Community Development Authority Packet - 9/16/2014
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
AGENDA
September 16, 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 THE JULY 15, 2014 MEETING.
PUBLIC INPUT
OLD BUSINESS
1. Discuss Commercial Grant/Loan Program Guidelines -
NEW BUSINESS
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 Developments Disc. & 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
July 15, 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: Ald. Hammel, Ald. DiPronio, Commissioners Johnson, Mueller, LeClaire, Lefebvre,
and Arrowood, and Director Muenkel.
STATEMENT OF PUBLIC NOTICE
The meeting was noticed in accordance with the open meeting laws.
APPROVAL OF THE MINUTES OF MAY 20, 2014.
Bonnie Johnson made a motion to approve the minutes of May 20, 2014. Lana
Arrowood seconded.
Motion Passed 7 in favor.
PUBLIC INPUT
NEW BUSINESS
Commercial Grant Request: Little Muskego Lake Motors LLC (W179 S7714 Pioneer Drive).
Alderman Di Pronio made a motion to approve Commercial Grant Request: Little
Muskego Lake Motors LLC (W179 S7714 Pioneer Drive). Robert LeClaire seconded.
Motion Passed 7 in favor.
Commercial Grant Request: Twisted Cork/Serendipity Redesign (W168 S7392 Parkland Drive
/ S74 W16832 Janesville Road).
Alderman Di Pronio made a motion to approve Commercial Grant Request: Twisted
Cork/Serendipity Redesign (W168 S7392 Parkland Drive / S74 W16832 Janesville
Road). Bob Mueller seconded.
Motion Passed 6 in favor 1 opposed.
Ald. Hammel voted no.
Discuss Commercial Grant/Loan Program Guidelines (Ald. Hammel).
ONGOING BUSINESS
Tess Corners Redevelopment District (#1) Implementation.
Downtown Redevelopment District (#2) Implementation.
Pursue making the Parks Maintenance Garage property along Pioneer Drive
developable -
Bob Mueller made a motion to recommend moving forward on a development
proposal for the Parks Maintenance Garage along Pioneer Dr. Alderman Hammel
seconded.
Motion Passed 7 in favor.
Pursue making the Public Works property along Pioneer Drive developable -
Alderman Di Pronio made a motion to pursue making the Public Works property
developable and also approaching the surrounding two property owners. Bob
Mueller seconded.
Motion Passed 7 in favor.
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 Sept. 16, 2014.
ADJOURNMENT
Robert LeClaire made a motion to adjourn at 7:01 PM. Alderman Hammel seconded.
Motion Passed 7 in favor.
Respectfully submitted,
Kellie McMullen,
Recording Secretary
OLD BUSINESS ITEM #1:
Discuss Commercial Grant/Loan Guidelines
STAFF DISCUSSION
The CDA had a discussion at our last meeting if we wanted to suggest a sunset clause on the existing Commercial
Grant and Loan programs in light of the Janesville Road construction program being completed in June. CDA
requested that this item be on for discussion again in September after everyone had a chance to think if it needs to be a
requirement as of yet. Copies of the existing grant and loan programs are attached in the supplement for CDA
convenience.
Commercial Building & Site Loan
Program
Introduction
In 2009, the City Of Muskego established the Commercial Building and Site Loan Program as administered by
the Community Development Authority (CDA). These funds are intended to be used to improve properties and
enhance the tax base within Redevelopment Districts (RD) No. 1 and 2. Businesses and property owners within
the RD No. 1 and 2 are eligible for low-interest loans to finance business expansion or start-up projects. Loan
funds that are repaid to the City will be used to assist other businesses within the RD No. 1 and 2. The purpose
of this plan is to set forth the criteria for the financing that is available from the Program. The Façade Loan
Program is relatively the same as the Façade Grant Program but is focused towards larger scaled projects.
Purpose of the Economic Development Program
The Program has been established to increase the tax base of RD No. 1 and 2 through the retention and
expansion of existing, and the development of new, small businesses. Small- and medium-sized businesses
often lack the necessary capital to develop or expand their operations, and, as such, this lack of capital has a
significant impact on the local tax base.
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. Loan 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 Program includes funding mechanisms and interest rates that are designed to encourage business
development, while providing for the recapitalization and growth of the Program.
Target Area
The loan program is available to all Downtown Muskego businesses within Redevelopment Districts No. 1 and 2
(please refer to attached map). The Redevelopment District 1 and 2 areas has been found and declared a
blighted area and specific properties within the RD No. 1 and 2 Plan boundaries are specifically discussed as
blighted properties per Common Council Resolution.
Eligible Applicants
A. Buildings & Sites
Loans must be used for rehabilitation of existing commercial buildings or for site modernizing within
the designated target area. All properties must be conforming uses or legal nonconforming uses
under the City’s zoning ordinance. Properties will not be eligible if any special assessments, real
estate taxes or personal property taxes are delinquent. Buildings with multiple tenants must be
remodeled in a unified manner.
B. Eligible Applicants
Owners, tenants, or owner/tenant joint ventures may submit applications under this program.
