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Commuinity Development Authority- MINUTES - 12/16/2004 CITY OF MUSKEGO Approved 1/27/05 COMMUNITY DEVELOPMENT AUTHORITY (CDA) Audio recording of meeting MINUTES is also available. Thursday, December 16, 2004 CDA Chairman Frank Waltz called the meeting of the Community Development Authority 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, Suzi Link, Gail Miles, Frank Waltz, Ald. Schroeder and Ald. Nancy Salentine with David Lidbury absent. Also present Mayor Slocomb, Ald. Borgman, Ald. Melcher, Interim Plan Director Jeff Muenkel, Finance Director Dawn Gunderson, City Assessor Laura Mecha GUESTS: 4 APPROVAL OF MINUTES November 18, 2004 Commissioner Link moved to accept the minutes for the November 18, 2004 meeting of the CDA. Ald. Salentine seconded. Upon a voice vote, the motion carried 5-0 (with Commissioner Miles abstaining). OLD BUSINESS None NEW BUSINESS Update on Parkland Mall Property Interim Plan Director Muenkel reported the CDA chairman has directed staff to work with consultants to determine options and alternatives related directly to the Parkland Mall property. Final decisions aren’t anticipated to be discussed until January 2005. In the meantime, the CDA is moving on and exploring other economic development opportunities in the city and a few of the opportunities will be discussed later tonight. A letter was received from the Parkland Mall owner’s attorney and a copy was distributed. The agendas for the CDA went out over a day prior to receiving the letter. Once again, final decisions aren’t anticipated to be discussed until January 2005 regarding the Parkland Mall property and the CDA will address the contents of the letter, if appropriate, at that time. The recent changes in the Parkland property were discussed. In November 2004, the landowner obtained a Land Disturbance Permit to remove the asphalt from the property from the Engineering Department. A grove of approximately 3,000 evergreen tree seedlings (as reported by the Muskego Sun on 12/9/04) are now being planted in an effort to CDA Minutes December 16, 2004 - page 2 convert the lands to an agricultural use. There was some concern from the CDA members on a couple of issues: 1. How can this be allowed without CDA approval since the zoning is for commercial uses? 2. How can a property be assessed at a lower rate when the highest and best use is commercial? The answer to the first question is that agricultural uses are allowed in the commercial zoning district that the Parkland Mall property resides in by right and without actual redevelopment, there is no say in the change of use. The second question, relating to the assessment, is allowed due to the 1995-97 Budget Act for the State of Wisconsin, which changed the standard for assessing agricultural land in Wisconsin from market value to use value. The goal was to protect Wisconsin's farm economy. Overall, the use of the land is the most important factor in determining its assessed value. City Assessor Laura Mecha answered further questions regarding the issue of the assessment. Review of 2005 Approved Budget Interim Plan Director Muenkel reviewed the budget that was approved for 2005 in the amount of $45,075. Finance Director Gunderson added that the wages and benefits for the city staff was budgeted and approved under the Planning Department’s budget. Future Options for CDA to Pursue Interim Plan Director Muenkel outlined future options that the CDA could pursue for economic development in the city. TIF 8 Everyone is aware of the possibilities of amendments to TID #8, however, the CDA will wait until the supporting information about the Parkland Mall property from the consultants is acquired before the possibilities of the TID are formally discussed. It was commented that there are other parcels in the current TIF district that could benefit from development incentives and that the city is well aware of this potential. Redevelopment District #1/TIF 9 is along Janesville Road from Moorland Road west to the northeast boundary of College Avenue. The Redevelopment District #1 and the TIF #9 District encompass the same boundaries. Unfortunately, there are no remaining monies available in TIF 9 and to acquire additional monies, the TIF would have to be amended. The TIF does allow for much of the same incentives as TIF 8, which includes development incentives. At this time, there are many vacant commercially zoned properties that could aide from development incentives and this may be a viable option. The easiest mechanism would be to solicit the property owners, notifying them of the TIF 9 capabilities and inviting them to provide possible development / redevelopment concepts. The CDA might want to put a deadline on these concept proposals in an effort to accelerate the process of the TIF amendment. The CDA would have to first direct financial staff/consultants to see if amending the TIF for development incentives is financially feasible. TIF 9 may need all increment from the current properties just to pay off the initial amount of the TIF. CDA Minutes December 16, 2004 - page 3 Revolving Loan Fund is available for business in Muskego. The Revolving Loan Fund has been available for new and existing businesses for sometime in the City of Muskego. Unfortunately, businesses just don’t know much about it, thus, the need for more promotion is needed. One suggestion is to direct staff to present what a Revolving Loan Fund can do via public hearing at an upcoming CDA meeting. Also, an easy to use pamphlet should be developed that can be distributed to new and existing businesses. There is $540,000 available. A loan request would have to be a minimum of $20,000 to a maximum of $100,000 and are matching funds. The funds were initiated from a grant from the State. To be eligible, the business must be in Muskego, have one full-time job, must make 51% of the jobs available to lower to moderate-income levels. The tool can be very beneficial assisting businesses in the following ways for: purchase, rehabilitation, renovation, or construction of a building; site acquisition and preparation; purchase of furniture, fixtures, and equipment; financing of working capital. Bonding Authority/Grant Opportunities Interim Plan Director Muenkel stated that as of this time there isn’t much use of the bonding authority without a direct income source. The bonding authority was used in relation to TIF 9, however, the TIF revenue was used as the source of payback. The key to utilizing the bonding authority without a TIF in place is to develop some sort of income whether through land acquisition and sale or through city provided monies. There are grant opportunities for community development, however, many are matching grants. A grant could be useful option