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Commuinity Development Authority- MINUTES - 2/28/2005 CITY OF MUSKEGO Approved 3/7/05 COMMUNITY DEVELOPMENT AUTHORITY (CDA) Audio recording of meeting MINUTES is also available. Monday, February 28, 2005 Chairman Frank Waltz called the meeting of the Community Development Authority to order at 7:00 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. Nancy Salentine, and Ald. Schroeder. Also present Mayor Slocomb, CDA Attorney Jim Baxter and Interim Plan Director Jeff Muenkel. GUESTS: Muskego Sun Reporter, Attorney Frederick, Keith Hammitt, Glenn Sheridan Notice of Closed Session was read by Secretary Miles NOTICE OF CLOSED SESSION Please take notice that following Public Input, the Community Development Authority will convene, upon passage of the proper motion, into closed session pursuant to: 19.85(1)(g) Wis. Stats. conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved; more specifically legal counsel regarding the former Parkland Mall property. Action may be taken in closed session. The Community Development Authority will then reconvene into open session to continue with agenda items. APPROVAL OF MINUTES January 27, 2005 Commissioner Glazier moved to accept the minutes for the January 27, 2005 meeting of the CDA. Ald. Salentine seconded. Upon a voice vote, the motion carried unanimously. PUBLIC INPUT—None CLOSED SESSION At 7:07 p.m., Ald. Salentine moved to go into closed session pursuant to 19.85(1)(g) Wis. conferring with legal counsel for the governmental body who is rendering oral or written advice concerning strategy to be adopted by the body with respect to litigation in which it is or is likely to become involved; more specifically legal counsel regarding the former CDA Minutes February 28, 2005 - page 2 Parkland Mall property. Commissioner Link seconded. Upon a voice vote, the motion carried unanimously. At 9:07 p.m., the meeting reconvened into Open Session for continuation of agenda items. OLD BUSINESS By-laws and Possible Motion for Amendment Interim Plan Director Muenkel commented that the amendment to the by-laws was approved by the Common Council on February 8, 2005. Review and Update of RLF Loan Procedures/Promotional Efforts Interim Plan Director Muenkel advised the commissioners that the promotional brochure was now complete and they were provided with a copy. Within the next week, he plans to send out the brochure to city businesses that may benefit from the RLF program. He also met with John Meland of the Southeast Wisconsin Regional Planning Commission (SEWRPC) and reviewed the current procedures. Mr. Meland had some suggestions on how to improve the City of Muskego’s procedures. He provided information from Ozaukee County and Washington County’s programs. First of all, the loan fees for these two counties were different that the City of Muskego’s. City of Muskego has a loan fee of 1% of the RLF loan amount with a minimum of $50 and an $800 maximum; these other communities are at .5% with a minimum of $50 and a maximum of $500. Also, loan origination fees; the City of Muskego requires $250 or 1% of the RLF loan whichever is greater; these other communities require $150 or .5% whichever is greater. This would be significant if you were only requesting a $20,000 loan. The other big change was the interest rate; the City of Muskego’s ranges from 4% to the prime rate plus 2.00 basis points. The other communities indicate it should range from 50% of the prime rate as published in the Wall Street Journal or 4%, whichever is less. The last one was the $20,000 minimum, $100,000 maximum and the maximum can be negotiated on a case-by-case basis. Mr. Meland recommended that the amount can be negotiated for less than the $20,000 on a case-by-case basis. Then, in regard to the attorney costs, the City of Muskego makes the applicant pay the full cost whereas the other communities request they pay 50% of the cost. Chairman Waltz inquired if the recommended modified changes would require action by the CDA? Interim Director Muenkel stated it would and then it would go to Common Council and then the Department of Commerce. He will formulate the changes into the document for the CDA to act on at a later meeting. Chairman Waltz recommended making the changes retroactive should they receive applications during the interim approval process. Commissioner Link suggested that the RLF information flyers be also sent to the commercial brokers. NEW BUSINESS Review of Draft RFP for City-owned Janesville Road Property CDA members reviewed the RFP draft for the Janesville Road property. Interim Plan Director Muenkel updated the members on the owned parcels in the area. He stated the back portion of the Mobil parcel had no room for acquisition. The wetlands encroach a large portion of the undeveloped area making it almost useless. He was recommending promoting a cross-access between Mobil and any new development coming before the CDA. CDA Minutes February 28, 2005 - page 3 He had contacted the other three owners in the area regarding