Tenants must submit written approval of the property owner, evidence of their leasehold interest
and must comply with requirements and standards as deemed necessary by the City.
Applicants shall not be disqualified based on age, race, religion, color, handicap, sex, physical
condition, development disability as defined in s.51.01(5), sexual orientation, or national origin.
C. Ineligible Applicants
No member of the CDA, the Common Council, or any other official, employee, or agent of the City who
exercises decision-making functions or responsibilities in connection with the implementation of the
program is eligible for financial assistance under this program. In addition, no loans shall be made
which are in conflict with Section 946.13 of the Wisconsin Statutes (Private Interest in Public Contract
Prohibited).
Loans shall not be available for the following businesses:
Speculative investment companies;
Real estate investment companies;
Lending institutions;
Gambling operations;
Non-public recreation facilities; or
Businesses not serving the interests of the City.
Administration of the Program
The monies in the Program shall be the property of the City of Muskego. Funding decisions, relative to Program
applications, shall be made by the Common Council with recommendations from the CDA. The City Department
of Community Development shall be responsible for day-to-day administration of the Program, with staff
assistance provided by the Southeastern Wisconsin Regional Planning Commission (SEWRPC).
Application Procedures
Businesses that are interested in applying for Program financing should contact the Director of Community
Development at W182 S8200 Racine Avenue, PO Box 749, Muskego, Wisconsin 53150-0749. A copy of the
Program application and a list of the supporting documentation needed for each application are included as an
attachment to this plan.
Program Standards and Policies
The following standards and policies will be utilized in the Program:
1. Funding Limits: The maximum amount of loans available for each applicant to the Program is $25,000.
NOTE: While the loan amount stated above has a maximum of $25,000 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, those projects that are of a grander scale, projects
that may set the tone for an area, projects that may be a catalyst for other redevelopments/developments
in the area.
2. Private Sector Leverage Ratio: At least one dollar of private sector investment will be required for each
dollar of City investment. Private sector investment is defined as financing from a private lending
institution and/or cash equity that is contributed to the project by the applicant.
3. Community Benefits: Applicants must demonstrate tax base enhancement to be eligible for funding. In
particular, Program monies contributed to a project must not exceed 30 percent of the existing fair market
value of the property as reported by the City Assessor or an appraiser acceptable to the City.
Applicants for funding must also demonstrate that the project will meet a public purpose, such as
providing jobs, enhancing the tax base, enhancing the community in some way, or increasing tourism and
consumer utilization within RD No. 1 and 2.
4. Design Standards: All applicants shall utilize Muskego Downtown Design Guidelines, Muskego General
Design Guidelines, and Redevelopment Districts No. 1 or 2 Plan concepts as a guide for designing
improvements to buildings and sites. The documents can be found at the City of Muskego website or
copies can be attained in the Muskego Department of Community Development.
5. Eligible Activities: Activities eligible for funding through the Program include:
Buildings
A. Design improvements made to front, rear or side building elevations, (priority will be given to front
facades) including the following:
Modernizing of overall building materials and structure
Addition of new building materials
Adaptation of new and innovative architectural elements to a structure
Re-Painting
B. Construction of new buildings.
C. Structural additions to existing buildings.
D. Building demolition in cooperation with a re-build
E. Design fees on completed projects.
Sites
A. New road signs (Must be “monument” signage only to qualify)
B. Updated and/or additional landscaping and lighting
C. Screening devices for outdoor storage or refuse containers
D. Parking Lot redesign or updates
6. Ineligible Activities: Activities not eligible for funding through the Program include:
A. Roof repairs.
B. Purchase of property and/or buildings.
C. Equipment or Mechanical Systems.
D. Interior fixtures & furnishings.
E. Inventory or operating capital.
7. Standard Terms:
Program loans will be provided with a maximum term of 10 years. The specific term for an individual
borrower will be based on the useful life of the asset, as well as the terms offered by the private sector
financial institution participating in the project. However, the City retains the right to adjust individual loan
terms in order to facilitate a successful Program project.
8. Need Determination: Each applicant for Program monies must demonstrate that Program financing is
necessary to make the project feasible.
9. Interest Rate: The interest rate on each loan shall be set at 50% of the prime rate as published in the
Midwest Edition of the Wall Street Journal or 4 percent, whichever is less (Note: The range in interest rates is
subject to change and is reviewed annually by the Muskego Community Development Authority). The
interest rate shall be fixed for the term of the loan.
10. Deferral of Principal and Interest: The Program has the option of deferring principal and interest payments
upon demonstration by the recipient business that a deferral is required to make the project feasible. The
period of time for which a deferral can be provided will be negotiated with the City on a case-by-case basis.
Interest will accrue during the deferral period or be cancelled at the discretion of the City.
11. Prepayment: There shall be no prepayment penalties.
12. Equity Requirements: The Program may require an equity injection for each loan, when appropriate.
Consideration will be given for individuals that have made substantial equity commitments to the applicant
business, as well as to individuals who do not have sufficient financial resources to contribute to the project.
13. Collateral Requirements: Each Program loan will include a financing agreement between the City and
recipient business that details the terms and conditions of the Program financing, along with supporting
collateral documents, if needed. In addition, the City may require performance bonding when deemed
necessary to protect the City's interest in the project.
