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Community Development Authority Packet - 7/15/2014 CITY OF MUSKEGO COMMUNITY DEVELOPMENT AUTHORITY AGENDA July 15, 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 MAY 20, 2014. PUBLIC INPUT NEW BUSINESS 1. Commercial Grant Request: Little Muskego Lake Motors LLC (W179 S7714 Pioneer Drive). 2. Commercial Grant Request: Twisted Cork/Serendipity Redesign (W168 S7392 Parkland Drive / S74 W16832 Janesville Road). 3. Discuss Commercial Grant/Loan Program Guidelines (Ald. Hammel). 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 May 20, 2014 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: Larry Lefebvre, Ald. Bob Hammel, Ald. Blaise Di Pronio, Bonnie Johnson, Bob Mueller, Robert LeClaire, Lana Arrowood and Director Jeff Muenkel. STATEMENT OF PUBLIC NOTICE This meeting was noticed in accordance with the open meeting laws. APPROVAL OF THE MINUTES OF JANUARY 21, 2014 Robert LeClaire made a motion to approve the minutes of January 21, 2014. Bob Mueller seconded. Motion Passed 7 in favor. INTRODUCTION OF NEW CDA MEMBERS ELECTION OF CHAIR, VICE-CHAIR, AND SECRETARY Robert LeClaire nominated Larry LeFebvre for Chairman. Larry LeFebvre nominated Robert LeClaire for Vice Chairmain. Larry LeFebvre nominated Bob Mueller for Secretary. PUBLIC INPUT NEW BUSINESS Janesville Road Grant Request: Muskego Nursing Home (S77 W18690 Janesville Road) Bob Mueller made a motion to approve Janesville Road Grant Request: Muskego Nursing Home (S77 W18690 Janesville Road) for $3,000. Alderman Di Pronio seconded. Motion Passed 7 in favor. *Janesville Road Grant Request: Drefahl (S77 W18512 Janesville Road) Robert LeClaire made a motion to approve Janesville Road Grant Request: Drefahl (S77 W18512 Janesville Road) for $3,000. Alderman Hammel seconded. Motion Passed 7 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 Robert LeClaire made a motion to adjourn. Bob Mueller seconded. Motion Passed 7 in favor. Respectfully submitted, Kellie McMullen, Recording Secretary NEW BUSINESS ITEM #1: Commercial Grant Request: Little Muskego Lake Motors LLC (W179 S7714 Pioneer Drive) STAFF DISCUSSION Enclosed, please find an application for the Commercial Building & Site Grant Program. The applicant is Mr. Richard Grimme who owns the structure and property that houses Little Muskego Lake Motors LLC (Mr. Grimme’s business) and Tom’s Auto Body property located at W179 S7714 Pioneer Drive. Mr. Grimme requests a grant of $1,317.50 for his $2,635 worth of improvements to the frontage of his property. The improvements consisted of the following items below. A full submittal and description can be found in the supplement attached. Project Description:  Install new awnings across frontage of building (Already complete per photos below).  Seal Coat entire parking lot. The grant program is specifically setup to go towards the purposes below: The purpose of the 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. Grimme has found an opportunity to give some more vibrance to his building via the addition of the new red colored awnings. Further, the seal coating is actually a direct result of the Pioneer Drive reconstruction in Mr. Grimme’s eyes. As per the pictures below the “tie-in” of the Pioneer Drive reconstruction left asphalt differences in the approach and edges along the front half of the property. Mr. Grimme would like assistance in seal coating the whole lot to revitalize the appearance as well as make the old asphalt match the new that was installed from the road project. Since the property was affected by the Pioneer Drive construction, is in a Redevelopment District, and due to completing aesthetic improvements, staff believes that the submittal meets the purposes set forth in the adopted grant program. NEW BUSINESS ITEM #2: Commercial Grant Request: Twisted Cork/Serendipity Redesign (W168 S7392 Parkland Drive / S74 W16832 Janesville Road). STAFF DISCUSSION Enclosed, please find an application for the Commercial Building & Site Grant Program. The applicants are filing jointly and are Mr. Greg Gonzales of Twisted Cork (W168 S7392 Parkland Drive) and Ms. Nicole Hahne of Serendipity Redesign (S74 W16832 Janesville Road). The group requests a grant of $6,000 for up to $38,267+ worth of improvements to install a new parking lot accessory to the building they lease in. As the CDA may recall, the city has given monies to the building owner of this property in the past for various façade and site treatments. Project Description: Twisted Cork and Serendipity Redesign have been experiencing great growth and expansion since they both have been in the structure over the past year. The parking at this site is very limited. A few parking stalls existed in front of the structure along Janesville Road prior to the road reconstruction but those have since been removed and reduced. Only a small stall for the owner of Serendipity exists on the SE