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Community Development Authority Packet - 10/20/2015 CITY OF MUSKEGO COMMUNITY DEVELOPMENT AUTHORITY AGENDA October 20, 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 JULY 21, 2015 PUBLIC INPUT NEW BUSINESS 1. Commercial Building & Site Grant Request: Muskego Auto Body (W180 S7767 Pioneer Drive) 2. Commercial Building & Site Grant Request: Lincoln Pointe Center (S63 W13694 Janesville Road) 3. Business Recruitment Rewards Program Continuation Discussion 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 21, 2015 7:30 AM City Hall, W182 S8200 Racine Avenue CALL TO ORDER Chairman Bob LeClaire called the meeting to order at 7:30 AM. PLEDGE OF ALLEGIANCE Those present recited the Pledge of Allegiance. ROLL CALL Present: Bob LeClaire, Dave Stevens, Lana Arrowood, Bonnie Johnson, Ald. Kubacki, and Director Jeff Muenkel. Absent: Barb Schroeder and Ald. Kapusta STATEMENT OF PUBLIC NOTICE The meeting was noticed in accordance with the open meeting laws. APPROVAL OF THE MINUTES OF MAY 19, 2015 Lana Arrowood made a motion to approve the minutes of May 19, 2015. Bonnie Johnson seconded. Motion Passed 5 in favor. PUBLIC INPUT NEW BUSINESS TID 8 Grant Request: Muskego Beer & Liquor (S75 W17308 Janesville Road) Alderman Kubacki made a motion to approve TID 8 Grant Request for Muskego Beer & Liquor (S75 W17308 Janesville Road) in the amount of $25,000. Dave Stevens seconded. Motion Passed 5 in favor. Business Recruitment Rewards Program Grant Lana Arrowood made a motion to approve Business Recruitment Rewards Program Grant for Matt Quest of Capital Commercial in the amount of $3,000. Bonnie Johnson seconded. Motion Passed 5 in favor. Discussion on future of Incentive Programs offered by the City of Muskego 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 Developments Disc. & Other Miscellaneous Information Updates Next Meeting Date ADJOURNMENT Alderman Kubacki made a motion to adjourn at 8:12 AM. Lana Arrowood seconded. Motion Passed 5 in favor. Respectfully submitted, Kellie McMullen, Recording Secretary NEW BUSINESS ITEM #1: Commercial Building & Site Grant Request: Muskego Auto Body (W180 S7767 Pioneer Drive) STAFF DISCUSSION Enclosed, please find an application for the Commercial Building & Site Grant Program. The applicant is Mr. John Socha who owns the structure and property that houses Muskego Auto Body located at W180 S7767 Pioneer Drive. Mr. Socha requests a matching grant of $1,700 for his $3,400 worth of improvements. The improvements consist of power washing, tuck-pointing, and painting the front façade of the Muskego Auto Body structure. An application and invoice for work can be found in the supplement attached. 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. Since the property 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 and does provide for a more pleasant front facade along Pioneer Drive. It is important to note that Mr.Socha has completed most of the work which is allowed by the grant program. The picture herein shows the building at near completion at this time. We have been encouraging improvements along Pioneer Drive in particular and recently approved the grant for various improvements to the Marx Pioneer Inn across the street. NEW BUSINESS ITEM #2: Commercial Building & Site Grant Request: Lakepoint Church (S63 W13694 Janesville Road/Lincoln Pointe Center) STAFF DISCUSSION Enclosed, please find an application for the Commercial Building & Site Grant Program. The applicant is Lakepoint Church who recently purchased half of the Lincoln Pointe Center property and retail structure located at S63 W13694 Janesville Road. Brian Hofmeister of Lakepoint Church requests a grant of $15,000 for their $133,358.68 worth of commercial improvements. The improvements consist of many redevelopment efforts for this aging site/structure and are detailed below. A full submittal with descriptions and cost proposals can be found in the supplement attached. 