Collateral requirements will be determined on an individual basis by the City and may include mortgages
on land and buildings. This collateral may be subordinated to private sector financial institutions
participating in the Program project, if required. Personal guarantees from the principals of the business
will be required. In addition, junior liens on all business assets may be used where appropriate.
Finally, loan recipients will be required to obtain property-casualty insurance for the appraised value of the
property being financed, and have the City listed as an additional insured on the policy.
14. Application Fee: The City shall require a loan application fee of one-half percent (0.5%) of the loan amount,
with a $50 minimum and a $200 maximum. All loan application fees shall be identified as program income
and deposited in the loan account prior to being used to finance administrative costs associated with the
program. These costs include, but are not limited to: application packaging, appraisals, environmental
studies, soil borings, and other consultant studies deemed necessary by the City to provide approval for
the requested funding. These costs are the responsibility of the applicant, and, if the requested financing
is approved, the costs may be financed with proceeds from the Program. The City reserves the right to
waive or reduce this application fee.
15. Financing Origination Fees: The City shall require a loan origination fee of $50 or 0.5% of the loan amount,
whichever is greater. In addition, the City shall require the applicant to pay 30 percent of the legal fees and
costs incurred by the City for the loan closing. The fees may be added to the principal amount of the loan and
paid with Program funds.
16. Availability of Funds: Available funding for the Program will be established by the City on an annual basis.
In those instances where the number of requests for Program monies exceeds available funding, Program
applications will be prioritized based upon the date of receipt of all requested application materials, the
community benefit, and the amount of private sector leverage that is included in the project. When
feasible, the amount of Program monies contributed to each project will be reduced in order to facilitate as
many Program requests as possible.
17. Project Completion Date: All Program projects must be initiated within 12 months following approval of the
financing application and completed within two years following approval of the financing application. The
City may provide extensions beyond the time limit, if warranted, upon the request of the applicant.
18. Additional Requirements: All Program financed activities must:
a) Conform with the RD No. 1 or 2 Project Plan, the City Of Muskego Comprehensive Plan, and all
supporting policy documents;
b) Have the applicant retain ownership for sufficient time to complete the project, stabilize its occupancy,
and establish project management;
c) Comply with all applicable policies, rules, codes, regulations, and statutes of the City and State.
19. Review Process: Specific steps in the review process include the following:
A. Project Application. SEWRPC staff shall review the application for completeness and verify that the
proposed project meets the minimum requirements provided herein. If the application is not
complete, SEWRPC staff will inform the applicant of the deficiencies. A complete application, as
determined by SEWRPC staff, must be received no less than 20 days prior to a scheduled Community
Development Authority meeting in order to be available for discussion for that CDA meeting.
B. Initial Review. The CDA shall meet to review an application within 45 days of the receipt of a
completed application. A recommendation for funding shall be forwarded to the Common Council for
a final funding determination.
C. Notice of Award. Upon acceptance by the Common Council, SEWRPC staff shall contact the business
to review and explain the loan terms and to schedule a closing to execute the necessary loan
documents.
D. Rejection of Award. If the application is not approved, SEWRPC staff shall notify the applicant in
writing of the reasons for the rejection and offer to meet with the applicant to explore ways to
strengthen the loan request or to identify alternative funding sources.
Note: Applications, depending on the amount of changes made to an existing commercial buildings or
sites, may need to be reviewed by other authorities before final approval including the Planning
Commission. Substantial change determinations are solely made by the City’s Community Development
Director.
20. City Considerations: Below is a list of some of the criteria the CDA and Common Council may consider in
the review of a loan at a public meeting in open or closed session. Further eligibility requirements are
found elsewhere in this manual. No one particular item will unduly advance or disqualify your application.
The City looks at the full picture when choosing its recipients.
A. Amount of the loan request.
B. Eligibility of activities the loan is requested for.
C. Personal financial information (Note: Submission of personal financial information may require the
City go into closed session to keep this information private and available only to the City and
SEWRPC. When reviewing any loan application, the potential for going into closed session will be
noted on that evening's agenda so as not to postpone your application process. Providing for the
possibility of a closed session on the agenda does not guarantee a closed session will be
necessary.).
D. Application completeness.
E. Past approval of loans or grants for the property
F. If sufficient time was allowed for the Authority or Council to review the application.
G. Necessity of requested loan.
Commercial Building & Site Grant
Program
Introduction
The Commercial Building & Site Grant Program has been established to stimulate commercial exterior building and
site improvements within the context of the downtown as administered by the Community Development Authority
(CDA).
The Façade Grant Program is relatively the same as the Façade Loan Program but is focused towards smaller scaled
projects (Ex. new signage, parking lot updates, general structure updates, landscaping, etc.). Businesses that meet
the eligibility requirements outlined below can receive matching grants up to $3,000.
Purpose
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.
Target Area
The Façade Grant Program is available to all Downtown Muskego businesses within Redevelopment Districts No. 1
and 2 (please refer to attached map). The Redevelopment Districts No. 1 and 2 areas have been found and
declared a blighted area and specific properties within the RD No. 1 and 2 Plan boundaries are specifically
discussed as such in the Plan.
