Commuinity Development Authority - MINUTES - 1/15/2003
CITY OF MUSKEGO APPROVED,
COMMUNITY DEVELOPMENT AUTHORITY (CDA) AS AMENDED,
MINUTES 2-12-03
Wednesday, January 15, 2003
PUBLIC HEARING
The public hearing to consider the adoption of boundaries and project plan for Redevelopment
District #1 in the Janesville Road/Tess Corners area was called to order at 7:00 p.m. by
Commission-Chairman Frank Waltz.
Those in attendance recited the Pledge of Allegiance.
The meeting was posted in accordance with the Open Meeting Law.
PRESENT: Commissioners Rob Glazier, David Lidbury, Suzi Link, Gail Miles, Frank Waltz, Ald.
Rick Petfalski and Ald. Nancy Salentine
Also in attendance Finance Director Dawn Gunderson, Mayor Slocomb, Plan Director Brian Turk,
Assistant Plan Director Dustin Wolff and Mr. Dave Anderson.
GUESTS: 22 (Sign-in sheet is filed with the official record.)
CDA Secretary Gail Miles read the notice of the public hearing as published in THE MUSKEGO
SUN on December 19 and December 26, 2002.
CDA Chairman turned the meeting over to Plan Director Brian Turk to explain the development
district plan. With the aid of power-point presentation to better explain the project and the
involvement of the CDA, Plan Director Turk began with a brief history of the events that brought the
city to this point in time. The Waukesha County Department of Transportation’s road widening and
reconstruction project for Janesville Road (County L) scheduled for 2004 was the catalyst to start
this project. In 2004, they will be doing a reconstruction of Janesville Road from the city limits
westerly to approximately Golden Country Drive which is just east of the Kohl’s development. As a
part of their project, the county issued an edict to the City of Muskego to get underground utility
work or reconstruction work on existing utilities done in 2003 so that the new roadway would not be
torn up by such projects after 2004. Over the past two years, a number of committees and the
Common Council have done a series of projects and work plans for the Tess Corners/Janesville
Road area including the Mayor’s Task Force on Economic Development which has prepared
architectural design guides for redevelopment opportunities. The Plan Commission and the
Mayor’s Task Force on Economic Development have proposed changes in zoning regulations for
the area and those have been through public hearings. Last night, the Plan Commission held a
public hearing on the tax increment financing for water mains and burying of the overhead utilities
in the area. It includes this body which is considering the adoption of a redevelopment district. He
explained the reasons for the two hearings on the project. The Plan Commission tax increment
financing laws and the Community Development Authority’s redevelopment laws are adopted
under two separate Wisconsin Statutes. They follow almost identical courses of action, but they
require separate courses of action. Both entities had to have their own public hearing.
CDA Minutes, January 15, 2003, page 2
The background of the redevelopment district is based on the county’s reconstruction of Janesville
Road to begin in 2003 and street work in 2004. The city will be installing water mains and burying
the overhead utilities. The county’s reconstruction is resulting in the loss of seven businesses and
three residences in the area. This will promote development and redevelopment in the Tess
Corners area. The project area that the Plan Commission and the Community Development
Authority are addressing runs from the intersection of Moorland and Janesville Roads, then up the
Janesville Road corridor to the city limits at College Avenue. It will encompass properties on both
sides of the road with the exception of residential subdivisions that have no street frontage or
driveway frontage on Janesville Road. Those residential subdivisions would be Golden Country
Estates and the Fountainwood subdivision.
