Community Development Authority Packet - 7/19/2016
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
AGENDA
July 19, 2016
6:00 PM
City Hall, W182 S8200 Racine Avenue
REGULAR MEETING:
CALL TO ORDER
PLEDGE OF ALLEGIANCE
ROLL CALL
STATEMENT OF PUBLIC NOTICE
APPROVAL OF THE MINUTES OF APRIL 7, 2016
INTRODUCTION OF NEW CDA MEMBERS
ELECTION OF CHAIR, VICE-CHAIR, AND SECRETARY
PUBLIC INPUT
NEW BUSINESS
1. Commercial Grant Request: BioSource Flavors Inc. (S66 W14328 Janesville Road).
2. Commercial Grant Request: Tess Corners Automotive (W145 S6645 Tess Corners
Road).
ONGOING BUSINESS
1. Tess Corners Redevelopment District (#1) Implementation
2. Downtown Redevelopment District (#2) Implementation
3. Muskego Business Park Redevelopment District (#3) Implementation
4. Mill Valley Redevelopment District (#4) Implementation
5. Marketing Plan Implementation
MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
1. Redevelopment District Development & Other Miscellaneous Information Updates
2. Next Meeting Date
ADJOURNMENT
NOTICE
IT IS POSSIBLE THAT MEMBERS OF AND POSSIBLY A QUORUM OF MEMBERS OF OTHER GOVERNMENTAL BODIES OF
THE MUNICIPALITY MAY BE IN ATTENDANCE AT THE ABOVE-STATED MEETING TO GATHER INFORMATION; NO ACTION
WILL BE TAKEN BY ANY GOVERNMENTAL BODY AT THE ABOVE-STATED MEETING OTHER THAN THE GOVERNMENTAL
BODY SPECIFICALLY REFERRED TO ABOVE IN THIS NOTICE.
ALSO, UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED
INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR ADDITIONAL INFORMATION OR TO REQUEST THIS
SERVICE, CONTACT MUSKEGO COMMUNITY DEVELOPMENT DEPARTMENT, (262) 679-4136.
Unapproved
CITY OF MUSKEGO
COMMUNITY DEVELOPMENT AUTHORITY
MINUTES
April 7, 2016
6:00 PM
City Hall, W182 S8200 Racine Avenue
PUBLIC HEARINGS
Public Hearing Regarding the Proposed Boundaries and Project Plan for Tax Incremental
District No. 11 in the City of Muskego, Wisconsin.
Community Development Director Jeff Muenkel and City TID Attorney Bill Tiabl gave
presentations.
Attorney Nancy Haggerty gave development presentation for developers Ener-con Companies.
The following people spoke:
Kert Harenda, W152 S6391 Lawndale Place
Brian Zalewski, W171 S7354 Lannon
Tom Reck, W180 S6701 Muskego Drive
Suzie Link, W172 S7297 Lannon
Heidi Lindhorst, S75 W18094 Bozhardt Lane
Linda Kuspa, S71 W16672 Glen Cove Ct.
Deb Bolton, W186 S7543 Kingston
Ald. Neil Borgman, S72 W16972 Briargate Lane
Amy Denson, S73 W16802 Briargate Lane
Sharon Stockinger, W170 S7387 Parkland Drive
Ann Dangers, S73 W16834 Briargate Lane
Nancy Stenlund, W170 S7385 Parkland Drive
Laurie Oliver, S75 W17674 Harbor Circle
Mike Kuspa, S71 W16672 Glen Cove Ct
Alicia Hurst - Ener-con Companies
Michael Dillworth – Ener-con Companies
With no further comments, the Public Hearing was closed at 7:47 PM.
Public Hearing Regarding the Proposed Amendment of Boundaries and Project Plan for Tax
Incremental District No. 9 in the City of Muskego, Wisconsin.
With no questions or comments, the Public Hearing was closed at 7:49 PM.
REGULAR MEETING: (Following Public Hearing)
LOCATION: City Hall, W182 S8200 Racine Ave
CALL TO ORDER
Chairman Bob LeClaire called the regular meeting to order at 7:50 PM.
PLEDGE OF ALLEGIANCE
Those present recited the Pledge of Allegiance.