Eligibility
A. Buildings & Sites
Funds must be used for rehabilitation of existing commercial buildings or for site modernizing within the
designated target area. All properties must be conforming uses or legal nonconforming uses under the
City’s zoning ordinance. Properties will not be eligible if any special assessments, real estate taxes or
personal property taxes are delinquent. Only one grant per property will be allowed each year (with year
begins on the date of an approval by Council). Buildings with multiple tenants must be remodeled in a
unified manner.
B. Eligible Applicants
Owners, tenants, or owner/tenant joint ventures may submit applications under this program. Tenants
must submit written approval of the property owner, evidence of their leasehold interest and must
comply with requirements and standards as deemed necessary by the CDA.
Applicants shall not be disqualified based on age, race, religion, color, handicap, sex, physical condition,
development disability as defined in s.51.01(5), sexual orientation, or national origin.
C. Ineligible Applicants
No member of the CDA, the Common Council, or any other official, employee, or agent of the City who
exercises decision-making functions or responsibilities in connection with the implementation of the
program is eligible for financial assistance under this program. In addition, no loans shall be made which
are in conflict with Section 946.13 of the Wisconsin Statutes (Private Interest in Public Contract
Prohibited).
2
Loans shall not be available for the following businesses:
Speculative investment companies;
Real estate investment companies;
Lending institutions;
Gambling operations;
Non-public recreation facilities; or
Businesses not serving the interests of the City.
D. Eligible Activities
Eligible activities shall include but are not limited to the following:
Buildings
A. Design improvements made to front, rear or side building elevations, (priority will be
given to front facades) including the following:
Modernizing of overall building materials and structure
Addition of new building materials
Adaptation of new and innovative architectural elements to a structure
Re-Painting
B. Design fees on completed projects.
Sites
A. New road signs (Must be “monument” signage only to qualify)
B. Updated and/or additional landscaping and lighting
C. Screening devices for outdoor storage or refuse containers
D. Parking Lot redesign or updates
E. Ineligible Activities
The following are not eligible for inclusion in this program:
A. Roof repairs.
B. Construction of new buildings.
C. Structural additions to existing buildings.
D. Purchase of property and/or buildings.
E. Equipment.
F. Interior fixtures & furnishings.
G. Inventory or operating capital.
Program Funding
The program allows a matching grant. All grant funds are administered by the CDA and allocated by the Muskego
Common Council. The grant runs on first come, first serve basis. Buildings/Sites shall be eligible for grant funding
only once per calendar year. Façade Grant funds shall be allocated to specific projects based on the following
formula:
50% matching grant up to $3,000
Funds are available up to the amount budgeted by the Common Council on a yearly basis and this program does
not guarantee that monies will be in the program at all times.
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%.
3
Applicants seeking more than the maximum funding allowed must state in their applications which of the
above criteria is fulfilled and their reasoning. Additional justification requesting funds surpassing the
maximum may also be submitted. Providing justification does not guarantee approval.
Design Standards
All applicants shall utilize Muskego Downtown Design Guidelines, Muskego General Design Guidelines, and
Redevelopment District No. 1 or 2 Plan concepts as a guide for designing improvements to buildings and sites. The
documents can be found at the City of Muskego website or copies can be attained in the Muskego Community
Development Department.
Application Process
A. Applicant obtains application and design standards from the Muskego Community Development Department to
develop ideas for improvements.
B. Applicant may meet with Community Development Department staff to go over improvement ideas.
C. Based upon a concept, the applicant obtains preliminary cost estimates from a contractor selected by the
applicant.
D. Applicant completes an application, which includes design plans, cost estimates and construction schedules. At
least two (2) bids should be submitted for each project and it is recommended that at least one bid is from a
local Muskego contractor (if found). The completed application is submitted to the Muskego Community
Development Department for review and then forwarded to the CDA, at their next available meeting, for
determination. The CDA meets on a monthly basis. The CDA may consider past approval of loans or grants for the
property.
E. If the application is recommended for approval by the CDA, the Common Council must then act upon the grant
submittal. A resolution of the Common Council, outlining the commitments required by the applicant before
issuance of any grants, must be approved at the next available Common Council meeting. If the application is
not approved by the CDA, the board will explain the reasons for rejection, and what, if any, steps can be taken to
gain approval.
F. Applications, depending on the amount of changes made to an existing commercial buildings or sites, may need
to be reviewed by other authorities before final approval including the Planning Commission. Substantial change
determinations are solely made by the City’s Community Development Director.
G. Projects that commence prior to approval by the CDA do so at their own risk but may be eligible for a grant if the
proposal follows the Downtown Design Guidelines, General Design Guidelines, Redevelopment District No. 1 or 2
Plan concepts, and is for an eligible activity, as determined by the CDA. In such cases, the CDA will review the
application at the next regular meeting following the filing of the application and make the necessary
determinations. In no case shall a grant be approved for a project that was completed or started more than six
months after the date of application submittal. Preference will be given to those applying for first time grants
and those grant proposals that haven’t commenced construction before grant approvals. Actual paid invoices
must accompany grant proposals that were already completed.
