Commuinity Development Authority MINUTES - 3/25/2004
CITY OF MUSKEGO APPROVED 4/29/04
COMMUNITY DEVELOPMENT AUTHORITY (CDA) Audio recording of meeting
MINUTES is also available.
Thursday, March 25, 2004
CDA Chairman Frank Waltz called the meeting of the Community Development Authority to order
at 7:01 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, Frank Waltz, Ald.
Petfalski and Ald. Nancy Salentine
Also in attendance were Mayor Slocomb, Interim Plan Director Jeff Muenkel, Finance Director
Dawn Gunderson.
GUESTS: 24, included Ald. Damaske and Ald. Schroeder
APPROVAL OF MINUTES
Commissioner Link moved to accept the minutes for the February 11, 2004 meeting. Ald.
Petfalski seconded. Upon a voice vote, the motion carried unanimously.
OLD BUSINESS
None
NEW BUSINESS
Update Regarding Concept for the Former Parkland Mall Site
Chairman Waltz recapped briefly the presentation that was given at the February meeting. He
shared with the commissioners several work meetings had taken place since February. On
Wednesday, March 3, Mayor Slocomb, CDA Chairman Frank Waltz, and the developers, Dave
Jorgenson and Steve Stewart, met to discuss alternatives for proceeding with development
planning. A meeting took place on Monday, March 8, to discuss city expectations for forthcoming
agreements and proposals. Mayor Slocomb, Alderman Petfalski, CDA Chairman Frank Waltz,
CDA Attorney Jim Baxter, Attorney Dick Fredrick representing Art Dyer, developers Dave
Jorgenson and Steve Stewart were in attendance at that meeting. Friday, March 12, Finance
Director Dawn Gunderson, Interim Planning Director Jeff Muenkel, Dave Anderson of Ehlers and
Associates and developers David Jorgenson and Steve Stewart met at Ehlers and Associates to
discuss possible amendments to the Project Plan for Tax Increment District Number 8, dated
September 12, 2000. On Tuesday, March 23, and again on Thursday, March 25, telephone
communications took place between CDA Chairman Frank Waltz and developer Dave Jorgenson
CDA Minutes March 25, 2004 - page 2
and they discussed the current status of contractual agreements between the developers and
landowner, Art Dyer, and the developer’s preparedness for the upcoming meeting with the CDA.
Chairman Waltz informed the commissioners the developers are still negotiating with the
landowner on the agreement. At this time, they are not prepared to come before the CDA and
present their financial and conceptual plans. They have no other details than what was presented
at the last meeting.
Ald. Salentine stated that they have now heard three times that they will have a contract by the
next meeting. She didn’t doubt the developers want to get the development done; however, she
did not want to see the tax incremental financing fade away as it is now 3-1/2 years into the 7
years. She was willing to give them another chance. She felt very strongly that if the contract
doesn’t happen by the next meeting, then the CDA needs to go another direction to put the project
forward so the developer can get it done before the increment is done.
Mr. Lidbury said a lot of the people he had spoken to in the community are feeling that they are
being held hostage by an individual. He is constantly being asked what the CDA is doing, as it
looks like the CDA is doing nothing and the city is doing nothing? The people keep seeing the
blighted property and keep seeing the plans that are being presented and nothing happens. It is
his opinion that the CDA is being held hostage. He agreed with Ald. Salentine that something has
to happen if they don’t see any progress by the next meeting or sooner.
Commissioner Link would like to know the CDA’s minimum expectations? If the CDA is going to
draw a line in the sand, the CDA needs to define what would be the acceptable deliverable by the
next meeting. She would not like to hear later that the CDA was not clear what was needed and
what the CDA expects. She agreed with Ald. Salentine and was excited that the developers were
now going to be the guiding force and something was going to be accomplished. She also had
feedback from citizens questioning why the CDA didn’t get the project moving? She would like to
see something in writing for all the parties. Chairman Waltz to formulate a letter to the interested
parties summarizing what the CDA expects.
Chairman Waltz informed the commissioners that they did discuss some of these issues at the
meeting on March 8. Ald. Petfalski stated very clearly at that meeting that the CDA would expect
to see detailed concepts for the structured layout, plus a complete financial Proforma source and
use of funds, the complete financial detail and if they are asking for any taxpayer funds to be used
through the TIF to make the project happen. It was explained to them that once those financial
packages are received, the city will have outside experts evaluate the financial data, working with
Finance Director Gunderson and Mr. Dave Anderson. They would then meet with the CDA and
advise the CDA on the worthiness of the financial proposal. He thought there was a clear
understanding of the physical plan for the site and the financial package that would be required to
make it happen. Finance Director Gunderson said they have provided some preliminary reviews of
financial numbers but they are not ready to be presented in formal fashion. Ald. Petfalski added if
they come back with a signed contract from the landowner, it would be enough for the CDA to give
the developers time to work out the details on what the CDA asked. He would not recommend that
the CDA give any approvals until there is a complete package.