corner of the building along Janesville Road. The rest of the parking consists of stalls on the west side of the structure that at best serves about 10-12 vehicles. Lastly, the County did install two parallel stalls along Parkland Drive as part of the road reconstruction. Seeing the parking burden, the owner of the property (Mike Fitzgerald) and the tenants have reached out to surrounding parcel owners to see if they could come to an agreement to lease parking and aid in maintenance needs. After multiple attempts to reach out to the owners of the Post Office building across the street they have been told that this is not an option. All owners have since approached the city to see if Muskego would be interested in allowing a new parking lot on the Freedom Square Park that neighbors the tenants property to the north. The Parks and Recreation Department have obliged this request and have it on their Monday July 14th agenda for consideration. In all, should the Park’s and Recreation Board approve the request to allow a parking lot to be built on the Freedom Square Park it would be under the cost of the private owners to do so since the parking lot wasn’t in the long term plans of the Park Board to begin with. Mr. Gonzales and Ms. Hahne understand this. Further, the parking lot would never be dedicated just to the private owners but would be a public lot first and foremost that simply could be used by the adjoining businesses under an agreement with the city. Since the parking lot would be on public lands the city has to appropriately bid the project and could do so with the General Road Program bid that recently was approved. We have found that a cost for this parking lot to be installed later this year would be $38,267. This cost is on the high end but had to account for unforeseen excavation and poor soil costs. The city anticipates this to be lower but can’t be sure. Mr. Gonzales and Ms. Hahne request that the city offset the parking lot cost with the Commercial Grant program in the amount of $6,000 ($3,000 each as per the maximum usually allowed under the adopted grant program). If recommended for approval by the CDA, staff would have the approval of the grant on the next Council meeting along with a Developer’s Agreement outlining how the owners would pay for the parking lot and how they would intend to maintain the lot going forth. Staff recommends approval as the Janesville Road reconstruction project left this property with more reduced parking than before. Further, increasing opportunities for parking along Janesville Road for the public can always help with the walkability of the downtown. Lastly, the parking lot can aid in increased business for the current and future tenants while aiding with safety as many cars currently have been parking along Parkland Drive that is very narrow and has rural ditch sections. Due to the benefits of the parking lot for the overall downtown and the aid to the local businesses, staff suggests that the CDA may discuss the allowance of a bit more monies for this project. The program allows more money per the criteria below of which the group qualifies for: 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%. Once we determine if a grant is recommended and how much staff will be preparing a resolution before Council outlining the owner’s obligations and the upfront payments necessary to complete the work. NEW BUSINESS ITEM #3: Discuss Commercial Grant/Loan Guidelines (Ald. Hammel) STAFF DISCUSSION Alderman Hammel requested that the CDA take some time to discuss the adopted Commercial Grant and Loan Program guidelines and procedures. Specifically relating to a possible sunset on the grant monies for this program. ONGOING BUSINESS ITEM #1: Tess Corners Redevelopment District (#1) Implementation STAFF DISCUSSION -Staff will share new development news for the area including the Storage Master that was recently approved for the former Salentine Auto lot. -Staff will share news on landscape replacement that was killed off this past winter for this area. ONGOING BUSINESS ITEM #2: Downtown Redevelopment District (#2) Implementation STAFF DISCUSSION TIF Funds Motivation: -Updates on the Jerome Drugs structure, Muskego Liquor, and the old Shell site. Janesville Road Reconstruction: Complete – Any issues/questions/concerns? Pioneer Drive Redevelopment At our last meeting we had a long discussion on various Pioneer Drive redevelopment items we possibly wanted to pursue to aid in increasing the vibrancy of the area and increased business. The CDA put off discussion until this meeting in order for the members to take a chance to think about the area more in depth and brainstorm/prioritize items we might want to get involved in. Below are some of the main items we were going to think about. We will address the items below and discuss if and how we want to pursue each.  