Post Application Procedure
The Common Council resolution will outline the responsibilities of the applicant, however, the basic procedures will
apply:
A. Projects must be completed within 12 months of Common Council approval or the grant shall become
void.
B. Changes in the approved work, that affect the monetary value of the grant issued, must be approved by
the CDA and possibly other City boards (The City’s Planning Commission if change is deemed substantial
to what was originally approved).
C. Approved changes in work verifications will be attached to the original applications dated and signed by
the City’s Community Development Department.
D. The applicant and Community Development Department staff will review proof of payment (paid
invoices) and completed work before the grant payment will be made to the applicant.
E. Deviations from an approved plan may disqualify the applicant from this program.
ONGOING BUSINESS ITEM #1:
Tess Corners Redevelopment District (#1) Implementation
STAFF DISCUSSION
-Landscaping was recently updated along the corridor
-Gas Station at Tess Corners worked thru new owners and is receiving a fresh start
-Storage Master was fully permitted and is beginning to make their changes to the old Salentine Auto property
-Customer Diversification Assessment can apply to the business owners in the Tess Corners Business Park and staff
will discuss this more during the Redevelopment District #3 items.
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.
Pioneer Drive Redevelopment
At our last couple meetings we have had good discussions on various Pioneer
Drive redevelopment items we possibly wanted to pursue to aid in increasing the
vibrancy of the area and increased business. A few of the items we put to bed but
here is a list of the outstanding items and their statuses. Some items we may
need to take some action on tonight:
Move forward on a development proposal upon the city lands in front of
the Parks Maintenance garage: The CDA recommended the Council
move ahead on these lands. Action has not been taken by the Council
regarding these lands as they are still in the midst of figuring out the
Facilities Study priorities which will drive this decision and the timing.
Pursuing making the Public Works property developable:
CDA directed staff to first see if the residential owners to the north and south of this parcel would have interest
in selling their parcels. Adding additional acreage to the City owner parcel would aid in a larger more tax
producing development as well as allowing a new development that could be more appropriate for the historic
downtown design we are looking to foster here (commercial/mixed uses close to the street).
Staff had a discussion with both owners and both have interest in selling. For a city to purchase a residential
parcel we would have to go thru a friendly condemnation process. Basically, the city would hire a consultant to
attain unbiased appraisals via state laws and make an offer to the parcel owners. This process can take some
time and can result in no transaction being made if the property owner decides to walk away during the process.
Staff contacted a local consultant that does friendly condemnation appraisal process work. The costs for the
consultant along with adding City Attorney costs in for a future real estate closing would probably total around
$3,500-$4,500/each. There would then be other costs to get the parcel in development ready condition such as
demolition and grading costs.
Here are some possible reasons for pursuing such an endeavor:
The three parcels combined would have about 170 feet of frontage along Pioneer Drive
immediately south of Janesville Road.
Converting this area to commercial would aid in solidifying the first 500 feet south of Janesville
Road as commercial opportunities. With the exception of a couple single family properties on
the east side of Pioneer, this would establish somewhat of a core grouping of commercial land
uses south of Janesville Road.
The resulting parcel would allow for city control of the development put here. The goal has
been to create commercial opportunities in this area in a quaint historic format and the city
could help accomplish taking a step in this establishment.
Many new small businesses calling the city lately have been looking for eclectic small square
footage leasable areas for their businesses and such a parcel could open up a couple
opportunities like this (uses similar to the business Free Bird that is here today).
A new development would most likely be a mixed use with retail/commercial on the bottom floor
and housing above creating more tax base opportunity. Such a mixed use development is
exactly what a traditional neighborhood downtown looks to implement.
The parcels have the following attributes below. A chance for a positive gain in tax base can be
found once the parcel would be fully developed.
Northern Parcel: 0.20 Acres Assessed at $107,500 with yearly taxes of $1,735
Southern Parcel: 0.18 Acres Assessed at $112,900 with yearly taxes of $1,953
City Parcel: 0.50 Acres Assessed at $0 with yearly taxes of $0
TOTALS: 0.88 Acres Assessed at $220,400 with yearly taxes of $3,688
By comparison, the Thomas Jewelers parcel to the north has a current assessment of over
$300,000 and a yearly tax bill of $5,595.
The CDA should evaluate if there is enough good reason to pursue this development opportunity. In all, staff
sees that the city would have to front some monies to realize this development, however the benefits could go a
long way for the revitalization of Pioneer Drive and increased tax base for the community. Staff suggests that
the CDA recommend to the Council approval of pursuing the purchase of the two residential properties knowing
that the CDA could cover the costs of friendly condemnation procedures and future site development costs (+/-
$10,000-$15,000). The CDA has monies in their professional services budget ($3,000/year) as well as their
property sale budget (currently at ~$90,000) that has existed for many years. If the property sales are
negotiated in the future, staff would recommend to the Council at that time that we purchase the parcels with
the City’s TIF Residual monies. Unlike our previous development turnovers however, staff would suggest that
we sell the property to a developer for close to, or exactly, the amount of the purchase prices so as the city is
made whole, or close to, in the end (other than the fronting monies the CDA invested for the appraisal and pre-
development costs). Purchase prices should be similar to the above assessments.