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. Since the property 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. The request is for more than the $3,000 maximum though that is in the City’s adopted program. The program does however allow more than $3,000 per the following text: 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%. It will be up to the CDA if the project meets the requirement above to allow more than the $3,000 maximum. Staff believes that due to the considerable redevelopment efforts to both the lot and entire 70,000 SF structure, that the increased grant more than meets the requirements while providing for well above the 50% requirement. It is important to note that the adopted grant program does not allow monies for churches but only commercial properties. While Lakepoint Church now owns the property they are only applying for the grant in relation to the commercial portions of the property that they will own and lease. Lakepoint only is utilizing 20,000 SF, but will own approximately 40,000 SF of the overall 70,000 SF Lincoln Pointe Center structure on the property. The rest of the structure is owned by a private entity and 30% of some of the attached bills will be assumed by this private entity. Lakepoint will be a commercially taxed entity on the portions outside the 20,000 SF they will utilize as a church. Staff has ensured in the grant money calculations below that they reflect factoring out Lakepoint Churches direct associated costs and that they only apply to the commercial uses costs on the property that Lakeland will assume:  The monument sign for the retail center is being redeveloped. The sign is to be fully painted and the retail center will now be known as the Lakepoint Center. A full color electronic readerboard will be added to the monument sign and will be used for various messages relating to the tenants of the retail center. The invoice (SignEffectz) costs attributed to the overall retail center are highlighted attached and account for an approximate cost of $23,486.68.  The entire frontage of the Lincoln Center will be seal coated with some areas repaired (see map attached to invoice). The invoice shows a total cost of $28,406 for this work. The City will attribute $9,942.10 towards these applied grant costs (factored out 30% for the other private entities costs off the top and another 50% off that amount to remove Lakepoint Churches direct associated costs).  The entire sides and rear of the Lincoln Center will be fully re-asphalted (see map attached to invoice). The invoice shows a total cost of $197,900 for this work. The City will attribute $69,265 towards these applied grant costs (factored out 30% for the other private entities costs off the top and another 50% off that amount to remove Lakepoint Churches direct associated costs).  The whole structure is to be re-painted a new earth tone color and remove the grey existing color. Colors should match the color scheme as part of Lakepoint Churches new façade they are completing (see rendering attached). The invoice shows a total cost of $24,900 for this work. The City will attribute $12,201 towards these applied grant costs (factored out 30% for the other private entities costs off the top and another 30% off that amount to remove Lakepoint Churches direct associated costs (30% in this case since the Lakepoint Church façade is about a 30%/70% split in square footage of facades). Overall, staff recommends approval of the grant in amount of $15,000 as the proposed improvements will create an aesthetic resurgence for a large retail center that has struggled in the past. Further this property and associated structure is a gateway to the Muskego community and the proposed improvements will be benefiting seven (7) commercial businesses and their employees in the community. Lakepoint Church info@lakepointmuskego.org PO Box 22 (262) 465-4090 Muskego, WI 53150 www.LakepointMuskego.org September 22, 2015 City of Muskego W182 S8200 Racine Ave PO Box 740 Muskego, WI 53150 To Whom It May Concern: Lakepoint Church is requesting a grant to improve the property owned by the church on Janesville Rd. The property is within the target area that the grant intends to provide assistance. Lakepoint’s property is located within Redevelopment District No. 1. The reason for the request is to assist with the rehabilitation of the existing commercial building. Lakepoint Church is seeking the approval of this grant and loan to help with the repainting of the building, parking lot repairs and paving, and pylon refresh. These funds will only be used to offset the non-church related portion of the property, that is owned by the church. Over 40,000 SQ FT of commercial property (non-church) will benefit from these rehabilitation projects, and improve no less than seven businesses. This request is an amount greater than the standard $3000 grant. The reason for this is because the scoop of these projects will dramatically improve the visual appeal of this property. Lakepoint is also matching funds well above the 50% requirement stated in the grant requirements. The costs associated with these projects are provided for your review. Thank you for your consideration, Brian Hofmeister Page 2 of 2 I HEREBY CERTIFY THAT I HAVE READ AND FULLY UNDERSTAND THE GRANT PROCEDURES AND FAILURE TO COMPLY WITH CITY