Move forward on a development proposal upon the city lands in front of the Parks Maintenance garage If the CDA is all in agreement we can provide a recommendation for staff to begin advocating to have the vacant portion of the Parks Garage land to be put out for development proposals under the control of the CDA. Various Park’s Board and Council approvals would be required from there. Further, conversations with the Council as they embark on their Facilities Study discussions in the overall community would need to occur. If approved, the CDA could then host a Request for Proposal (RFP) process that only approves a future use of the land dependent on a structure/use meeting the Historic Crossroads Design Guide and being built within a specific given period of time under a developer’s agreement. Just like we recently did with the John Jewell building at the former BP Gas Station site.  Pursuing making the Public Works property developable This property is more tricky then the Parks Garage parcel and is located on the north end of Pioneer Drive along the west side of the road, just south of the Thomas Jewelers building (see map in the inset). If the CDA would like they can direct staff to determine costs and feasibility to make this parcel developable as well as take it thru the appropriate committees to see if they would allow such a venture. Lastly, we discussed that the parcel to the south may make this parcel more developable for a commercial opportunity. The southern use is residential at this time. If the CDA sees fit, they could direct staff to discuss the possibility of this landowner willingly selling the parcel to the city. If the owners would like to entertain the idea staff would bring back cost feasibility studies to the CDA before moving any further ahead (cost vs. possible resultant development potential).  Increasing the max grant amount for the Pioneer Drive In order to encourage more people to redevelop staff was thinking that we increase the grant program potential for a specific time period? Current program allows $3,000 max as a matching grant and we may want to up the max to $5-$7,000 for a period of time to jumpstart redevelopment projects just for this area? There are only a limited amount of parcels this would apply to.  Looking at grant program for residential uses on Pioneer Drive This has been discussed in the past by the CDA and Council. Having a residential grant program for the whole Redevelopment District was never approved. However, the various boards discussed that having a residential program for a specific defined area for specific items may be encouraged. The thought that the “Pioneer Drive Historic District” may be that possibility once the road reconstruction was complete. If the CDA wants to pursue this we should discuss how we might tailor a specific program for the residential properties along Pioneer Drive for recommendation to Council. Staff believes such a program should define the exact items the monies could go for and have a timeline on the program. The amount of monies could be minimal compared to the Commercial Grant Program. Staff suggests the CDA take a look at all the residential properties along this area prior to the meeting to think about what we could advocate for owners to do their properties as part of a program.  Outreach As discussed in the past, after we look to pursue some of these items we should organize a meeting with the owners along the road to gain new ideas and promote investment. Wall Art? For many years staff has kept their eyes open for new possibilities to bring distinction to the City’s downtown. With the Redevelopment District created and the city completion/large investment of Pioneer Drive and Janesville Road, it becomes paramount to keep the overall theme fresh and the downtown a place for people to visit and be proud of. One item of interest that other communities have participated in is applying wall art on blank facades of structures within their downtown area. The wall art is usually of significance tying into the history/theme of the community as well as the local business in which it might adorn. Given that Muskego is rich in history (especially in the downtown), and has plenty of themes to promote (sunfish, lakes, nature, etc.), it shouldn’t be trouble to tell a story through art here. Staff has researched the possibility of this and has found many options communities have used. Local artists are solicited for ideas via Requests For Proposals or actual groups are contracted for the community. Some examples of wall art in communities in WI are found below. Also, a few possible locations to add some wall art are found below as well. Since the downtown is within the confines of the Redevelopment District, and the district recommendations are to promote the downtown vibrancy and overall community, it seems that the CDA starting such an endeavor is appropriate. Tonight staff wanted to have a general discussion if the CDA sees value in such a