If this worked out, the CDA/city would have a small investment in a development that could yield a higher tax
base for the area while enhancing new commercial opportunities for the historic Pioneer Drive area.
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. This is looking to be a good winter
project to increase awareness and aid in motivation for the new year.
ONGOING BUSINESS ITEM #3:
Muskego Business Park Redevelopment District (#3) Implementation
STAFF DISCUSSION
Business Retention and Expansion Surveys & Customer Diversification Assessments:
We discussed at our last meeting that staff would share some of the data from this year’s Business Retention and
Expansion (BRE) Surveys we sent out. For 2014, we sent out a total of thirty-five (35) surveys and had twelve (12)
returned (34%). Surveys were sent to businesses with a small to large employee base. Here are some of the highlights:
Majority feel Muskego is a great place to conduct business
Main reason businesses are located in Muskego is the proximity to the freeway
A majority do have difficulty in finding good employees; Most cite the need for better mechanical skills
Many get employees from the local tech schools of WCTC and MATC
Many would like upfront grants to get an expansion moving
A few have insufficient room to expand
Many have suppliers close but are always looking for suppliers closer
Some takeaways that staff will be completing as a result of the survey are the following:
Investigating how the city may help in Customer Diversification Surveys
Direct follow-ups with those looking to expand and to see how we can help
Direct follow-ups with those looking at financial incentives. The ones who want upfront grants-How can we tailor
a program that works as an upfront grant but still has some payback to back the city? Forgivable loans? Use of
Industrial Revenue Bonds instead?
Investigate WCTC/MATC ways they reach out to local businesses to place their students. How can we get a
better connection?
The specific item above regarding the Customer Diversification Assessment Survey (CDAS) does require some more
CDA discussion. Based on the survey many businesses may look fondly upon completing a CDAS. As we have
discussed in the past, a CDAS consists of the following:
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.
Seeing that a CDAS usually costs around $3,000 we should discuss what kind of program we may want to setup, if any.
Staff suggests that we might want to roll out a program to all manufacturing type businesses in Muskego where we
would cover a survey for them up to $3,000 (Note above that some businesses may qualify for other grants to help
cover their costs as well). We could structure a program to allow it to be first come first serve, have to first get approval
from the CDA, and that there is only a given number of $3,000 grants available (such as seven equaling $21,000) thru
the 2015 year?
Upon any recommendations staff would prepare such a program for CDA approval and recommendation to the Council
at our next meeting. We have a balance of over $50,000 still dedicated to the Muskego Business Park in which we
could use for such an endeavor. Staff believes that aiding our businesses with such a survey goes a long way in how
Muskego looks to retain and grow their existing businesses.
Muskego Business Retention &
Expansion (BRE) Survey 2014
Thanks for your time in completing this Business Retention Survey. The City of Muskego uses surveys like these to see
how what the community may do better in order to make Muskego a positive place to do business while increasing the
tax base and job opportunities in the region. We compare the survey results from year to year as well.
Company Name:____________________________________________________________________________________
Name:_________________________________________ Position Title:________________________________________
Address:________________________________________ Email:_____________________________________________
LOCAL ENVIRONMENT
1. What is your overall opinion of Muskego as a place to
conduct business?
Very Poor Poor Average Good Excellent
2. Has your attitude changed in the last two years about
doing business in Muskego?
YES NO
If Yes, has it:
IMPROVED DETERIORATED
Why?__________________________________________
______________________________________________
______________________________________________
3. What IMMEDIATE business needs or concerns could be
addressed by the City of Muskego local government to
help your business?
______________________________________________
______________________________________________
______________________________________________
______________________________________________
4. What do you see as some of the main assets of the
community as a place to live and own a business?
______________________________________________
______________________________________________
______________________________________________
______________________________________________
5. What main changes would you like to see made to
improve the area you do business in OR in the overall
city? (Ex. Street, infrastructure, or aesthetic upgrade needs directly
around you that may affect your business or how your
consumers/clients view your business or the overall city)
______________________________________________
______________________________________________
6. What are your top three (3) reasons for locating or
keeping your business in Muskego?
Proximity to freeways Access to metro amenities
Access to my customers Local officials
Access to my suppliers Safety services
Proximity to home Recreation facilities
Cost of doing business Quality of housing
Workforce availability Quality of life
Financial Incentives
Access to support services (printing, advertising, financial)
Other: _________________________________
EMPLOYEES
7. How many employees currently work at your location?
______________________________________________
8. Are you experiencing difficulty in finding suitable
employees for your business?
YES NO
If Yes, what expertise is most difficult to find?
______________________________________________
____________________________________________
9. Are there any areas which your current employees need
training or areas you see a shortage of adequate
employee candidates for your business?