The role of the CDA is complimentary to the Plan Commission and Common Council’s roles of tax
increment financing. They provide tools to prevent property value loss or stagnation. They
promote places for commerce, employment, housing and improved living environments and they
undertake urban renewal and development projects which compliment the tax increment district
plan. The CDA has powers to acquire real estate or personal property and may sell, lease,
subdivide, retain or mortgage property. He continued, that this particular project plan does not
anticipate that the CDA will undertake those particular options but they are powers of the CDA by
Statute. The CDA can receive federal and state grants for improvements in the district. It can
borrow and issue bonds and those bonds are double-tax exempt which means exempt from both
state and federal taxes whereas the tax increment district bonds that can be issued by the
Common Council are only exempt from federal taxes. These bonds are generally more favorable
for buyers as they have a better return. However, in order for the CDA to exercise its powers, it
has to determine that there is blight in the district. By Statute, blight is a very broad term. The
CDA was provided with a memo prepared by members of the Planning Department staff which
describes the blight observations and makes a preliminary determination that there is blight. The
observed conditions are a history of haphazard development of land. This relates back to the
1950’s freeway plan where a beltline freeway was proposed to go through Muskego. As a part of
that, the Tess Corners Industrial Park was developed, however, the freeway plan disappeared and
the City of Muskego was left with a poorly located industrial park. Reconstruction of the Janesville
Road which bisects the district is resulting in a loss of over $1.6 million in value on those ten
properties of a residential nature. According to the assessor’s records, the housing stock is of
average quality construction materials. They are generally adequate materials. Some are in
degrading condition and some are in improving condition. The overall quality is rated a C+ by the
assessor’s office. As with residential development, other grades of commercial industrial
properties are rated as a C which is average; some are higher, some are lower. There is a lack of
municipal water in the area. The nearest water main is at the Kohl’s development. This
encumbers redevelopment activity as many new projects of a commercial nature require sprinkler
and fire suppression systems. Without those systems in place, it becomes cost prohibited to
develop and meet the fire codes. Parts of the district are subject to a periodic flooding which
encumbers some development in the area around Schaumberg’s Suburban House and the former
Prestige Auto where the Tess Corners Creek runs through the district. Also, the presence of
above-ground utilities hinders redevelopment in the area. They are mostly an aesthetic issue but
they also have some encumbrances of property. Blight factors can be looked at individually or
collectively. There are substantial number of features in structures, the layouts. unsanitary and
unsafe conditions relates to the water main, diversity of ownership relates to the number of small
CDA Minutes, January 15, 2003, page 3
parcels in individual ownerships which makes development opportunities difficult under current
standards. Most new developments require larger lots than what is in the Tess Corners area
currently. The new zoning codes that have been prepared but not adopted may address some of
those. Finally, the existence of conditions which endanger life and property by fire and other
causes and the lack of water main falls into that category. Again, the blighted conditions,
collectively or combined, substantially impair the sound growth of the community. Without
intervention by the CDA, the areas redevelopment potential is hindered. The lack of water mains,
in Statutory terms, are menace to the public health, safety, morals and welfare in its present
condition.
As they move into the balance of the project plan, Statute requires an inventory of what is in the
area. In looking at land use, it is very diverse throughout the Tess Corners project area with single
family, two family, and multiple family residential development and combinations of commercial and
light industrial development as well as institutional development—churches and schools. The 2010
comprehensive, land-use plan calls for the Tess Corners area to remain mixed land use. This
exemplifies traditional neighborhood patterns of development, generally, the type of pattern that
existed in most communities prior to World War II. Wisconsin’s smart growth planning laws
adopted in 1999 call for every community to return and to promote that type of development.
Continuing Tess Corners in its current state, actually falls in line with State Statute on planning law.
The Statute requires the discussion on standards for population density. Because of its small lot
size, Tess Corners has a higher density of development than the balance of Muskego. The
comprehensive plan calls for densities of 1.6-2.9 dwelling units per acre of land which comes out to
about 6.5 people per acre; the general pattern of development in Muskego is 4-5. The new
development activity, otherwise, generally complies with the adopted comprehensive plan. Statute
requires addressing lot coverage and building intensity. Under existing and proposed zoning
codes, all residential properties are required to provide green space and the total amount of
impervious surface is limited for properties, depending on whether it is commercial or residential.
The proposed zoning ordinance that has been to public hearing at Common Council level last
month calls for new set backs which are closer to the street than what is currently allowed which is
40 feet in most cases. Buildings could be as close as 10 feet. The new development still meets
the same land coverage and building intensity requirements of the existing zoning code, but it
provides more residential feel with the surrounding properties. The new zoning district is proposed
for portions of the project area. This is called the HC1 Tess Corners Historic Crossroads District
prepared by the Mayor’s Task Force on Economic Development, recommended by the Plan
Commission, and a public hearing before the Common Council. Action is not expected to be taken
on creation of this district until the Common Council takes action on whether or not to approve the
tax increment district plan and the redevelopment district plan as proposed by the CDA. The
earliest that could happen is February 25 of this year. The area for which zoning changes have
been proposed are the portions of the project area generally between Durham Drive and Woodland
and Tess Corners. There is a small portion east of Tess Corners, the Club 24 property and the
Terra Firma property. These are the areas that represent the traditional neighborhood
development.