project. If so, staff could pursue this further by:  Seeing which business owners would be interested in the use of their façade  Discussing possible costs with local and contracted group artists At our next meeting we could then decide if we wanted to move forward with an RFP process and recommend our cost threshold. Staff would then take it thru the Council to approve any funds for the project. Funding sources could all be via CDA existing funds from the Downtown Redevelopment District (Property Sale Balance) or also possibly from the TIF Residual funds as well since the TIF benefits the downtown areas. City of Plymouth, WI City of Waukesha, WI City of Elkhorn, WI Possibilities for Locations for Wall Art in Redevelopment Districts Jerome Drugs east/west facades Muskego Liquor east/west facades Post office Building east/west facades NE Corner of Parkland/Janesville building façade Janesville Commons east/west facades Kingdom Care Daycare facade Suburban Bourbon east/west facades Haven Spa or Gerth Heating facade Thomas Jewelers or Apartment Building on Pioneer facades Horn Bros. facades Tess Corners Building east/west facades ONGOING BUSINESS ITEM #3: Muskego Business Park Redevelopment District (#3) Implementation STAFF DISCUSSION Business Retention and Expansion & Customer Diversification Assessments: We discussed at our last meeting that staff would be sending out this year’s business retention surveys. The CDA approved the draft of that and we added a couple new questions as well. One question in particular was in regards to if a company might benefit from us aiding them in a customer diversification assessment (FYI: described in more detail below). Ten (10) surveys have been received to date and we will send out a reminder survey to try and get more later this week. Staff will share the full results and our intentions for follow-up at our next meeting. One interesting item of note thus far on the surveys is that a majority see benefit in customer diversification assessments and the city aiding in those. Customer Diversification Assistance In collaboration with the market research services of the Wisconsin Innovation Service Center (WISC), the University of Wisconsin-Whitewater Small Business Development Center offers customized assistance to manufacturers in our five-county region that includes Dodge, Jefferson, Rock, Walworth and Waukesha Counties. Manufacturing businesses can survive and grow by finding and reaching new customers in new markets. Customer Diversification Assessments and follow-up consultations for implementation provide companies with information  To replace lost business  To diversify across industries  To reduce vulnerability to market downturns  To focus on the best market segments  To find and reach new customers in new markets Customer Diversification Assessments research costs around $3000 with exact prices determined based on specific project scope. Depending on where the business is located, grant funds may be available to cover part of the cost of the project. For more information or to request a Customer Diversification Assessment proposal, contact Sandra Beccue at 262-472-1365 or by email at innovate@uww.edu. More information about WISC research services can be found online at http://wisc.uww.edu. 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 Below are some of the pertinent items staff has been working on in relation to Marketing Plan implementation lately: Business Contact List Database/Sale & Lease Properties Economic Development Tool: Tool is operational and receiving positive results thus far. Staff will actually be presenting this tool we use at a State Conference alter this year since it is the only one like it around. TIF Leverage: Working with many businesses on TIF leverage in our downtown and Moorland TIFs. A couple possibilities for new businesses with possible incentives from the city coming in 2014 for the Moorland Rd area. Attended Northern Gear grand opening in which Muskego was applauded on we leveraged the TIF. Staff has been invited to speak to the Waukesha Business Alliance later this year to go over the many economic development mechanisms we implement in retaining and creating new business and tax base. Target Industry’s and Site Selectors: We just sent out Muskego data sheets to over 400 IL businesses that meet our Marketing Plan criteria of industries that are ripe for the Muskego market for expansion. GoMuskego Marketing: Continued to send out letters and completed follow-ups new businesses and franchises we are enticing to Muskego. Find new references in various locations from brokers leads to Business Journal. MISC. BUSINESS ITEM #1: Redevelopment District Development & Other Miscellaneous Information Updates - RD #2 Rezoning Petition MISC. BUSINESS ITEM #2: Next Meeting Date Tuesday September 16th 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: ~$600,000+ TIF 8 Balance: ~$200,000