Community Development Authority Packet - 3/17/2015
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
AGENDA
March 17, 2015
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 JANUARY 20, 2015.
PUBLIC INPUT
OLD 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
NEW BUSINESS
1. TIF 8 Request: Taihyon Yun (S75 W17301-51 Janesville Road: Westwood Centre)
2. TIF 8 Request: John Jewell (S75 W17226 Janesville Road: Vacant Old Shell Gas
Station Property)
3. WEDC Connect Communities Recommendation of Approval
ONGOING BUSINESS
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
January 20, 2015
6:00 PM
Aldermen’s Room – Upper Level of City Hall,
W182 S8200 Racine Avenue
CALL TO ORDER
Acting Chairman LeClaire called the meeting to order at 6:00 PM.
PLEDGE OF ALLEGIANCE
Those present recited the Pledge of Allegiance.
ROLL CALL
Present: Robert LeClaire, Bonnie Johnson, Bob Mueller, Ald. Hammel, Ald. Di Pronio, and
Lana Arrowood.
Director Muenkel explained Larry Lefebvre has resigned from the CDA. The Mayor will be
appointing a new member.
STATEMENT OF PUBLIC NOTICE
The meeting was noticed in accordance with the open meeting laws.
APPROVAL OF THE MINUTES OF SEPTEMBER 16, 2014
Alderman Di Pronio made a motion to approve the minutes of September 16, 2014.
Bob Mueller seconded.
Motion Passed 6 in favor.
PUBLIC INPUT
NEW BUSINESS
Commercial Loan Request: Mike Fitzgerald Building (S74 W16834 Janesville Road).
Bob Mueller made a motion to approve the commercial loan request for the Mike
Fitzgerald Building (S74 W16834 Janesville Road) in the amount of $33,300.00.
Bonnie Johnson 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.
Alderman Di Pronio made a motion to approve the commercial grant request for
Flores Automation in the amount of $2,187.00. Bob Mueller seconded.
Motion Passed 6 in favor.
Mill Valley Redevelopment District (#4) Implementation.
Marketing Plan Implementation.
MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
Redevelopment District Developments Disc. & Other Miscellaneous Information Updates
Next Meeting Date
ADJOURNMENT
Bob Mueller made a motion to adjourn at 6:45 PM. Bonnie Johnson seconded.
Motion Passed 6 in favor.
Respectfully submitted,
Kellie McMullen,
Recording Secretary
ONGOING BUSINESS ITEM #1:
Tess Corners Redevelopment District (#1) Implementation
STAFF DISCUSSION
Not much new to report as many of our implementation measures in the Plan have been completed. We will look to
different ways of marketing the vacant parcels along Janesville though this summer.
-New church received approval to operate in Storage Master on Sunday mornings.
-Breakfast meeting with Tess Corners Industrial Park owners in conjunction with the Muskego Busi ness Park owners in
near future. Send out Business Retention Survey first later this spring.
ONGOING BUSINESS ITEM #2:
Downtown Redevelopment District (#2) Implementation
STAFF DISCUSSION
-Staff sent out a letter to all business owners along Janesville Road about the possible sunset on the Commercial Grant
and Loan Programs upcoming this July.
-TIF 8 monies discussed earlier tonight and other possibilities upcoming.
ONGOING BUSINESS ITEM #3:
Muskego Business Park Redevelopment District (#3) Implementation
STAFF DISCUSSION
-Working with one business in particular regarding RLF monies. Could be coming soon.
-Breakfast meeting with Tess Corners Industrial Park owners in conjunction with the Muskego Business Park owners in
near future. Send out Business Retention Survey first later this spring.
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
Ongoing: Many discussions with new businesses looking to make Muskego a home. Some within a TIF District and
others simply looking for downtown space. Could have a Council discussion on incentives for one particular new
business soon.
-Our online interactive economic development tool continues to be received well and used often for businesses to find
key information about the city and specific properties. We have updated some of the functionality of that tool as it is
being used more.
-Target Industry marketing will pick up here again in spring with more mailers and follow-ups to expanding Illinois
companies.
-A lot of TIF 10 (Moorland Corridor) leverage is taking place. We will be launching a marketing effort with over 400
brokers in the SE WI area to really demonstrate the few opportunities we have left along with the incentives we can
leverage.
NEW BUSINESS ITEM #1:
TIF 8 Loan/Grant Request: Taihyon Yun (S75 W17301-51 Janesville Road: Westwood Centre)
STAFF DISCUSSION
As the CDA is aware staff has been
working with various property owners
along Janesville Road in our expanded
Tax Increment District #8. This district
ran up to the intersection of Janesville
Road and Lannon Drive, but with the
CDA’s recommendation the Council
amended the district in 2012 to expand
to the west along Janesville Road down to the DeWinter Eye Care building. The main reason the city expanded the
district was to hopefully utilize the approximate $3 65,000 in TIF 8 funds we had leftover. Staff and the CDA have been
working with the new business owners in this area and it has been the statement of the CDA in the past that the CDA
would look to aid improvements to sites/structures in this area with these monies in the forms of minimal grants or vi a
low interest loans. While grants are to be considered, loans were the most desirable since a loan would be paid back
and the monies could then be returned to close the overall TID 8 while also helping to foster new improvements to
sites/structures in the area that would increase the tax base of the TID as well.
