Loading...
Commuinity Development Authority - MINUTES - 2/18/2008 CITY OF MUSKEGO Approved, as amended, 3/18/08 COMMUNITY DEVELOPMENT AUTHORITY (CDA) Audio recording of meeting MINUTES is also available. Monday, February 18, 2008 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. Werner, Ald. Pavelko (9:20 p.m.) and Executive Director Jeff Muenkel GUESTS: Earl Meinen, Dan Konkel, Scott Gillete, Tim Hogan, Allan Weisensel, John Meland, Mayor Johnson, Ald. Borgman, Ald. Schaefer APPROVAL OF MINUTES October 22, 2007 Commissioner Glazier moved to approve the minutes for the October 22, 2007 meeting. Ald. Werner seconded. Upon a voice vote, the motion carried. December 4, 2007 Commissioner Glazier moved to approve, as amended, the minutes of the December 4, 2007 meeting. Ald. Werner seconded. Corrections: Under Roll Call, Ald. Melcher should be noted as an excused absence. On page 1, New Business, change Mr. Chiaverotti to Ms. Chiaverotti. On page 2, remove to from towith in second paragraph from bottom. Upon a voice vote, the motion carried. NEW BUSINESS Alpha Plastics Solutions, Inc. Revolving Loan Fund (RLF) Request Executive Director Jeff Muenkel reviewed the $200,000 loan request from Alpha Plastics Solutions, Inc. Mr. John Meland of the Southeastern Wisconsin Regional Planning Commission provided a summary and staff analysis of the loan request. He described in detail what the project was about from a financing viewpoint. He was recommending that any approval be based on the following contingencies:  That a $200,000 RLF loan is provided to Alpha Plastics Solutions, Inc.  That the RLF loan is matched with a loan of at least $200,000 from a local financial institution and $50,000 in owners’ equity.  That the RLF loan is provided with a term and amortization that matches the bank financing, a 12-month deferral on principal payments and an interest rate of 3.0 percent. Interest-only payments would be made on a monthly basis during the deferral period.  That the term of the RLF loan does not exceed the term of the company’s lease with Apollo Drive, LLC.  That the RLF loan is secured with the following collateral: (1) a junior lien position on equipment, accounts receivable and inventory; (2) the personal guaranties of Tim Hogan, Tammy Risseeuw, Earl Meinen, Allan Weisensel and Scott Gillete; and (3) an irrevocable letter of credit from a local financial institution in the amount of $100,000 that is issued in favor of the City of Muskego.  That the company creates 10 new full-time equivalent jobs that are recruited through the Waukesha County Workforce Development Center. CDA Minutes, February 18, 2008 - page 2  That the borrower provides to the city, or its designee, on an annual basis, semi-annual financial statements and signed copies of the borrower’s Federal income tax return. Mr. Allan Weisensel gave a brief history on the company’s background. Copies of financial statements were provided for the year ending 2007. Mr. Meland added that they were projecting 1.4 million in sales for 2008. With that level of sales, they would have adequate cash flow to cover the loan. Executive Muenkel shared that if the CDA recommended approval of the loan which would be one of the largest they have ever done, they would still have about $200,000 left in the RLF. The CDA is doing about one loan a year as people are taking advantage of this fund. Commissioners reviewed the sales projection and the financial statements. Commissioners queried them on their company’s product, marketing area, clientele, potential for hazardous material and tour. Commissioner Link voiced her concern about their long-term debt, the outstanding line of credit, about the amount of the loan and the value of the security of the components which would include personal guarantees. The CDA needs to make sure that there is adequate security. If the loan defaults, they have a massive problem. Other avenues were discussed that included personal equity and net worth for adequate security between the value of the equipment that is being purchased and subordinate liens that would be much easier to execute to discharge the debt. Commissioner Glazier moved to forward approval recommendation on this loan to the Common Council given the understanding that the CDA reached on the loan with the original contingencies as they stand. Ald. Werner seconded. Upon a voice vote, the motion carried with Commissioner Link abstaining due to the inadequate documentation. Redevelopment District #2 Expansion Executive Director Muenkel mentioned that the CDA may want to expand this district as other things start taking place in the area. The most recent thing being a new downtown concept plan and the impact of the Janesville Road reconstruction. (At 8:22 p.m. Chairman Waltz having to leave for a brief time, turned the meeting over to Vice-chairman Link.) Vice-chairman Link reviewed the boundaries that are in the Redevelopment District #2. Given what the Commissioners knew about the redesigning of Janesville Road and a new downtown plan coming up, they may want to change the boundaries and the concepts. (At 8:25 p.m., Chairman Waltz returned and chaired the meeting.) Chairman Waltz referred the Commissioners to page 40 of the document showing the phases of the project and the properties encompassed along Janesville Road. He asked what the CDA’s involvement would be in the Phase II section. Executive Director MuenkeI stated most of it was the Forest Glen subdivision and developed some time ago and the rest of it will preliminary have some condos, possibly senior condos and some commercial. Chairman Waltz asked is there any need/opportunity for the CDA’s attention to that area, anything that they could or should be doing. Executive Director Muenkel said at this time, the landowners are waiting on the market. It is zoned for condos and higher density