the CDA’s proposal for the area and would they be interested in selling their property. All three indicated they would be open to negotiate the selling of their property, but they did have some contingencies. Assist-2-Sell expressed that they would like to be incorporated into any new development that does occur on the site and they would like that incorporation to be in the form of a commercial condo unit. House of Toys would need to be relocated and they did not want to incur any lost business. They would only need a leased space of approximately 2,000 square feet. The owner of the residential property has a lease until September 2005. Further, he then contacted the financial consultant and since it is a voluntary option, they wouldn’t need to pursue Council action, just motions to direct staff to negotiate with the owners. The CDA would have financial costs on acquisition, then present it before the Common Council. Chairman Waltz mentioned there seemed to be two options: one for the CDA to negotiate with the property owners and the other to let the developer do the direct negotiation and purchase with the landowner. Interim Plan Director Muenkel said they could only do an RFP on the parcel they own. If the properties were under the control of the CDA, then they could design criteria and try to form more of a downtown. A ramification would be trying to get the funds to acquire the properties. Ald. Schroeder stated the CDA needed to pursue the acquisition of the other properties as then the frontage would make the Janesville property have more appeal. With three owners willing to negotiate, the CDA needs to go in that direction as it would be more beneficial to the city and the CDA. Chairman Waltz summarized that they would have a greater opportunity for a better development. Commissioner Glazier concurred that the added properties would be a benefit. Commissioner Link suggested exploring buying the options for the properties, which could then be transferred to the developer. Interim Plan Director Muenkel will check into this with the financial consultant. Ald. Schroeder moved to direct staff to start the negotiation process with the property owners for acquisition of their properties by the Community Development Authority. Commissioner Glazier seconded. Commissioner Link asked about the current assessment/fair market for the properties? Interim Plan Director Muenkel responded Assist-2-Sell is at $141,800/$191,600 (.41 acres), House of Toys is at $250,300/$338,200 (1.24 acres), and residence is at $157,300/$112,600 (.92 acres). Chairman Waltz questioned with the road widening, would acreage be lost? Interim Plan Director Muenkel did not know if the assessor had factored that in, but it looks like the roadway is included in these acreage figures. About .15 acres would be lost with the roadway expansion. Ald. Schroeder asked with the current zoning and what is perceived to be the right-of-way for the new roadway, are any of the three structures in jeopardy of being acquired and not destroyed by the county? Interim Plan Director Muenkel replied no, they just have to dedicate the right-of-way. In regard to the RFP, he said that once they find out about the properties, the CDA members could go over the document more thoroughly and detail it at that time. In the meantime, they should review the document and get back to him on their concerns. Upon a voice vote, the motion carried unanimously. Recommendation to Plan Commission for BSO Amendment for Bushy’s in RD#1 Chairman Waltz recused himself from the discussion due to a conflict and asked the Vice-chairman Link to take over the meeting. Interim Plan Director Muenkel summed up that the by-laws now allow the CDA to review and to make recommendations on any new development in a redevelopment district. He added that the BSO (Building, Site, Operation) for Bushy’s was approved by the Plan Commission in 2004. When Bushy’s came for occupancy permits for Phase l, they did an occupancy review and found some elements missing, such as dormer window and box windows. Plan Commission agreed that these missing elements did still meet the intent of the design guide and they approved the amendment to CDA Minutes February 28, 2005 - page 4 the BSO contingent upon a positive recommendation from the CDA. Ald. Schroeder had no issue with it and felt the building exceeded his expectations. Ald. Salentine moved to make the recommendation for approval of the BSO amendment for Bushy’s to the Plan Commission as submitted. Commissioner Glazier seconded. Upon a voice vote, the motion carried with Chairman Waltz abstaining. Recommendation to Plan Commission of BSO for Premier Limo in RD#2 Vice-chairman Link relinquished the chair to Chairman Waltz for the remainder of the meeting. Interim Plan Director Muenkel explained that the Plan Commission deferred the petitioner’s request due to the parking the limousines in the front of the site. The petitioner needed to find an alternative or screen it. He did not think the new plan met the criteria requested by the Plan