As the CDA may recall, we approved a loan and grant request for the Delta Restaurant (Now Niko’s Café) back in 2013.
Delta received a $75,000 loan and a $7,500 grant as part of their site and bui lding improvements. Our second TIF 8 aid
was for the Jewell office building (on the former BP Gas Station site). A $100,000 loan and about $22,500 in grant
monies went towards that.
Our third formal submittal to utilize the TIF 8 monies is from Taihyon Yun who owns the Westwood Centre strip center
building (Where Jerome Drugs is housed) at S75 W17301-51 Janesville Road. Mr. Yun is in the midst of totally
updating the Centre site and building facades. The CDA saw these desired improvements in late 2014 and the Plan
Commission approved them as well.
In all, Mr. Yun is seeking a loan from the city in the amount not to exceed $100,000 and if the city would also entertain
some form of a grant mimicking the existing Commercial Grant Program the city has in plac e. The overall project costs
for Mr. Yun total approximately $200,000. The grant and loan monies would again come from the City’s TIF 8 and TIF
Residual funds. The grant can come from the TIF 8 funds which has a balance of approximately $365,000 and a loan
has to come from the City’s TIF Residual funds that has a balance of approximately $643,000 at this time. The
proposed needs for the loan/grant consist of:
Overhaul the existing parking lot on the north and east sides by removing all asphalt and rep lacing,
Removing the existing concrete sidewalk in front of the center and replacing,
Re-striping the parking lot to maximize the amount of parking stalls,
Add new signage consisting of new or remounted channel letter signage on the building facades and a new
monument sign to be located on the northwestern corner of the parking lot,
Revitalize the structure on the main north façade and the north ends of the west/east facades per the following:
o Demo existing metal roof overhangs, metal flashings, and various fabric awnings down to the existing
brick veneer,
o Add a fully new façade with an arched parapet roof, architectural EIFS cornices/cladding/trim, EFIS/split
face brick columns, enamel cap flashing, and in-lay stucco patterns,
o Utilize earth tone colors for new façade, and
The proposed changes should increase the tax base of the parcel while producing a totally new atmosphere for the
property.
Staff has reviewed the application materials for completeness compared to our usual loan approval processes. Staff has
included in the supplement the loan application and site plans.
The city has always had requested loans be administered by the Southeast Wisconsin Regional Planning Commission
(SEWRPC) initially for review and the same process is being done in the ca se of this prospective TIF 8 loan. Mr. Yun
did submit his personal financials, business projections, and profit/loss sheets which are all a part of the needed
submittal for a loan to SEW RPC. Usually staff has a letter from SEWRPC outlining the various te rms of the proposed
loan. Due to timing of hitting this meeting supplement date that final letter is not in place. Staff intends to share the loan
terms at the meeting. Mr. Yun will have a letter of credit to back up the city’s portion of the loan package.
In all, staff believes that the city should be in good standing to recommend approval of Mr. Yun’s loan for an amount not
to exceed $100,000 and to allow a Commercial grant for $10,000 to go towards the $200,000 in project costs outlined
above.
NEW BUSINESS ITEM #2:
TIF 8 Request: John Jewell (S75 W17226 Janesville Road: Old Shell Gas Station Property)
STAFF DISCUSSION
The parcel in question is the former Shell Gas Station parcel that currently sits vacant and adorned with various years of
asphalt and concrete. The parcel has a recent offer to purchase approved by Mr. John Jewell who owns and has built
the new office structure across the street. Mr. Jewell is seeking purchase of this parcel for future development purposes
but mainly for parking for his tenants and Tres Locos in the area. Mr. Jewell received temporary parking approval from
the City’s Planning Commission with the caveat that he receives permanent parking approval, along with modifications
to the lot, before the summer’s end.
Enclosed in the supplement please find Mr. Jewell’s permanent parking plans for the lot along with his narrative request
for incentives. In all, Mr. Jewell is requesting a total not to exceed of $35,825 in TIF 8 monies to aid in 50% of the land
acquisition and development costs for the lot. The development of the parking lot is to include the full relaying of a new
asphalt coat on the lot, parking lot striping, and the addition of landscaping on the west and north green portions of the
lot.
If the CDA recalls, this piece of land is heavily contaminated. The WDNR has a cap order on the land which means that
the contaminated portion of the land must remain capped with asphalt or concrete at all times. The only way around this
requirement would be to remove and remediate any soils that would be removed under the cap. While this is feasible it
would be costly in most cases. Seeing these issues, Mr. Jewell has found that the highest and best use for this parcel
at this time is via the permanent parking lot. I n order to not have this parcel remain blighted in the city’s new downtown
and seeing that the city has participated in all parcels in this area with the TIF 8, the monies are thus requested. The
parking will aid the daily patrons and employees that go to Mr. Jewell’s building across the street which include ReMax,
Frenz Salon, and Destiny Chocolates. Further, Mr. Jewell has secured an agreement with Tres Locos so that their
patrons may use it as well during the evening hours. One last item is that Mr. Jewell has allowed area for Tres Locos to
erect a monument sign which they had no room for in the past.