ROLL CALL
Present: Bob LeClaire, Lana Arrowood, Bonnie Johnson, Ald. Kubacki, Barb Schroeder, Dave
Stevens, Ald. Kapusta and Director Muenkel.
STATEMENT OF PUBLIC NOTICE
This meeting was noticed in accordance with the open meeting laws.
APPROVAL OF THE MINUTES OF OCTOBER 20, 2015.
Alderman Kubacki made a motion to approve the minutes of October 20, 2015.
Alderman Kapusta seconded.
Motion Passed 7 in favor.
PUBLIC INPUT
NEW BUSINESS
Community Development Authority Action Regarding the Proposed Boundaries and Project
Plan for Tax Incremental District No. 11 in the City of Muskego, Wisconsin and Approval of
Project Plan (See the Resolution “A Resolution Designating the Proposed Boundaries and
Approving a Project Plan for Tax Incremental District No. 11, City of Muskego, Wisconsin”).
Alderman Kubacki made a motion to approve the Proposed Boundaries and Project
Plan for Tax Incremental District No. 11 in the City of Muskego, Wisconsin and
Approval of Project Plan (See the Resolution “A Resolution Designating the
Proposed Boundaries and Approving a Project Plan for Tax Incremental District No.
11, City of Muskego, Wisconsin”). Bonnie Johnson seconded.
Motion Passed 5 in favor 2 opposed.
Ald. Kapusta and Dave Stevens voted no.
Community Development Authority Action Regarding the Proposed Amendment of Boundaries
and Project Plan for Tax Incremental District No. 9 in the City of Muskego, Wisconsin and
Approval of Project Plan Amendment (See the Resolution “A Resolution Designating the
Proposed Amended Boundaries and Approving a Project Plan Amendment for Tax Incremental
District No. 9, City of Muskego, Wisconsin”).
Alderman Kubacki made a motion to approve the Proposed Amendment of
Boundaries and Project Plan for Tax Incremental District No. 9 in the City of
Muskego, Wisconsin and Approval of Project Plan Amendment (See the Resolution
“A Resolution Designating the Proposed Amended Boundaries and Approving a
Project Plan Amendment for Tax Incremental District No. 9, City of Muskego,
Wisconsin”). Alderman Kapusta seconded.
Motion Passed 7 in favor.
Recommendation Regarding Collateral for TID 8 Commercial Loan (Jewell).
Alderman Kubacki made a motion to deny the recommendation Regarding Collateral
for TID 8 Commercial Loan (Jewell). Alderman Kapusta seconded.
Motion Passed 6 in favor and 1 abstained.
Lana Arrowood abstained.
Discussion and Possible Recommendation on Commercial Grant/Loan Programs Language.
Alderman Kapusta made a motion to keep the Commercial Grant/Loan Program as
is. Lana Arrowood seconded.
Motion Passed 7 in favor.
ONGOING BUSINESS
Tess Corners Redevelopment District (#1) Implementation
Downtown Redevelopment District (#2) Implementation
Muskego Business Park Redevelopment District (#3) Implementation
Mill Valley Redevelopment District (#4) Implementation
Marketing Plan Implementation
MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
Redevelopment District Development & Other Miscellaneous Information Updates
Next Meeting Date
ADJOURNMENT
Alderman Kapusta made a motion to adjourn at 9:06 PM. Bonnie Johnson seconded.
Motion Passed 7 in favor.
Respectfully submitted,
Kellie McMullen,
Recording Secretary
INTRO OF NEW CDA MEMBERS
STAFF DISCUSSION
We would like to welcome a few new members to the CDA tonight. First off, new appointments for Aldermanic
representatives usually take place at this time of year and we are welcoming two new Alderman to the CDA. Alderman
Neil Borgman from District 3 and Alderman John Engelhardt from District 5 will now join us.
Also we welcome new member Joseph Boschert as newly appointed.
The rest of the team is as follows:
Bonnie Johnson
Lana Arrowood
Barb Schroeder
Dave Stevens
ELECTION OF CHAIR, VICE-CHAIR & SECRETARY
STAFF DISCUSSION
At this time in the meeting we will take motions for each individual position for the next year (Chairman, Vice-Chairman,
and Secretary). Basically, the Chairman runs the meetings and discusses items with staff before each meeting if need
be. The Chairman can also request items on the agenda from time to time based on committee input. The Vice-Chair
takes over the responsibilities of the Chairman in the Chairman’s absence. The Secretary calls out the roll call at each
meeting and usually reviews our draft plans in a bit more detail for errors and omissions.
