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Commuinity Development Authority- MINUTES - 9/12/2005 CITY OF MUSKEGO Approved as corrected COMMUNITY DEVELOPMENT AUTHORITY (CDA) MINUTES Audio recording of meeting available. MONDAY, SEPTEMBER 12, 2005 Chairman Waltz called the meeting of the Community Development Authority to order at 7:02 p.m. Those in attendance recited the Pledge of Allegiance. Chairman Waltz noted that the meeting was posted in accordance with the Open Meeting Law. PRESENT: Commissioners Frank, Waltz, Rob Glazier, Suzi Link, David Lidbury, Ald. Nancy Salentine, Ald. Eric Schroeder and Executive Director Jeff Muenkel. ABSENT: Commissioner Gail Miles (excused) GUESTS: Phil Cosson of Ehlers & Associates, Mayor Damaske, Kenneth Laschen, Ald. Madden, Heather and Dave Schuster of Terra Firma, and Nicole Adrian of the Muskego Sun PUBLIC HEARING Chairman Waltz read the purpose of the public hearing. The hearing is regarding a proposed amendment to the boundaries and project plan for Tax Incremental District No. 8 in the City of Muskego, Wisconsin. Mr. Phil Cosson distributed a Memorandum and draft Boundary and Project Plan Amendment to Tax Incremental District No. 8 Within the City of Muskego, Wisconsin. He reviewed the Memorandum, which contained the following background:  The City created TID No. 8 in 2000 under the blight elimination statutes.  The intent was to assist in the redevelopment of the Parkland Mall site and the surrounding area.  To date, the City has incurred some costs associated with the Freedom Square storm sewer project; there are some outstanding obligations to the tax incremental district.  There is no pending project proposed for the Parkland Mall site. Mr. Cosson directed the Commissioners to view the map to see the area proposed to be removed (the Parkland Mall site and two residential parcels) as well as the parcels proposed to be added. Mr. Cosson presented the following reasons to amend the tax incremental district: The amendment would allow parcels in the CDA Redevelopment District No. 2 to be added. One site, on the north side of Janesville Road, is currently owned by the CDA. Three parcels to the east are adjacent and are also proposed to be added. On the south side of Janesville Road are areas where some recent land divisions took place and development is expected to occur. It is anticipated that TIF could also assist the existing strip mall (Pick ‘n Save) with any needed improvements. CDA Minutes September 12, 2005 - page 2 The amendment would also remove the Parkland Mall site. The following reason for proposing to do so was give by Mr. Cosson:  The property owner has attempted to reclassify the site as an agricultural type use, which could have significant negative impact on the cash flow of the TID. At this point, Chairman Waltz requested that Mr. Cosson’s presentation stop so the CDA could hear any comments from the public. No one came forward to be heard. With no public input, Chairman Waltz closed the public hearing portion of the meeting at 7:10 PM. He stated the meeting would continue with the next item on the agenda. APPROVAL OF MINUTES Commissioner Link moved to approve. Commissioner Glazier seconded. Chairman Waltz requested that the minutes be corrected (Page 3) to reflect that the Commissioners took a recess at 8:04 because of technical recording problems. Motion to approve the minutes as corrected carried unanimously. NEW BUSINESS 1. Approval of a Building, Site and Operation Plan Amendment for Terra Firma Landscape, Inc. located in Redevelopment District #1 (Tax Key Nos. 2165.976 and 2165.977) Mr. Muenkel stated the subject property is located in Redevelopment District #1. Terra Firma operates an existing landscape business and has acquired the adjacent corner property. The company proposes to use the area to expand the existing business to include employee parking and storage of landscape materials. Plan Department staff reviewed the proposal and believe it meets design guide characteristics. Landscaping will be graded upwards to shield the parking lot. A rock display and landscaping will shield the material bins. Double fencing will shield the property to the south. Commissioners Glazier and Lidbury stated they liked the proposed plan. Ald. Salentine agreed. Ald. Salentine asked the other Commissioners if they were willing to hold special meetings to accommodate petitioners where approval was required by the CDA and Plan Commission. There was no objection. Ald. Schroeder asked what the plan was for the parking lot. Heather Schuster responded she would like to use permeable pavers but there is a lot of engineering involved. Ald. Schroeder stated use of the pavers in the employee parking area better fits the criteria outlined in the Design Guide. Ald. Schroeder noted that only one landscape island was shown on the plan. Mr. Muenkel stated the lot was for employee use only and will be screened by landscaping throughout. Ald. Schroeder suggested something be placed between parking space 1 and parking space 23. Dave Schuster stated the doors allowing access to the traffic signals swing into the lot in front of parking space 23. Heather Schuster stated there is a landscape island near parking space 12 and there will be landscaping around the four sides of the parking lot. Regarding the proposed ornamental gate, Ald. Schroeder requested that it conform to the Design Guide. Mr. Muenkel stated that submittal of the elevation can be a required. CDA Minutes September 12, 2005 - page 3 Commissioner Glazier moved to recommend approval of the Building, Site and Operation Plan for Terra Firma Landscape, Inc. with the condition that the Plan Department will review and approve the building elevation of the gate off of Tess Corners Drive to ensure that it is compatible with the design guidelines for the area. Ald. Salentine seconded; motion carried. 