multi-family. Chairman Waltz highlighted that the east and west portion of the downtown are in Phase III; the whole area is an area that is nebulous at the moment because many of these properties are going to be affected by the Janesville Road reconstruction. In the short term, this may be an area that could be well served by the CDA. He felt that Phase I and Phase IV are basically hung up for ten years. The CDA may gain some thoughts and ideas from the new study that is being done for the area. Commissioner Link Ald. Werner stated that if they are considering altering the boundaries, they should take a look at including the former post office property which is commercial property and the funeral home where they can assist with redevelopment. Commissioner Link said that many of the properties on the west side will have to be re-purposed as they are affected by the Janesville Road reconstruction and this will take money; and, also, some properties on the east side such as the Freedom Acres tennis courts. Executive Muenkel clarified that he believed the former post office is already included in the plan. Chairman Waltz asked if there are any other properties that they should consider including in the redevelopment district. Ald. Werner wanted Pioneer Drive to be included so the properties owners could reap some of the benefits that the CDA could extend to them. Chairman Waltz also wanted to focus on Janesville Road whereby the reconstruction would extend all the way to Racine Avenue. Some of the properties along this roadway would get significantly impacted by the reconstruction; therefore, should the CDA be looking at inclusion of any additional portion of Janesville Road as part of the redevelopment district. Commissioner Link refreshed the Commissioners that they had talked about creating CDA Minutes, February 18, 2008 - page 3 multiple districts including Pioneer Drive, Janesville Road west of Racine Avenue, Racine Avenue south of Janesville Road and Racine Avenue north of Janesville Road. At the moment, Chairman Waltz suggested they have Redevelopment District #2 which basically covers essentially Bay Lane Road to Pioneer Drive, but the road reconstruction is going all the way to Racine Avenue. For the purposes of being ready to assist or react to whatever comes along, should the CDA amend the district to coincide with the reconstruction of Janesville Road. This would exclude Racine Avenue, Pioneer Drive, and west of Racine Avenue which could all be redevelopment districts but they are not all the same as those tied to the reconstruction. Commissioner Glazier was in favor of extending it all the way to Racine Avenue but not yet seeing the design for the Janesville Road reconstruction, he could not comment on how far north or south of Janesville Road for the exact boundaries. Commissioner Link moved that the CDA adjust the eastern and western boundaries of Redevelopment District #2 to match the area encompassed by and the properties that abut the Janesville Road reconstruction project between Moorland Road and Racine Avenue. Commissioner Lidbury seconded. Commissioner Miles understood that the Janesville Road reconstruction was a two-phase project. As it expands, is there any disadvantages, is the CDA better off going with the Janesville Road project in phases. Members did not think so as it was not a TIF. Chairman Waltz suggested that the city staff take a look at it and return to the CDA with recommendations of properties/parcels to be included. Executive Director Muenkel commented they can start looking at it but he did not recommend amending the boundaries within the next month. He suggested waiting for the amendment until the ramnifications of the Janesville Road project are known and the new downtown master plan. He foresaw a mass amendment to the plan and would not separate Pioneer Drive out of the district. Commissioner Link amended her motion to include Pioneer Drive in the district. Commissioner Lidbury seconded. Upon a voice vote, the amended motion carried unanimously. Industrial Park Redevelopment Districts Executive Director Muenkel asked if the CDA wanted to go ahead with the districts. They would have the same type of concepts to implement. If the CDA wanted to move forward, then they should think about what they want to put into the districts. He recommend they take time to drive through the areas to get some idea of what they want to do with the industrial parks. Chairman Waltz shared that one of the concerns of the residents was the storm water retention and each property being responsible for it. Executive Director Muenkel stated that there is an economic profile being done to see the benefits if the redevelopment should actually occur in the industrial park itself. The CDA may benefit from the Ruekert & Mielke report as to what the benefits are for each parcel. Chairman Waltz questioned if the CDA wanted city staff to do preliminary investigation as to what may be set up as redevelopment districts for the industrial parks. Commissioner Link would like the city staff to work on it but also to keep their eyes open for another site. If the CDA can’t successfully redesign the existing industrial parks, then they will need someplace to put business if they are going to attract business. Executive Director Muenkel suggested brainstorming to see what they can do with the industrial parks and is it feasible to go forward with the redevelopment districts or should the focus be on something else. Commissioner Link moved to direct staff to come back to the CDA with recommendations on the industrial park redevelopment districts. Commissioner Glazier seconded. Commissioner Miles was concerned that they would be overextending themselves and thus asked when they could expect to begin work on Redevelopment District #2. When will they begin talks with the businesses. What is the