Commission. Ald. Schroeder was concerned, that if approved, and later the petitioner would move to a 24-seat bus, does he need different approval to park that vehicle in the stall? Interim Plan Director Muenkel said the current petition is strictly for limo parking and in the submittal, the petitioner did mention a coach limo at some time but has since removed it. Ald. Schroeder continued, if this is approved, then later another commercial entity has service vehicles, such as dump trucks, and they want to park in front of or next to their building on Janesville Road, is the CDA committed at that point, is the CDA setting precedence? Interim Plan Director Muenkel stated that all petitions stand on their own before the Plan Commission, but you would be setting a standard in that area. Commissioner Link stated that if the petitioner is indicating that he has plans to use the property only for one year or one-and-a-half years, is there a mechanism whereby he could be given a short term or sunset on his right to operate in this transitional state? She continued, that this doesn’t fit what the CDA wants to see in downtown. If you have someone who is willing to do some of the work for the CDA by acquiring the three tax keys and merging them together, it might be appropriate to give him a very limited and absolute aspiring permission to do that and after which point, the vehicles have to be gone and the properties knocked down. Is there a way of doing this, something to help him short term but helping the CDA long term? Interim Plan Director Muenkel stated that in a round-about way, the Plan Commission does put a defined end to this use via Public Utilities needs, but for uses that are long term, it is rare that they would allow a temporary use to go on for a defined period of time, as it is difficult to control how a business may change. The stone building doesn’t have any utilities with it and if they want to use it for commercial use, they have to hook up to sewer and to water. In conversation with the Superintendent of Utilities, with this being proposed as a temporary use, they may waive the utilities for one year. Then, it would be reevaluated and if they didn’t change something, to get new approvals, or hookup to utilities, the use could not go on anymore. Although, Kingdom Daycare could leave and then the petitioner could use that space and the use could go on. Commissioner Link felt it would be creating a financial impediment to have the petitioner go through the screening for short term. If it would not be short term, then the CDA has to apply the design guide standards. Ald.Schroeder thought the petitioner would combine the lots to further his limousine business. He did not think the CDA could take the chance of a different development happening there. They would now want him to conform to what the CDA plan is, not a year from now. Commissioner Glazier said the petitioner concern was the safety of the vehicles parked in the back and he could park them in the back. He didn’t have an issue with the limo business, just the limos parked out front. Commissioner Lidbury also couldn’t see why he couldn’t park the limos in the back as they would be visible. He would also like to see the fencing in keeping with the design plan. Commissioner Miles voiced her concern that with the extra asphalt lots, there may be an aesthetic problem and she would like to see the limos parked in the back. Commissioner Lidbury moved CDA Minutes February 28, 2005 - page 5 to make the recommendation to the Plan Commission that the petitioner have the limos parked in the back and screen them from view. Commissioner Glazier seconded. Commissioner Miles asked if there was any discussion at the Plan Commission regarding traffic flow? Interim Plan Director Muenkel said there was a brief discussion and they would like to have more trafficking from Park Drive than Janesville Road. However, there is sufficient room for entering on to the Janesville Road access point. Commissioner Link did recognize that the limos needed more space and more maneuvering room and was there enough space on the lot? Interim Plan Director Muenkel stated the developer has to work within the guidelines and recommendations set by the Plan Commission. Upon a voice vote, the motion carried unanimously. Update on Former Parkland Mall Property Chairman Waltz said the CDA members had no comments relative to the processes involved with the Parkland Mall property at this point. Attorney Frederick, referring to the closed session notice, advised that they are not contemplating any litigation at this time. He inquired if the commissioners had any questions at this time? Chairman Waltz responded not at this time. MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW: The next meeting was scheduled for Monday, March 7, at 7:00 p.m. ADJOURNMENT: There being no further business, Commissioner Link moved for adjournment, seconded by Commissioner Glazier. Upon a voice vote, the motion carried. Meeting adjourned at 10:12 p.m. Stella Dunahee, CPS Transcribing Secretary