2. Community Development Authority Action Regarding the Proposed Amendment of Boundaries and Project Plan for Tax Incremental District No. 8 in the City of Muskego, Wisconsin and Approval of Project Plan Amendment Mr. Cosson discussed the Joint Review Board meeting held just prior to the Community Development Authority meeting. Mr. Cosson noted that the Board determined the following:  The Board would like more documentation regarding the areas to be developed.  The Board wanted justification for the values identified on Page 10 of the draft Boundary & Project Plan Amendment to Tax Incremental District No. 8 Within the City of Muskego, Wisconsin. The Board is looking for documentation as to how the numbers were derived.  The Board was not comfortable with the proposed life of the district with the proposed removal of the Parkland Mall site. Mr. Cosson noted that the Parkland Mall site could be added back in the future, or a new TID created. Removing it eliminates the potential unknown and allows the City to refocus on other areas. Ms. Link asked what was the basis for the Joint Review Board wanting a shorter payback cycle than allowed by state statutes. What is the current average payback interval statewide? Mr. Cosson agreed that the TIF law was amended in 2004 to extend the life for blight districts from 23 to 27 years, with the potential to extend it for another four years. The representatives on the Joint Review Board want to make sure that the projects get done and the property is returned to the tax rolls as soon as possible. The County typically likes to see a 15-year payback. However, when TID No. 8 was created initially, there was a 23-year payback. The Board acknowledged that the Parkland Mall site would be difficult to redevelop. The Board believes the other areas to be redeveloped may not be as difficult and would like to see the term shortened. Mr. Cosson stated the average TID in Waukesha County is 15 years or less. Mr. Cosson could not speak to districts in Milwaukee or Madison. CDA Resolution No. 003-2005 - A Resolution Designating the Proposed Amended Boundaries and Approving a Project Plan Amendment for Tax Incremental District No. 8, City of Muskego, Wisconsin. Ald. Salentine moved to recommend approval. Commissioner Glazier seconded. Mr. Cosson noted that the substance of the plan, such as the boundaries, would not change. However, there will be changes; more information will be added. Ald. Schroeder asked how many times a TID could be amended. Mr. Cosson responded four. Ald. Schroeder asked why not add the proposed areas but leave the Parkland Mall site in until an assessment reclassification occurs. Mr. Cosson stated removing it takes away the unknown. The positive aspect of taking it out is that you could do a new TID and could restart the clock. Ald. Schroeder stated he believes the property is more desirable (to a potential buyer) if in the TID. Commissioner Glazier stated he has put much thought into changing the boundaries. There is so much unknown. He believes the liability of keeping the area in the TID should be removed so the focus can be on the rest of the district. When there is interest in developing the property in the future, it can be addressed at that time. Chairman Waltz stated the clock continues to run. The opportunity to add or subject projects subtract properties becomes a declining probability. Ald. Schroeder stated he has a concern that the CDA may be taking away an incentive for the owner to bring forth a viable plan or to Formatted CDA Minutes September 12, 2005 - page 4 successfully sell the property. Commissioner Glazier stated part of the responsibility of the CDA is to encourage development. However, there has been no movement on that property for several years. We need to move forward and still have the flexibility to include it down the road. We need to create a healthy district that has the foundation to promote development. Commissioner Link stated if we can spur redevelopment around the Parkland Mall site, that property would become more valuable just as it sits. That should enhance the owner’s ability to sell or develop it. The property owner is not harmed. Ald. Salentine agreed. Commissioner Lidbury stated we were looking at Parkland Mall to be the anchor that would help develop the rest of the area. Now, it’s just the reverse. Development of the other areas may be the anchor to spur the development of the Parkland Mall. Commissioner Glazier agreed. Chairman Waltz stated he does not view removal as a negative to the developer; it removes the risk to the City. Ald. Salentine called for the question. Reso. #003-2005 adopted 7-0 6-0. MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW: The next meeting date will be determined in the future. ADJOURNMENT: There being no further business, Commissioner Link moved to adjourn at 8:12 PM. Commissioner Lidbury seconded; motion carried. Respectfully submitted, Jill Blenski Recording Secretary