The project costs that is anticipated the CDA may become involved in or with this plan’s adoption
would be eligible to become involved in, is the burial of the utility wires to an underground status,
and assisting with converting services on private property, including code upgrades and
connections. The water main would also be a part of this. They would also be involved in storm
CDA Minutes, January 15, 2003, page 4
sewer improvements, mostly in the Tess Corners Creek area, landscaping including berming,
street trees, decorative lighting, and related accessories. Also, incentives given to developers to
spur economic development in the area. The CDA is eligible to acquire property both through
negotiation and through condemnation. This project plan does not contemplate the CDA acquiring
property. The CDA in its discussions has not contemplated acquiring property and no
condemnation of land is proposed by this project plan. This is very important because there is
certain statutory steps that have to be taken in addition to the ones that have been taken if those
actions are proposed; therefore, if this CDA plans to acquire or condemn property at a later date,
this project plan will need to be revised and the process for revision is identical to the one taking
place right now which includes a public hearing notification to all affected property owners. A
component of condemnation is often relocation. Whenever government is involved in a land
purchase, and a tenant or owner is displaced, that person is eligible for relocation benefits, either in
finding like accommodations or cash payments. As the CDA is not looking for acquisitions or
condemnations, this project plan does not anticipate the need to relocate anybody. Also, they do
not contemplate any businesses being relocated. However, if that does occur, the project plan will
need to be amended and Wisconsin Statutes regarding relocation will be required to be followed.
Another key component of the project plan is a statement of present and potential value in the
district. In January of 2002, the property in the district had a value of approximately $18.6 million.
Due to the county’s acquisitions and demolitions that have occurred through 2002, as of January,
2003, that value dropped to $17, 600,000. The county will continue to acquire land and demolish
properties in 2003. The city will lose approximately another $550,000 in value. If all of the projects
in this plan are implemented and if all of the land that is vacant in the district is built to its full
potential, the district has a potential equalized value of $22.9 million. This is a value that without
the redevelopment plan and without the tax increment financing district plan in place, would likely
not occur.
Plan Director Turk stressed very firmly that if anyone had any objection to the project plan, they
should state it on the record. They are also eligible to submit their objections in writing within 15
days. The CDA will not be taking action on this plan within 15 days so that they could review those
objections in writing and place them in the record. He stated it became important if they did have
an objection to put that in writing. If at a later date, the CDA proposes a condemnation action on a
property and there is another public hearing, the objection in writing becomes very important. He
advised the general public that the CDA would be reviewing any written objections and the record
of this meeting at their March 12 meeting. This concluded Plan Director Turk’s formal remarks.
The above-presentation covered the county’s reconstruction of Janesville Road, powers of the
CDA, observed conditions of the area, resulting blight conditions, existing land use, 2010 land use
plan, standards for population density, lot coverage, building intensity, ordinances and map
changes, zoning map, anticipated project costs, other improvements anticipated, acquisition of
property, relocation, present and potential equalized value for property tax purposes, objections to
the project plan.
Ms. Heather Schuster (S66W14427 Janesville Road) was the only member of the general public to
address the CDA. She questioned the funding mechanism for the CDA? Plan Director Turk
responded that the Common Council has adopted a budget for the CDA. He explained that,
historically, most CDAs are self-supporting through grant funds and loan programs. There may
CDA Minutes, January 15, 2003, page 5
also be put in place a funding source through developers. Ms. Schuster asked what seven
businesses would be lost in the project? Plan Director Turk stated Club 24, Schaumberg’s
Suburban House, Schaumberg’s Pizza, Prestige Auto, LeDoux Leather, Choir Practice, and
Bushy’s. Ms. Schuster asked the full potential of the former Club 24 property? Plan Director Turk
said the $23 million did not take into account that property. It took into account known
development opportunities and most of those are in the western end of the district. Ms. Schuster
stated that she supported the project.
CDA Chairman Frank Waltz declared the public hearing closed at 7:25 p.m. He informed those in
attendance that the CDA would continue with their regular meeting after a brief recess.