CDA Minutes March 25, 2004 - page 3
Commissioner Glazier believed that once the developers’ negotiations were complete with the
landowner, they would be able to move forward with the concept and the plan that would be
acceptable to the CDA. His perception was the hang-up was with the landowner. If by the next
meeting, there is a signed contract that allows the developer to go ahead, he would be satisfied.
It’s time to make some deadlines and move forward.
Commissioner Lidbury said it needs to be clear that, not if they come up with a contract, but if they
don’t, these are what the consequences are, these are the actions the CDA is going to take to
move forward.
Ald. Petfalski indicated the CDA is getting frustrated with waiting.
Ald. Salentine shared that at the public hearing on the Moorland Road corridor, citizens voiced their
opinions on the Parkland Mall site and they totally blamed the city and the CDA for not moving
forward. They want to see something done. She believed it could be accomplished, but it has to
start soon.
Chairman Waltz recapped that the CDA would like him to send a letter to the developers and the
landowner very clearly stating the CDA’s expectations; and, if they can come back with a
contractual agreement between themselves at the next CDA meeting, this would allow them to go
forward and the CDA would work with them to move forward. In the absence of the agreement,
they would still be at a standstill and this is not acceptable to the CDA. Interim Planning Director
Muenkel said, based on what the developer presented in February, they want to move forward, but
if it did come to the point by the next meeting, they did not have anything, he will have staff and
attorneys at the meeting to present what may happen at that time. Commissioner Glazier would
like in addition to a signed contract, to see, if they are not able to present the package, their
timeline for the project. Chairman Waltz agreed that everything is hinging on getting the signed
contract.
PUBLIC INPUT
Meeting was opened up for public input at 7:18 p.m.
Mary Steinbauer questioned how long a landowner was allowed to have a property under the TID
and how long can a property be allowed to sit like this one? Chairman Waltz responded the
landowner owns the property and it is for them to do with the property what they will as long as it is
within the ordinances of the city. He briefly reviewed the TIF that was created for this property and
the subsequent involvement of the CDA. Finance Director Gunderson explained, as was
discussed at earlier meetings, the development of the TID and the timeline for the TIF funding.
Nancy Stenlund asked if the structure was going to be a three-story building with a fifty-foot peak?
Chairman Waltz said the architect indicated they are basing their financial analysis on a three-story
condominium structure and the peak of the roof would be approximately fifty feet.
Marie Hansen stated it was sad to see that nothing again had been accomplished. She applauded
the CDA for their efforts in trying to move forward with the project and also did not feel it was the
city’s fault. She gave credit to Art Dyer for making it last this long.
CDA Minutes March 25, 2004 - page 4
Don mentioned drawing a line in the sand and what needs to be done to get something started,
anything short of condemnation, what is the sequence of events to get them motivated? Chairman
Waltz stated it is simple to say condemnation, but complicated to execute and implement. The first
priority is to work with the present landowner and developers to insure success for them as well as
the city. He said the CDA has the ability with the approval of the Common Council to condemn a
blighted property. At this point, Commissioner Link interjected and explained the condemnation
process and what is involved with the process. She said CDA hasn’t done this so far because they
wanted to work with the property owner.
Shirley Turner asked if they do get a proposal, would it be possible that something would start yet
this year, or are we looking into next year? Chairman Waltz stated if they come forward with the
concept and the financial plan and the city is to be involved, it would take about a month for the
review of the financial plan. Then, the plans go to the Plan Commission and the Common Council
for approvals which could take another two months. At this point, Ald. Petfalski pointed out that if
the developer wanted the TIF amended, this would be additional time as the amendment has to be
approved by the CDA, the Common Council, and the Joint Board of Review. More than likely, the
development would not be happening this year.
Chris Morgan wanted to know if the property was going to lay dormant for possibly another year,
was there a way to get the landowner to clean it up? He mentioned the garbage on the property
the dilapidated light poles that might fall down and the chain link fencing that is broken. People do
walk across the property and they might get hurt. He asked if a warning for the landowner to clean
up the property could be included in the letter to be drafted by Chairman Waltz? Ald. Salentine
believed that there were city ordinances regarding such a situation. Interim Planning Director
Muenkel will follow up on this based on a complaint being filed.
MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW
None shared at this meeting.
NEXT MEETING: The next meeting is scheduled Wednesday, April 14, 7:00 p.m.
ADJOURNMENT:
There being no further business, Alderman Petfalski moved for adjournment, seconded by Ald.
Salentine. Upon a voice vote, the motion carried. Meeting adjourned at 7:42 p.m.
Stella Dunahee, CPS
Recording Secretary