REQUIREMENTS MAY RESULT IN THIS APPLICATION BEING WITHHELD FROM CONSIDERATION. For Planning Department Use Only Submittal Date:Staff Signature: Signature of the Property Owner: Date:Date: Signature of the Applicant (working as "Agent" for the owner): Print Name:Print Name: If this form has been filled out electronically, please click on the "Print Application" button on the top of page 1 or to the right of this text. Once the application is printed/filled out it can be submitted to the Planning Division along with any applicable information required for your submittal. Please see the attached sheet to ensure that the proper supporting documents are submitted along with this completed form. Council Approval Date:Amount Awarded: Date Project Completed:Date Funds Distributed: Brief Project Description: Required Attachments to this Application: Cost breakdown of the project with this application that is broken down by category (design, materials, labor, etc.). Copies of bids or written cost estimates from contractors. Scale drawing showing alterations, colors, changes or improvements being proposed. Copy of a recent photo showing current condition of the building.                          NEW BUSINESS ITEM #3: Business Recruitment Rewards Program Continuation Discussion STAFF DISCUSSION A couple years ago the CDA and Common Council adopted the Business Recruitment Rewards Program. The program was adopted under the following guidelines and processes detailed below. When the program was adopted the CDA stated that we would relook at the program two (2) years later to determine if the program should continue. To date the City of Muskego has had four (4) applications made as part of the program with one (1) officially coming to fruition for a payment (Spectrum Resources 2015). There is one pending application at this time. Staff believes that as long as the Council continues to allow the funding source for this program (TIF Residual Fund) that we should continue to allow it. The program definitely generates discussion and we know that the program sets Muskego apart from neighboring communities in pursuit of economic development. Guidelines Muskego believes that not all business leads materialize from City Hall. Many business discussions take place in backyards, family events, and everywhere in day to day life that may lead to dialogues about “why not Muskego?” Seeing this, the Business Recruitment Rewards program provides an opportunity to become actively engaged in Muskego’s economic growth and development. The city sets forth this Business Recruitment Program to motivate the everyday citizen to recommend Muskego for that next location of an entrepreneur’s business. In doing so, compensation as outlined below may be approved for the individual that brings that new business, along with new employees, to the Muskego community. Nomination Process Participants who wish to nominate businesses for possible recruitment should submit information on the designated application form attached. Prospective nominations should be made to the City’s Community Development Department as early as possible so that appropriate contacts can be made to verify if the companies meet criteria of the Rewards program. Rewards and Criteria The City believes compensation must be sufficient to act as an incentive for citizens to recommend prospective businesses. The Rewards therefore will be granted as follows:  $2,000 for a business prospect that employs three (3) to fifty (50) employees, or invests $350,000-$700,000 in capital equipment or real and personal property.  $4,000 for a business prospect that employs fifty-one (51)+ employees, or invests $750,000+ in capital equipment and real or personal property ***Bonus of $1,000 for bringing a business that owns and builds a new structure in the community. NOTE: Final reward amounts and variations on award amounts may need clarification based on the merits on how a business meets the above criteria. Final awards determinations are strictly under the recommendation of the Community Development Authority with approval of the Common Council. Qualified Employment Criteria Employment levels will be based on the equivalency of full-time employees who work an average of forty (40) hours per week on a year-round basis. Seasonal employees will not count towards the employment criteria of the rewards program. The calculation of part-time employees for program purposes will be based on the number of hours they work each week, and whether or not two or more such employees equal the work of one full-time person. For example, two part-time employees who work year-round and who each put in twenty (20) hours of work per week will be counted as one full-time employee. Three part-time employees, each employed ten (10) hours of work per week, will not be considered as the equivalent of a full-time employee. ONG Tess STAF -Rea past made gettin owne signs with right Fires past time. more Staff Histo prope inters comm autho profe per b GOING BU s Corners FF DISCUSS al estate sign on having s e for various ng redevelop ers the city w s that would d notations tha development stone propert sign was qu Staff is look e than $300 e would like to oric Tess C erties just w section. Bot mercial or mix orize up to t essional servi below as well SINESS IT Redevelop SION discussion: some of our properties th ped. In coop would pay for denote the as at grants/loans t. The city las ty years bac ite large (4’x king at a 3’x4 ach. o try this on a orners area west of the th of these p xed use. Staff two signs ($ ces budget. N if the CDA de TEM #1: pment Dist We have dis r own real e hat have been peration with and erect ne spects of the p s could be av st did this with ck (example x5.5’) and cos ’ sign which trial basis by . There are Tess Corn properties can ff would look f $600) to com NOTE: A trial esires. trict (#1) Im scussed in th estate signag n struggling i the propert ew real estat property alon vailable for th h the Muskeg herein). Thi st $375 at th would cost n starting in th e two vacan ners/Janesvill n be used fo for the CDA t me out of ou area for such mplementa e e n ty te g e o s e o e nt e or to ur h signage cou ation uld be considdered in Redeevelopment DDistrict #2 as ONGOING BUSINESS ITEM #2: Downtown Redevelopment District (#2) Implementation STAFF DISCUSSION Old Shell Gas Station Frontage Beautification Efforts: REMOVED. Real Estate Signage Discussion: There are a few properties along Janesville that may benefit from a new larger real estate sign as well. It would be up to the CDA if we would like to apply this concept to any of the Janesville Road properties as well or use the Tess Corners area as a test pilot. A couple of key Janesville Road Redevelopment District properties staff would suggest are the following:  Vacant property on the NW corner of Bay Lane/Janesville. Across from new DeWinter Eye Care Gateway building.  Vacant property on the SE corner of Pioneer/Janesville (West of Johnny’s Petroleum). Gateway to Pioneer Drive. Many of our approved redevelopments occurring right now (Westwood Centre and Muskego Liquor) Former Parkland Mall Tax Incremental District (TID) Pioneer Drive Property: City Council has approved moving forward on Public Works building/property expansion. This will open up the opportunity to consider off-loading the old Parks Maintenance garage and property along Pioneer Drive. We will look to get Council approval to have the CDA lead that process and complete and RFP for new development there according to the Redevelopment Plan desires. ONGOING BUSINESS ITEM #3: Muskego Business Park Redevelopment District (#3) Implementation STAFF DISCUSSION -4Front is expanding 15,000 SF and possibly looking to add more than 70,000 SF in coming year -Still following up on business retention surveys -City Council has approved moving forward on Public Works building/property expansion. 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 -Mayor and Jeff have continued to meet with a couple businesses interested in our Moorland corridor and we continue to leverage our TIF there per the Marketing Plan. Hopeful about one in particular by the end of the year. -Made some update modifications to our economic development app that continues to receive many positive comments. A one stop shop for economic development information. Don’t forget about this asset that can be found under “Departments”-“Economic Development”-“Interactive Econ Dev Tool”. Ongoing: Many discussions with new businesses looking to make Muskego a home. Some within a TIF District (Sendik’s) and others simply looking for downtown space. Could have a Council discussion on incentives for one particular new business soon. MISC. BUSINESS ITEM #1: Redevelopment District Development & Other Miscellaneous Information Updates -Former Parkland Mall Tax Incremental District Update MISC. BUSINESS ITEM #2: Next Meeting Date Tuesday December 22nd at 6 pm. More than likely an earlier date will occur to start the Former Parkland Mall Tax Incremental District discussions. Approximate CDA Budgets 2011 Budget Existing Supplies and Expenses $500 Professional Services $3000 Attorney $5000 Property Sale Balance $91,000 Existing RLF Fund Balance: ~$230,000 Existing RD #3 Balance: $52,248.03 TIF Residual Balance: ~$634,000 TIF 8 Balance: ~$276,000