At 7:40 p.m., CDA Chairman Frank Waltz called the regular meeting of the Community
Development Authority to order.
APPROVAL OF MINUTES:
Ald. Nancy Salentine moved to approve the minutes of the January 8 meeting. Commissioner
Lidbury seconded. No further discussion. Upon a voice vote, the motion carried unanimously.
OLD BUSINESS:
TAX INCREMENT DISTRICT #9 (TID #9)
Plan Director Turk informed the members that the Plan Commission held their public hearing on
TID #9 last night. The comments were positive and there were about four people that spoke at the
hearing. The Plan Commission did move to adopt the project plan. On February 25, the Common
Council will consider the plan and must take action by 2/3 vote for approval. If approved, it will
then go to Joint Review Board the first week of February for review, and in March for approval and
certification. After Joint Review Board approval, it will then be submitted to the State Department
of Revenue for certification about the second week of March. This proceeds on about the same
time frame as the Redevelopment District #1 (RD #1).
NEW BUSINESS:
REVIEW INPUT RECEIVED FROM PUBLIC HEARING
CDA Chairman Waltz stated that resolutions needed to be drafted taking into consideration the
input they received from the public hearing. Director Turk called the members attention to the
memorandum distributed from Assistant Plan Director Wolff regarding blight observations. Also,
Attorney Baxter III had drafted four resolutions on the project. Resolutions covered the boundaries,
the blighted areas/properties, certifying the redevelopment plan, and prohibiting new construction.
The resolution on the boundaries will be considered at the CDA March 12 meeting and if approved,
must be approved by 2/3 vote. The resolution on the blighted areas/properties is for the Common
Council and scheduled for their review on February 25. The resolution certifying the plan will be
considered at the CDA March 12 meeting. The final resolution, prohibiting new construction, is for
the Common Council and required by Statute. He explained this prohibition is to maintain the
integrity of the district.
CDA Minutes, January 15, 2003, page 6
The other areas that could be looked at would be a business park preferably on Moorland, or a
location that has easy access to I-43. Another concern of the members was the Sentry strip mall
and the vacancies in that mall. What can the CDA do to get this mall completed and move it
forward? Plan Director Turk stated that the occupancies are increasing in this mall. He’s not as
concerned as he was six months ago. Commissioner Lidbury suggested the CDA think of what
they could do to make the western border more attractive coming into the city. He thought it did
look blighted. Commissioner Link questioned if they need to be concerned about the power plant
coming into the city and that development?
CITIZEN COMMENTARY: No comments.
MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
ECONOMIC DEVELOPMENT STRATEGIC PLAN STATUS
Ald. Salentine questioned when is the economic strategic plan going to be finalized? Assistant
Plan Director Wolff stated they could present something in early fall. There should be available
some market analysis numbers by the March meeting. At the last meeting, they discussed the
results of the visual preference survey and some of the workshops that were held in November. A
market analysis will be presented at their February 12 meeting. The content of the document
should be taking shape in early spring.
REVOLVING LOAN PROGRAM
Plan Director Turk stated one of the things that the CDA can do is administer the city’s revolving
loan program for potential business development with the approval of the Common Council. The
city received a grant from the State about 15 years ago for specific business in the industrial park.
As the loan was repaid, it went to the city for a revolving loan fund. These funds could be made
available for business loans and business expansions in Muskego. The CDA could take
advantage of this.
INDEMNIFICATION
CDA Chairman Waltz asked about indemnification for the CDA? Mayor Slocomb advised that the
CDA and the CDA members are covered under the city’s insurance. The city carries insurance for
indemnification and protection of any officers, volunteers, committees acting within the scope of
law, acting within the legal advice given as individuals and committee. They would be fully
protected.
NEXT MEETING:
The next meeting is scheduled for Wednesday, February 12, 7:00 p.m., Muskego City Hall. At that
time, Plan Director Turk will be presenting the draft resolutions for RD #1 and different alternatives
for boundaries of RD #2.
CDA Minutes, January 15, 2003, page 7
ADJOURNMENT:
There being no further business, Ald. Petfalski moved to adjourn. Commissioner Link seconded.
Upon a voice vote, the motion carried unanimously. Meeting adjourned at 8:15 p.m.
Stella Dunahee, CPS
Recording Secretary