Loading...
Commuinity Development Authority - MINUTES - 3/12/2003 CITY OF MUSKEGO APPROVED 4/10/03 COMMUNITY DEVELOPMENT AUTHORITY (CDA) MINUTES Wednesday, March 12, 2003 Commissioner Vice-chair Suzi Link called the meeting to order at 7:02 P.M. 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, Ald. Rick Petfalski and Ald. Nancy Salentine Also in attendance Finance Director Dawn Gunderson, Mayor Slocomb, Plan Director Brian Turk ABSENT: Commissioner Frank Waltz (excused) GUESTS: Mr. Dave Anderson and Mr. Todd Taves of Ehlers & Associates APPROVAL OF MINUTES: Ald. Rick Petfalsk moved to approve the minutes of the February 12 meeting. Ald. Nancy Salentine seconded. Upon a voice vote, the motion carried unanimously. OLD BUSINESS: TAX INCREMENT DISTRICT #9 (TID #9) PROJECT PLAN STATUS The CDA commissioners were in receipt of a copy of the TID #9 project plan as amended by the Common Council. Plan Director Turk explained that the bids for the Janesville Road water main’s first phase came in substantially higher that what was projected and the second phase came in substantially lower. The utilities committee decided not to pursue the second phase as it was a discretionary project and there was the concern about the escalating cost of the project. In reviewing the project, the assessor noted that there were several commercial land sales in the west end of the district since the first projections. With the re-evaluation next year, the assessor could predict about a 5.5 million dollar increase in values. The base value of the district is going to jump in two years. The district is going to be paid off earlier. The Common Council did amend the project plan to include these changes. The joint review board met on Monday afternoon and approved the plan. It will now be forwarded on to the Wisconsin Department of Revenue for their approval. Mr. Anderson stated this would probably happen after the first of next year. NEW BUSINESS: RESOLUTION #CDA 002-2003: Resolution Of The City Of Muskego Community Development Authority Certifying The Redevelopment Plan For The Redevelopment District No. 1 Project Area To The City Of Muskego Common Council. (Tess Corners). Plan Director Turk informed the CDA commissioners that it was approved by Attorney Baxter for form. This is the second to the last step in creation of the district. Once this is completed, the Common Council will then have to adopt a resolution forbidding construction without their approval. Ald. Salentine moved to approve Resolution CDA 002-2003. Commissioner Glazier seconded. No other discussion. Upon a voice vote, the motion carried unanimously. Presentation by Ehlers and Associates, Tax Increment District #9 Project Plan financing, and review of a timetable for same. Mr. Dave Anderson of Ehlers and Associates distributed a copy of the Preliminary Financing Report to the members. He went over where the money was coming from to pay back the financing for the projects. Tax is collected on the base value as every other tax dollar in the city. For the life of the TIF, the tax is distributed just like every other tax dollar in the city. He explained how the current value is determined. The tax is collected on the new value and pays for the projects in the new district. They have seven years to completely pay for the projects. The value is offset by razing buildings in the area and, then, as new things are built in the area, the value will go up again. The money has to be used to pay principal and interest, too. He went through the mechanism for financing. He stated that a contingency amount of $138,500 was added to the project plan. The reserve fund is for the bondholders’ protection. They want to make sure that the TIF revenues will pay for the projects. The CDA provides money to the city because the city is the only entity that can spend TIF money. The city then transfers the improvements to the CDA, for example a water main, the improvement is then leased to the city by the CDA as the CDA owns the water main through the life of the district, the city uses TIF money to pay the lease, the lease money pays off the bond holders. The seven years the TIF has to spend money begins when the Common Council approves the TIF. He mentioned that the CDA needs to have a public hearing on the lease. AUTHORIZATION TO PROCEED WITH TAX INCREMENT DISTRICT #9 PROJECT PLAN FINANCING Plan Director Turk reviewed the timeline associated with the lease revenue bonds. 3/12/03—CDA authorizes proceeding with issue; 3/25/03—Common Council authorizes CDA to issue debt; 4/3/03—first publication of public hearing notice; 4/10/03—second publication of public hearing notice; 4/16/03—CDA public hearing on lease; 4/22/03— Common Council approves transfer and lease of property; 5/14/03—CDA approves bonds and final lease. Ald. Salentine moved to authorize to proceed with the Tax Increment District #9 Project Plan financing as outlined in the timeline previously discussed. Commissioner Lidbury seconded. No other discussion. Upon a voice vote, the motion carried unanimously. RESOLUTION #CDA 003-2003: Resolution of the City of Muskego Community Development Authority Designating the Boundaries of the Redevelopment District No. 2 Project Area. (Downtown area and Janesville Road generally from Bay Lane to Pioneer Drive). Ald. Nancy Salentine moved to approve Resolution #CDA 