being that this is a pristine corner location on the main artery of Muskego’s downtown
area, I felt it was important to create a building that would complement the surrounding
architecture, and promote a residential character while maximizing the potential of this
small corner lot. In order to achieve this, through discussions with Jeff Muenkel, I
retained the same architect that is designing the new facades of the three surrounding
buildings.
I was born and raised in Muskego, and decided had to make it a home for my wife and 2
young children. I also committed to make it a home for my business Jewell Homes LLC
and R&W Realty company. I am the owner of Jewell Homes and a partner in R&W
Realty with Reno Berg, also a longtime Muskego resident. Both entities intertwine their
roles and would be sharing one of the office suites at this new location.
The other two suites are in the process of having formal lease agreements put into place
with Frenz Hair and Nail salon, and Destiny Chocolates.
Frenz hair and nail salon is owned and operated by 3 Muskego residents and has been a
thriving business in Muskego for well over a decade. The salon is in need of more space
for their growing business and will be a great fit in the downtown area.
Destiny Chocolates is a business owned and operated by Beth Schumacher. Beth is also a
Muskego resident who currently has an office out of her home and a small facility in Oak
Creek. Beth’s struggle has been to find a location small enough for her niche business,
that still has a good location for retail sales. Being that this is a Muskego based business,
Beth envisioned having her first retail location in Muskego.
Expense Overview
Due to the former use of this site as a gas station, there is an area of contaminated soil
long the northeast portion of the property. The proposed building has been designed to
minimize the impact onto this area. During the construction of the new building,
approximately 1320 sq ft will be placed into the contaminated area. In a worst case
scenario, this would translate to roughly 244 cubic yards of fill needing to be removed
and properly disposed of, generating a cost of approximately $8380 in dumping and
trucking fees.
The former business use that left behind a concrete slab that will need to be removed and
disposed of. The added cost for this removal is approximately $600.
Incentives
In order to create a financially feasible project I respectfully ask for the following
incentives to be made available through the TIF.
I would like to have the final sewer and water costs covered. A total of $7500 for water
and up to $15,000 for sewer which should cover the majority of the building and future
tenant improvements.
I intend to use Citizens Bank of Mukwonago for the financing of the building, but would
also like to utilize the low interest loan program that is available with this project.
I intend to purchase the property from the City of Muskego at a price that will reimburse
the city’s investment into the parcel, roughly $10,000-$15,000. I also intend on placing a
deposit of $30,000 be held in escrow with the City until completion of the project that the
city would retain I the event I would default on the project.
Project Financing
The projected cost for the project is approximately $350,000. This includes the building,
site improvements, landscaping and interior build out of unit B which my business will
occupy. In order to finance this project I am seeking a financing package to cover 80% of
the project ($280,000). I ask that the City of Muskego sponsored low interest financing
be made available in the amount of $100,000, with Citizens Bank of Mukwonago
financing the remaining $180,000.
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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 businesses in the amended TIF 8 area. Have items going on with Jerome
Drugs building and Muskego Liquor.
ONGOING BUSINESS ITEM #3:
Muskego Business Park Redevelopment District (#3) Implementation
STAFF DISCUSSION
Chamber of Commerce: It appears that the Chamber Board is looking to put more resources into promoting, and retaining,
manufacturing/industrial development in the city. Staff will be attending the next Board meeting to share what we have done and
how we can partner in the future.
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 in mid-2013.
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
The list below outlines many of our recent objectives in relation to the Marketing Plan implementation. Staff will be highlighting a
new application that is in the works at the CDA meeting that brings a lot of the items below into a mobile format.
Business Contact List & Database
Business Retention Survey/Visits
TIF Leverage
Target Industry’s and Site Selectors
GoMuskego Marketing
Implementation
MISC. BUSINESS ITEM #1:
Redevelopment District Development & Other Miscellaneous Information Updates
None.
MISC. BUSINESS ITEM #2:
Next Meeting Date
Tuesday March 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: ~$350,000
TIF 8 Balance: ~$300,000