General skills (basic math, reading/writing, problem solving)
Managerial skills (finance, employee management/relations)
Professional skills (sales, marketing, accounting)
Customer service skills (interpersonal communications,
product knowledge,)
Computer skills (word‐processing, database management,
computer system maintenance)
Equipment operation skills
Mechanical skills
Specialized skills
Other skills:_________________________________
10. Is there a certain area school that you look to for a pool
of employee candidates (WCTC, MATC, etc)?
______________________________________________
11. Does your business have difficulty retaining employees?
YES NO
FINANCING
12. What type of mechanism might lead you to expand your
business (purchasing new equipment, expanding jobs, or
expanding structure) the most?
Upfront Grant (Amount? $___________)
One Time Matching Grant (Amount? $_______)
Low Interest Loan (sub 2% rate) ($________)
Other:______________________________
13. The City is considering offering monies to companies to
complete Customer Diversification Assessments. A
consultant works with a manufacturing business
customizing assistance through consultation providing
companies with ways to replace lost business, diversify
across industries, reduce vulnerability to market
downturns, focus on the best market segments, and
find/reach new customers in new markets. Would you be
interested in this if the City of Muskego offered this?
YES NO
BUSINESS PLANS
14. Are you considering modernization, renovation, or
expansion now or the future?
None at this time
Warehouse space
Manufacturing/Production space
Office space
Parking area
Adding another department, division, or business
Expansion into adjacent space
Expansion by acquisition
Other:_________________________________
15. Do you face any constraints to expansion? If so, please
select all that apply:
Need financial assistance
Need info on city and/or state tax incentives
Insufficient space in existing building
Not enough land for expansion
Parking issues
Zoning and building regulations
Other:_________________________________
16. Does your company have any other company locations?
YES NO
If so, where?
_____________________________________________
Would there be a chance of consolidating in Muskego?
YES NO
MARKET
17. What are the two most important trends influencing
your industry over the next two years?
______________________________________________
______________________________________________
______________________________________________
18. Do you foresee any regulatory changes in your business?
YES NO
If so, what?
______________________________________________
______________________________________________
19. What major products used in your business are
purchased outside of the City of Muskego?
______________________________________________
______________________________________________
______________________________________________
______________________________________________
20. What business inputs, materials or services, would you
like to purchase locally that you currently purchase from
outside the area (We might be able to find an alternate for you)?
______________________________________________
______________________________________________
______________________________________________
21. Are there any local suppliers who could supply your
major product that you are aware of?
(Please list possibilities if so)
______________________________________________
______________________________________________
______________________________________________
______________________________________________
22. Would it be advantageous for you to have a supplier
located in the City of Muskego or generally closer than
where they are currently located?
YES NO
23. Where are your primary competitors located?
______________________________________________
______________________________________________
______________________________________________
24. Where are your customers primarily located?
______________________________________________
______________________________________________
Thanks for your time in this matter! Please mail back the survey in the postage paid envelope provided when you have time.
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
Staff will be bringing in the Marketing Plan Implementation log to show the large progress on items we’ve completed
over the two years. Staff will highlight some of the newest items as well.
MISC. BUSINESS ITEM #1:
Redevelopment District Development & Other Miscellaneous Information Updates
RD #2 Rezoning Petition: A new rezoning petition has been submitted for what is known as the Dilworth and Hewitt
properties along Little Muskego Lake just north of Pioneer Drive. We went over this at our last meeting when it was
submitted as a 30+ unit development proposal that had a mix of single family homes by the lake and multi-family
structures up along Janesville Road. The new proposal is attached in the supplement herein and staff can take any
comments from the CDA forward to the Council for their knowledge.
As we noted during the first proposal, the Redevelopment District #2 Plan does not have any specific implementation or
recommendation items for this area since it was not thought of as an area that would have changed land uses back
when the RD#2 Plan was approved. However, any comments from the CDA on how this proposed development fits
within how the CDA views the makeup of the City’s downtown and Redevelopment District #2 can be made known. A
public hearing for this development will be on September 23rd at 7 pm before the Common Council.
RREEAALL EESSTTAATTEE:: DDEEVVEELLOOPPEERRSS BBUUIILLDDEERRSS PPRROOPPEERRTTYY MMAANNAAGGEEMMEENNTT SSAALLEESS
8575 W. Forest Home Ave., Suite 160 Greenfield, WI 53228 Office (414) 425-4939 Fax: (414) 425-4946
August 26, 2014
PROPOSAL
Ener-Con Companies Inc. is seeking zoning and city approvals to develop 3 parcels on Little Muskego Lake. The
parcels include two residential homes (MSKC 2193970029 & MSKC 2193970028) and the former DJ’s Bar and Grill
(MSKC2195999) all located on Janesville Road just north of Pioneer Drive. The zoning is currently PD-14 Bay
Breeze Planned Development. This proposal is sought to amend the boundaries of the district to now include the
parcel to the west (MSKC2195999) formally known as DJ’s Bar & Grill.
The development would keep the easternmost home (MSKC 2193970029) and remove the westernmost home
(MSKC 2193970028). This would pave the way for 5 new garden homes along the lake frontage and one multifamily
building along Janesville Road.