timeline for Janesville Road. Executive Director Muenkel stated the preliminary design by the county won’t be done until possibly mid-summer. He did feel there was ample time to look at the industrial parks. Commissioner Link would like to see the CDA do something constructive. The things should not be so intensive that they would be spending hours on multiple projects each month. She did think the CDA should be able to do more than one thing at a time. Commissioner Glazier agreed but qualified that it would depend on staff resources. They should have a purpose in mind as they start the development districts. Commissioner Lidbury stated the infrastructure is already in the industrial parks so they should be able to see an impact right away. Upon a voice vote, the motion carried unanimously. Financial Aid Processes Executive Director Muenkel provided the CDA members with a list of other types of financial aids that they could engage to help stimulate the commercial base in the redevelopment districts. He reviewed the following with the members:  Tax Increment Financing CDA Minutes, February 18, 2008 - page 4  Revolving Loan Fund  Economic Development Grants/Loans  Mortgage Lease Revenue Bonds  Industrial Revenue Bonds These financial aids are available to the community. As the CDA moves forward with projects, they may need to look at these aids for financing the projects. PUBLIC INPUT — There was no public input. MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW Update on Janesville Road Reconstruction Executive Director Muenkel reported that the streetscape sub-committee is having meetings now and then there is the initial design committee which will be in their third meeting next week. On March 11, there will be an informative meeting held by the county at the Muskego High School from 4:00 p.m.-7:00 p.m. There will be other meetings in the future on how the design plan impacts the people. Update on Janesville Road Property (Located across from Library) Executive Director Muenkel shared there was someone interested and wanting to put a credit union on the site; however, the owners wanted to go in a different direction. Mr. Dilworth is back with interest again as he still owns the Assist-to-Sell building. He is actively pursuing the neighboring parcels. The CDA property was never listed with a realtor. Did the CDA members want to list it? Commissioner Glazier would like to get the exposure, have a broker take care of it. Commissioner Link suggested before going that route to do some more advertising besides the small sign. Commissioner Miles said they would have to consider the loss of the commission to the broker. Commissioner Lidbury commented it was the Council’s intent for the CDA to have the parcel developed and control of the development and how much control would they lose if they went with a broker. Executive Director Muenkel said the property would have the same conditions as the RFP that was set up with it. They would still need to come before the CDA for approval of an offer. Ald. Werner was not keen on putting it out on the market. He would rather have the CDA do all that they can before they pay a broker. Executive Director Muenkel added he could get it out to a new list of developers. Ald. Pavelko commented that other cities have bigger signs about properties. Also, couldn’t it be listed with the Multiple Listing Service without getting a realtor involved. Commissioners said due to a law change, this could be done for a fee. Commissioner Miles said the sign should be oriented 90 degrees and it may get more notice. Commissioners would like staff to bring back some options and any fees involved. Next Meeting Commissioners would like to meet more often, monthly. Executive Director Muenkel stated that the Plan strd Commission is only meeting 1 Tuesday of the month so the 3 Tuesday of the month would be open for rd meetings. Chairman Waltz stated they would be meeting on the 3 Tuesday of the month at 6:30 p.m. Commissioner Link stated she had asked for a meeting where they could discuss and clarify the jurisdictional and hand-off issues and areas of responsibility of the Task Force versus the CDA. It appears there seems to be some confusion as to who are the deciders of what should be going on and the messages that are coming out in the media and the meetings are quite different from what they were told when they had the meeting last year when the Task Force was re-created. She felt a need for some clarification. Chairman Waltz did not place this item on the agenda for (1) whether or not the answer was satisfactory to everyone, it was discussed a couple of times and (2) the CDA’s authority comes under State Statute 66. The Common Council of the City of Muskego is the overseeing elective body that controls in the end anything that the CDA does. Also, the Mayor’s Task Force reports back with no authority to the Common Council and the Committee of the Whole. If there is any clarification required, then he suggested the ultimate authority that being the Common Council in this particular case be the ones to resolve the issue. He did not see it as a CDA responsibility and therefore was not placed on the agenda. CDA Minutes, February 18, 2008 - page 5 Commissioner Link would like a legal opinion as the Mayor’s Task Force was not created by the Common Council. It was created by the Mayor. Chairman Waltz reiterated his thoughts on the issue. Commissioner Link advised of inaccuracies on agenda and meeting minutes on the city’s web site. Chairman Waltz requested that she take the items to the Common Council as he did not feel it was a CDA issue. ADJOURNMENT: There being no further business, Commissioner Glazier moved for adjournment, Commissioner Link seconded . Upon a voice vote, the motion carried unanimously. Meeting adjourned at 9:48 p.m. Stella Dunahee, CPS Recording Secretary