for the CDA given the possibility of generating some income. Most economic development grants are due at the end of a given year and this could be a viable option for next year pending any additional monies the CDA may generate. Redevelopment District #2 is along Janesville Road, from Lannon to Parkland, and encompasses the Parkland Mall property. Interim Plan Director Muenkel called to the CDA members attention that there is a city-owned piece of property along Janesville Road across from the Muskego Public Library. The lot has had a wetland and environmental lands delineation completed and it has revealed that a large portion of the land fronting Janesville Road could be used for development, as the rear portion of the lot is the only area needed for original storm water purpose. The parcel is currently zoned B- 4/OPD/OWP, which allows a variety of opportunities for commercial and mixed uses. The land is already appropriated for commercial uses in the City’s 2010 Land Use Plan as well. Staff believes that this property could be split into a piece of real estate that allows up to approximately 2 acres of developable land. The first step would be to make motions for Council to review and approve a request that Council effectively “give” the remaining developable portion of the property along Janesville Road to the CDA for future development purposes. This could result in CDA developing a revenue account if they were able to sell the property. The CDA could enter into agreements with buyers to ensure that after the sale of the property, a developer would follow through with a certain type of development. A second request to the Council would be to recommend the appropriation of funds to acquire lands for development. Such a request could help in a couple of ways. Outside funds could aid in acquiring the lands directly adjacent to the city owned lands previously mentioned. The CDA could then offer a developer a larger area for development if these adjacent properties could be attained. CDA Minutes December 16, 2004 - page 4 Also, additional funds could aid in starting a CDA development budget that can be specifically used for acquiring lands and to help match future grants. Staff felt the request should be made to Council to start the conversation on possible use of funds for realty investments. Ald. Schroeder stated that the industrial park on Racine Avenue is aging and in need of some infrastructure updates. He asked if there would be grant opportunities for that type of work as there is available some funds earmarked for the industrial park that could be used as matching funds? Interim Plan Director will get more information on such a grant if it is available. Ald. Salentine moved to have the CDA take to Council to see if they would allow that piece of property along Janesville Road to be given to the CDA for development. Commissioner Link seconded. Upon a voice vote, the motion carried unanimously. Interim Plan Director Muenkel said another issue was to figure out what monies are available for the CDA to use for acquiring additional properties or for matching grant funds. Ald. Salentine moved to go to Committee of the Whole of the Common Council at the January meeting for funding, for the availability of money for the CDA to acquire property for development and matching funds. Commissioner Glazier seconded. Upon a voice vote, the motion carried unanimously. CDA members recognized that they need to do more to promote the Revolving Loan Fund. Ald. Schroeder stated the fund needs to be promoted citywide. Ald. Salentine remarked that many do not want to apply because they are required to reveal much of their private life. Commissioner Miles suggested the Chamber of Commerce might be able to help promote it. Interim Plan Director Muenkel stated that many find the application for the loan too intimidating. He said some communities have one individual to work as an advisor with people on these loans. Commissioner Miles said they should check to see if there is a generic pamphlet on the program. Interim Plan Director Muenkel stated there were a couple generic ones. It was the consensus of the CDA members that city staff come back with suggestions for the CDA to act on at the next meeting. Ald. Schroeder moved to have staff look into the availability of grants for roadway, lighting or signals, infrastructure improvements for the existing Racine Avenue industrial park, with the understanding that if there is matching funds from the city, to move forward to see whether the Common Council is interested in using these funds for the future. Commissioner Link seconded. Commissioner Link asked if the CDA can be a funding source for a project that has not been defined as a redevelopment district? Interim Plan Director Muenkel said a lot would depend on the grant. Ald. Schroeder stated they may have to make that area a redevelopment district. This could be done at the point where the CDA would move forward with the grant. Commissioner Glazier voiced his concern about working outside a redevelopment district. Upon a voice vote, the motion carried unanimously. In response to Interim Plan Director Muenkel’s concern regarding the funding for TIF 9, Ald. Schroeder moved to have the Finance staff look into the status of funding for TIF 9 and Redevelopment District #1 and report back to the CDA in January. Ald. Salentine seconded. Upon a voice vote, the motion carried unanimously. CDA Minutes December 16, 2004 - page 5 PUBLIC INPUT Attorney Dick Frederick, representing Parkland Ventures, stated that certain aspects of the development activities undertaken by the parties have been misrepresented in the press and other venues. He wanted to dispel some of those issues. He reviewed briefly some of the issues that were contained in the letter to the CDA, dated December 14, 2004. NEXT MEETING: The next meeting was scheduled for Thursday, January 27, 2005. MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW: Ald. Schroeder asked about the limo business on Janesville Road being approved at the Plan Commission level and since it was within the Redevelopment District #2, should it have been reviewed by the CDA? Interim Plan Director Muenkel stated that the way it is now the review of the plan is at the Plan Commission level. The permits are pulled, then it goes on to the CDA after everything is approved. The CDA may want to recommend to the Common Council where the CDA review would occur in the timeline. Chairman Waltz would like more clarification on this issue. ADJOURNMENT: There being no further business, Commissioner Link moved for adjournment, seconded by Ald. Salentine. Upon a voice vote, the motion carried. Meeting adjourned at 8:18 p.m. Stella Dunahee, CPS Recording Secretary CDA Minutes December 16, 2004 - page 6