In all, staff recommends approval of this TIF 8 grant in an amount not to exceed $35,825 (The grant can come from the
TIF 8 funds which has a balance of approximately $365,000). Offsetting the cost for the property acquisition seems
appropriate in this case as the property owner seems to have a cost a bit higher than what market may usually pay
given that the lot is contaminated. Thus, “but for” the help in TIF monies the parcel may remain vacant and blighted for
many years to come if not taken on by Mr. Jewell. While the immediate use is a parking lot, the use is very beneficial to
the businesses and owners in the area. The parking lot will help the emp loyees and patrons of the area. Further, the lot
benefits multiple businesses. In particular the parking lot will benefit the Tres Locos lot the most. The connection makes
the Tres Locos lot more desirable and usable. Further, the owners of Tres Locos have discussed expansion of the
kitchen and outdoor patio in the past but have had issues with how to do that with the parking situation. This parking lot
scenario now opens up more future expansion possibilities for Tres Locos. Lastly, the overall plan removes a blight and
provides a more attractive place in the city’s downtown and Redevelopment District #2.
RIGHT-OF-WAY PROJECT
As part of this project the CDA will notice that there is a considerable
portion of asphalt between the current Janesville Road sidewalk and the
property line. This is the right-of-way area owned by Waukesha County
and this area is also under the WDNR environmental cap requirement.
Unfortunately the County won’t work with Mr. Jewell as the private owner
to complete any modifications in this area and there are obviously limited
items we can do with the cap requirement.
After some extensive conversations with the city’s landscaping
consultants we have determined that there are only a couple options to
make this right-of-way area look less blighted and work with the parking
lot. One option is to raise the entire area with approximately four inches of
poured colored concrete and then add some of the planters along the
stretch to spruce it up. Another option would be to remove the asphalt in
this area, remove some of the base soils (and remediate them if need be),
add a small asphalt cap and then add topsoil and grass to make the area
look more natural. In the end, the more natural option is most likely the
best. In either case, it appears that about $20,000 of work may be
required. Seeing that the city will want to do something with this area to
mimic the modifications Mr. Jewell is creating, staff is recommending that
the CDA recommend approval to use up to $20,000 of TIF 8 monies for
the remediation and beautification of this right-of-way. Once staff gets more input from the city’s landscape
professionals we will solidify which option to move forward with and get Council approval.
NEW BUSINESS ITEM #3:
WEDC Connect Communities Recommendation of Approval
STAFF DISCUSSION
Staff would like to receive a recommendation of approval form the CDA to the Council for inclusion into the Wisconsin
Economic Development Corporation’s (WEDC) Connect Community Program. The program is essentially a vehicle for
community’s to get services from the State to enhance their downtown areas. The State has a Main Street Program
that past economic development plans and boards of the city have inquired about, however, the city doesn’t qualify for
that program at this time. The Connect Communities Program allows many of the benefits of a Main Street Program to
help aid in enhancing a community’s downtown.
Connect Communities program participants will have immediate access to experienced staff within the Wisconsin
Economic Development Corporation (WEDC) and to the leaders within the Connect Communities Network. Program
services include:
A ListServ/network group to get new ideas from staff and other participating Connect Communities
Participation in Main Street Executive Director Workshops with a focus on downtown revitalization topics
An on-site visit from one of WEDC’s community development staff to assist in identifying needs and offering
assistance
Training for your downtown director or board president
Regional roundtable discussion groups on pertinent topics held once every year
Possible opportunities to link college/university student projects to your downtown/urban commercial district
needs
Roundtable discussion groups on pertinent topics held twice per year
Access to WEDC’s online downtown development library
Access to resources and training materials that have been developed for Wisconsin Main Street communities
Invitation to the annual Main Street Awards Program, plus eligibility to nominate a project for a Connect
Communities award
Webinars/regional training
Up to 20 communities are selected to participate each year and applicants are scored based on the following criteria:
strength of committee/organization, need for assistance, clearly defined downtown/urban commercial district, l ocal
resources available and potential.
Staff recommends approval as this is a close second to the State’s Main Street Program which we have been fond of as
a city for many years. We would hope that the resources the Connect Communities program provides can help us
further our downtown Redevelopment District #2 efforts as well as our Marketing Plan efforts.
MISC. BUSINESS ITEM #1:
Redevelopment District Development & Other Miscellaneous Information Updates
None.
MISC. BUSINESS ITEM #2:
Next Meeting Date
Tuesday May 19th at 6 pm unless an earlier date is needed for any grant/loan requests . May be breakfast meeting
instead in which time staff will contact CDA for availability.
Approximate CDA Budgets
2011 Budget Existing
Supplies and Expenses $500
Professional Services $3000
Attorney $5000
Property Sale Balance $91,000
Existing
RLF Fund Balance: $300,000+
Existing
RD #3 Balance: $52,248.03
TIF Residual Balance: ~$643,428
TIF 8 Balance: ~$365,000