NEW BUSINESS ITEM #1:
Commercial Grant Request: BioSource Flavors Inc. (S66 W14328 Janesville Road)
STAFF DISCUSSION
Enclosed, please find an application for the Commercial Building & Site
Grant Program. The applicant is Dr. Narayan Suresh who owns the
structure and property that houses BioSource Cultures & Flavors located
at S66 W14328 Janesville Road (Tess Corners Area). Dr. Suresh
requests a grant of $13,000 for his $130,000 worth of improvements. The
improvements consist of recladding the west and east facades with the
brick that adorns the south façade (Janesville Road façade). The west
and east facades are very visible elements of the structure along
Janesville Road and the addition of the brick will make a large aesthetic
improvement to this property within the city’s Redevelopment District #2
and Tax Increment District #9 areas. A full submittal and description 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. It is important to note the large
investment being made by Dr. Suresh as well as the visual impact being
made by the project to a Tess Corners area that experiences a lesser
amount of development than the rest of the commercial nodes in the city.
Lastly, although minor, the recladding of the building to a full brick exterior
should add an increased assessment and resulting higher tax base in the future. Dr. Suresh intends to be at the
meeting to discuss this further and answer any questions.
The CDA/Council has not approved any grants thus far in 2016 and only one (1) of the thirty plus grants approved since
2009 have gone towards a business in the Tess Corners area. Staff will be prepared to share the past grant data at the
meeting if the CDA is interested while making their recommendation.
NEW BUSINESS ITEM #2:
Commercial Grant Request: Tess Corners Motors (W145 S6645 Tess Corners Drive)
STAFF DISCUSSION
Enclosed, please find an application for the
Commercial Building & Site Grant Program.
The applicant is Mr. Jim Minelli who owns
the property at W145 S6645 Tess Corners
Drive which is the property on the northwest
corner of Janesville Road and Tess Corner s
Drive. Mr. Minelli requests a grant of
$42,500. The total project costs look to
exceed $1,180,000 with around $850,000
being construction costs. The requested
$42,500 is 5% of the construction costs.
The project is to remove the blight that exists along the
northwest corner of this Tess Corners district to add a new
7,500 square foot automotive repair company. The renderings
and site plan for the proposed site are found herein attached.
Mr. Minelli has received preliminary Plan Commission approval
for this building and is just waiting on completion of a few
floodplain issues before going forth for permits.
A full submittal and description can be found in the supplement
attached which include the application, narrative, and bid sheet
of the construction costs.
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. It is important to note the following when determining the grant
amount the CDA would like to recommend:
The large investment being made by Mr. Minelli.
The tax base/assessment impact to the Tax Increment District #9 that the property is within (current
assessment of $366,200; Firestone down the street at $1 mil+).
The catalyst to development and aesthetics of this Tess Corners area and the surrounding properties.
The CDA/Council has not approved any grants thus far in 2016 and only one (1) of the thirty plus grants approved since
2009 have gone towards a business in the Tess Corners area. Staff will be prepared to share the past grant data at the
meeting if the CDA is interested while making their recommendation.
ONGOING BUSINESS ITEM #1:
Tess Corners Redevelopment District (#1) Implementation
STAFF DISCUSSION
-We have a couple grant proposals on for tonight in this area. Tess Corners Auto is still working at building this year
upon receiving approval from the WDNR on floodplain issues on their lot.
-Muskego Storage, which is located along Tess Corners Drive in the Tess Corners Business Park, is building out their
three new storage units this summer.
-Staff will be looking to get out the 2016 round of Business Retention Surveys to the Industrial Park owners in the next
month.
ONGOING BUSINESS ITEM #2:
Downtown Redevelopment District (#2) Implementation
STAFF DISCUSSION
Old Shell Gas Station Frontage Beautification Efforts: The CDA and Council approved up to $20,000 for the city to help
beautify the Waukesha County owned Janesville Road right-of-way frontage of the old Shell Gas Station parcel. This
was in conjunction with Mr. John Jewell redeveloping the rest of the site into a parking lot with associated landscaping
for his businesses and Tres Locos. The $20,000 was to go towards removing the asphalt in the right-of-way, next to
the sidewalk, and replace it with turf area. This would also provide costs to remove any remaining contaminated soils
and install a liner for any future contamination issues.