GARDEN HOME COMPLEX
The Garden Home complex would be a private gated complex of five single-family residential homes. The homes
would be high-end architecture and have private lake access. Each garden home would have their own pier. A private
pool would be part of the complex along with gated access. The homes will range from 3,000- 4,000 square feet, 3-4
bedrooms, and 3-4 car garages. An average sales price of $700,000 - $900,000 per home is envisioned. Architectural
drawings will be submitted at a later date and are subject to all municipal requirements, restrictions, and approvals.
MULTI-FAMILY CONDOMINIUMS
The proposed multi-family building will consist of 12 condominiums. Eight of the units will average 1,800 sq. feet,
allowing 2 bedrooms and a den. The remaining four units will be approximately 1,600 sq. feet, and will accommodate
2 bedrooms each. The average sales price is $250,000 per condominium, each unit producing lake views. The
condominium documents and bylaws will allow for an option to rent. The development should work well in a
downtown promoting walkability for its residents and bringing a good density of people to the area amenities.
Architectural drawings will be submitted at a later date and are subject to all municipal requirements, restrictions, and
approvals.
ZONING & DENSITY
The current zoning of the two easternmost parcels is PD-14 while the westernmost parcel (DJ’s) is currently zoned
RL-3 Lakeshore Residence District. The proposal is to change the westernmost parcel from RL-3 to PD-14 zoning.
The Bay Breeze planned development was approved back in 1990 and allowed the 74 units of Bay Breeze
condominiums as they exist today. Originally the city approved a mixed use facility (offices & restaurant) and a
seven (7) parcel single family development for the PD west of the Bay Breeze condominiums. Over time the PD was
amended to remove the mixed use facility, but up to 10 units of residential were allowed in its place. Along with the
prior seven (7) units of residential, a total of seventeen (17) units were allowed where four (4) single family structures
now exist today.
The former DJs Bar and Grill property is zoned RL-3 which allows land divisions under the RS-3 density (15,000 SF
per parcel). Recent approvals for that site by the Council did allow up to four (4) units of residential along with the
allowance to rebuild a bar/restaurant.
The three parcels combine for a total of approximately 6.17 acres or 268,765 square feet. Eighteen (18) total units are
proposed in this plan which equates to 3 units per acre or 1 unit for every 14,931 square feet.
In all, there would be a total of twenty (20) units now west of the Bay Breeze condos consisting of the three (3)
easternmost single-family residential homes to remain, the five (5) garden homes, and the 12 multifamily
condominiums. The proposed development still fits within the Comprehensive Plan density originally allowed for the
Bay Breeze Condominiums.
2020 COMPREHENSIVE PLAN
The 2020 Comprehensive Plan has this area reserved for Medium Density Residential Uses (1-2.99 units/acre OR up
to 1 unit for every 14,568 square feet (43,568 SF/2.99)).
It should be noted that the 2020 Comprehensive Plan states the following of which this proposal promotes:
Housing Objective: Develop new neighborhoods or individual developments that increase the diversity of housing
options in the city, consistent with the City’s Land Use objectives.
Housing Recommendation: Adopt the 2020 Future Land Use Map proposed in this Plan. This Plan is largely an
extension of the 2010 Plan. It allows for a mix of densities of developable land that provide a diverse array of
housing options, which include affordable opportunities and housing for elderly. This will work to keep families
together and allow diverse populations to exist. While some lands will allow low-density single-family
development, opportunities will still exist in some of the more urban areas of Muskego for higher density
residential uses and mixed-use developments.
Economic Development Recommendation: The downtown of Muskego (generally located along Janesville Road)
should be focused upon in order to facilitate groupings of viable businesses. The downtown should work around
the future Janesville Road reconstruction project to incorporate a sense of place and destination for residents and
visitors. The following recommendations are sought to aid the future viability of Muskego’s downtown:
Explore the formulation of a Business Improvement District (BID) pursuant to Wisconsin Statutes once
increased development of the “downtown” takes place.
Encourage, where applicable, a high degree of commercial, retail, office, and residential use in the
downtown area. Continue to allow amendments to the Zoning Code, when required, to permit greater
flexibility in the uses of downtown property.
Work towards a “park-once-and-walk” downtown.
Amend the Downtown Design Guide to reflect the identities and boundaries found within the “downtown.”
It should also be noted that the City of Muskego adopted Marketing Plan states the following of which this proposal
promotes:
Janesville Road Corridor Specific Strategies:
Look for opportunities for high-quality multifamily development.
Target opportunities for mixed-use, multi-story development to bring more office and residential density to the
corridor and the center of the community.
FUTURE SUBMITTALS
Upon approvals of the rezoning the proper approvals from the City’s Planning Commission will be sought to ensure
the proposal meets City ordinances (access, architectural design, etc.) and proposes the appropriate buffers to fit well
into the neighborhood. Full architectural and site plans would be submitted for the multifamily as well as the garden
homes. Land division documents as required would also be submitted.
CLOSING
This development would increase the City’s tax base, provide housing for the growing community, would remove the
zoning of a restaurant and/or bar and should have little if any impact on the school district.
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MISC. BUSINESS ITEM #2:
Next Meeting Date
Tuesday November 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: ~$600,000+
TIF 8 Balance: ~$200,000