003-2003. Ald. Petfalski seconded. Plan Director Turk informed the CDA commissioners that this resolution establishes the boundaries of the redevelopment district and makes a determination of blight. The boundaries of the district were discussed at the last meeting. The members were in receipt of a map delineating the district boundaries as well as the blighted areas and blighted properties. Due to the time constraints, Plan Director Turk and Attorney Baxter suggested, the steps of establishing boundaries and determining blight be combined as they are two steps in the process that don’t require a hearing. In doing a determination of blight, you look at two things—first, determine blighted project area which allows you to do some projects in right-of-ways, etc. and second, determine specific blighted properties which allows the CDA by statute to initiate condemnation actions. With this in mind, the Plan Department staff outlined 27 properties in the district. A memo was prepared determining the blight conditions. Attorney Baxter had reviewed the memo and it met with his approval. This was distributed to the CDA members. It is also attached to the official copy of these minutes as an exhibit. Plan Director Turk stated that based on the findings laid out in the memo, they did make a determination that there is a blighted area and that there are specific properties that exhibit blight as defined by statute for blighted properties. CDA members discussed issues on future amending of TID 8, possible creation of new TIDS for properties outside the existing TID district, responsibility for environmental clean up of property, and the three properties that had questionable lot lines, which may need to be replatted. Upon a voice vote, the motion carried unanimously. REDEVELOPMENT DISTRICT NO. 2 PROJECT PLAN ACTIVITIES TIMETABLE CDA members were provided with a draft of the timeline for the Redevelopment District #2 project plan activities. Plan Director Turk informed them that Attorney Baxter had recommended that they have an informational meeting sometime in the month of April prior to the public hearing. This would be with the CDA and staff in an informal, individual one-on-one format with interested individuals. He thought this could be done at the April 9 regular meeting. He called attention to the CDA special meeting on March 26 to review the draft project plan and action to set public hearing date. He informed them that they might be asked to attend a Mayor’s Task Force meeting when the consultant presents the design principles. These design plans will become a part of the project plan. In regard to the timetable meetings, Plan Director Turk will be alerting the commissioners which meetings they should attend. CDA ADMINISTRATION OF THE ECONOMIC DEVELOPMENT REVOLVING LOAN FUND Plan Director Turk shared with the CDA members that he had met with Mayor Slocomb, Finance Director Gunderson, and Clerk-Treasurer Marenda. They discussed where they are, how they have been structured so far and have been in contact with the Department of Commerce. The policies and procedures for program have been amended and the city will have to update theirs. This issue will be discussed at the Committee of the Whole or the next Common Council meeting for sure. CITIZEN COMMENTARY: No comments. MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW ECONOMIC DEVELOPMENT STRATEGIC PLAN STATUS Plan Director Turk stated that the Vandewalle consultants are doing their preliminary design plans for the downtown area. They will have some artist renditions, which should get people interested and excited in the process, more than a document. They will probably do the revealing in a workshop setting. This will probably occur April 29. The Taureen group gave a quality presentation at the last Mayor’s Task Force meeting. They are now back on their time schedule. NEXT MEETING: The next meeting is scheduled for Wednesday, March 26, 7:00 p.m., Muskego City Hall, to review draft project plan and take action to set public hearing date on RD#2. STATUS OF TID #8 Plan Director Turk reported that Mr. Dave Anderson had run the projections on the basis that the development activity that was projected to occur in 2001 did not occur. The earliest that it could commence realistically at this point would be late 2003 or early 2004 and wouldn’t hit the tax rolls until 2005 for collection in 2006. That delay impacted the TID by approximately $500,000 in project costs that could not be funded. The entire project was $2.8 million. Of that amount, approximately $740,000 was earmarked for developer incentives. There are other projects that cannot be eliminated. The developer incentives is the one line item that loses. This all impairs the TID viability. Mayor Slocomb has talked with the developer on the loss. The developer’s response was the City of Muskego hadn’t considered (1) the increment is going to be far larger than the original $12 million that was talked about for the site—it is going to be $20 million and (2) the interest rates are going to be different than originally projected which will have an offsetting effect. ADJOURNMENT: There being no further business, Ald. Petfalski moved to adjourn. Commissioner Lidbury seconded. Upon a voice vote, the motion carried unanimously. Meeting adjourned at 8:22 p.m. Stella Dunahee, CPS Recording Secretary