After review, Waukesha County would not like to remove an y of the asphalt cap due to liability issues and requested
that the City provide a beautification option that preserves the asphalt cap in some way. Upon investigation, and
approvals from Waukesha County, we have found a viable option as follows:
Instead of turf we would install 5” colored concrete over existing asphalt. Concrete will have a 5" exposed edge
around entire edge which will be finished. Concrete will not be flat but rather follow the contours of the existing
asphalt. Color of concrete will m atch some of the earth tone paver colors existing in the right-of-way.
A series of planters (same as planters already found along Janesville Road) will be staged along the colored
concrete.
As per the original project we will still remove the existing driveway access to Janesville Road and it will be
replaced with the same colored concrete.
The costs for these efforts should minimally exceed the originally exceed the initially expected costs of $20,000. Staff
will be moving forward with this project with a hopeful completion time of Fall 2016.
City Owned Pioneer Drive Property: The city closed on purchasing a new property for the Public work Garage needs in
the past month. Once designs are completed we can discuss a future development request for proposals for the old
parks maintenance building along Pioneer Drive. The CDA will hopefully lead this process and jumpstart another future
commercial or mixed use development along this roadway.
TID #11: The Parkland Towne Center Tax Increment District #11 was fully approved along with the infrastructure plans,
apartment building #1, and the developer’s agreement. Thanks to the CDA for their time throughout this process. A
ground breaking is tentatively scheduled for the afternoon of August 4 th. Lieutenant Governor Rebecca Kleefisch is
expected to attend since we recently found that the state has awarded the city a $500,000 grant to offset infrastructure
project costs. Staff will be sure to get this groundbreaking information to the CDA as ti comes available. Lastly, any
future building plans for commercial structures proposed at the Parkland Towne Centre will be forwarded to the CDA for
informational purposes when they come available.
ONGOING BUSINESS ITEM #3:
Muskego Business Park Redevelopment District (#3) Implementation
STAFF DISCUSSION
-Staff will be looking to get out the 2016 round of Business Retention Surveys to the Industrial Park owners in the next
month.
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
-As mentioned earlier in the supplement staff will be beginning a new round of business retention surveys in the next
month.
-A recommendation in the plan is to keep good relations with outside economic development groups. Staff has been
participating on a committee to aid in developing a new Waukesha County Economic Development Organization. This
should be up and running soon and hopefully this agency will help to benefit the overall County as well as aid in brining
incentive opportunities and new jobs to the Muskego area.
Also, Community Development Director Jeff Muenkel personally authored and submitted an Idle Industrial Sites Grant
thru the Wisconsin Economic Development Corporation (WEDC). The grant was requested for $500,000 to go to the
infrastructure costs of the Parkland Towne Center development. We recently found out that Muskego has received an
award for the full $500,000 requested! Only five (5) grants were extended for 2016 and Muskego is the only one in the
southeastern Wisconsin area. This grant should reduce the city’s TIF District by up to a year as well as reduce our risk
and need for borrowing.
-A major recommendation of the Marketing Plan is to leverage the city’s TIF ability. This has been accomplished many
times over this year with the approval of the Parkland Towne Center and the new 80,000 square foot business structure
going up behind Wal-Mart.
-Staff will be attending a couple economic development conferences this Fall looking for new businesses looking to
expand in the southeastern WI area as well as seeking out new and creative incentive programs.
MISC. BUSINESS ITEM #1:
Redevelopment District Development & Other Miscellaneous Information Updates
-Budget for next year would remain the same.
MISC. BUSINESS ITEM #2:
Next Meeting Date
Tuesday September 20th at 6 pm unless an earlier date is required.
Approximate CDA Budgets
2016 Budget Existing
Supplies and Expenses $500
Professional Services $3000
Attorney $5000
Property Sale Balance $91,000
Existing
RLF Fund Balance: ~$120,000
Existing
RD #3 Balance: ~$50,000
TIF Residual Balance: ~$600,000+
TIF 8 Balance: ~$250,000+