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Commuinity Development Authority - MINUTES - 5/19/2009 CITY OF MUSKEGO Approved 6/16/09 COMMUNITY DEVELOPMENT AUTHORITY (CDA) MINUTES TUESDAY, May 19, 2009 Chairman Frank Waltz called the meeting of the Community Development Authority to order at 6:38 p.m. Those in attendance recited the Pledge of Allegiance. The meeting was posted in accordance with the Open Meeting Law. PRESENT: Commissioners Kathy Chiaverotti (7:24 p.m.), Larry Lefebvre, Gail Miles, Frank Waltz, Ald. Harenda and Executive Director Muenkel. ABSENT: Commissioner Rob Glazier (excused), Ald. Werner (excused) GUESTS: Bob Goehner, Sixto Villegas, Keith Hammitt, Suzi Link, Mayor John Johnson, Ald. Neil Borgman READING OF PUBLIC NOTICE Statement of the public notice was read by Executive Director Jeff Muenkel. APPROVAL OF THE MINUTES OF FEBRUARY 17, 2009 Commissioner Miles moved to approve the minutes of the February 17, 2009 meeting. Chairman Waltz seconded. Upon a voice vote, the motion carried unanimously. INTRODUCTION OF NEW CDA MEMBERS AND COMMENTS BY CHAIRMAN Commissioners introduced themselves and gave a short bio on themselves. The new members appointed to the CDA are Kathy Chiaverotti, Larry Lefebvre and Ald. Harenda. NEW BUSINESS Review and Approval of Building, Site, and Operation Plan, TID allowance, and acceptance of property sale offer for Firestone to construct an 8,600 square foot automobile repair facility located in Redevelopment District #2 (Tax Key Nos. 2198.991 & 2198.992 / Janesville Road). Executive Director Jeff Muenkel presented the proposal for the CDA property located on Janesville Road. Keith Hammitt, owner of Firestone, is requesting to build a 8,600 square foot, auto repair facility on the parcel and the parcel immediately to the east, the former Assist-to-Sell structure. The developer would like to build the facility according to specifications and the design guides. They need to also purchase the Assist-to-Sell building. For them to go forward, it needs approval from the Plan Commission and the Common Council. The CDA needs to approve and to recommend to the Common Council. He went over the site plan and the 3D renderings of the proposed building as well as the zoning change to DR-1. It would go before the Plan Commission on June 2. The developer was also requesting TID incentives in the amount of $50,000 as part of the deal. The TID would be for razing the Assist-to-Sell building and infrastructure for the new building. He did say that Ehler’s ran the numbers to see how it affected the overall TID and they indicated it would allow the TID to close two years earlier in 2020. A developer’s agreement will be set up. The developer is investing $1.4 million which would result in 28:1 ratio to the TID dollars. The purchasing price being offered for the CDA parcel is $100,000. Bob Goehner of Briohn Building Corp. showed where the site was in an aerial view. He presented a rendering of the building and it would be built according to the design guide. He pointed out that the overhead doors were designed with the safety of the employees and customers in mind. The building is ten feet from the road line to the curb and off the curb by twenty-five feet. Chairman Waltz questioned if the lighting fixtures would fit within the downtown design guide. Mr. Goehner said they were trying to copy the library fixtures. Commissioner Lefebvre’s query about the ten feet from the road was clarified that it was ten feet off the right-of-way and then another twelve-fourteen feet from that line to the back. Commissioner CDA Minutes Page 2 May 19, 2009 Miles asked when the construction was planned. Mr. Hammitt stated he would like to start building in the summer or late fall and be in the building in April of 2010. The reason for the project is the road project and they have to relocate. Commissioner Miles asked if the way the storm water pond was constructed could it be used by other properties. Executive Director Muenkel stated that what they show on the plan is what they need to meet the city’s specifications; however, there is a lot of land that a pond could be made larger, a regional pond to the east/west. Commissioner Miles questioned about the assessed value of the CDA property. Executive Director Muenkel stated it was zero being city-owned property. She questioned how they could establish a price if someone wanted to buy it. At that point in time, Executive Director Muenkel said they would do an appraisal. Ald. Harenda asked about the CDA’s operating budget. Executive Muenkel stated a few thousand dollars and it’s very limited. Other CDAs are self-funded. Muskego is trying to encourage redevelopment. Chairman Waltz gave a historical account of why the CDA has this property available to them for sale. Ald. Harenda moved to accept the development as proposed and recommend the $50,000 TID allowance to Common Council and accept the offer to purchase the CDA parcel for $100,000. Commissioner Lefebvre seconded. Upon a voice vote, the motion carried. Redevelopment District #3 Plan and Industrial Park Survey Returns. For the benefit of the new members, Chairman Waltz gave an account of what had transpired so far relative to Redevelopment District #3. Executive Director Muenkel had the results of the recent survey included in the document appendix. There was no viable differences between the two surveys. One issue was if they wanted to go forward with a BID (Business Improvement District). This BID would improve and pay for some of the items that the people have requested. He went over what is needed to create a BID. Commissioner Chiaverotti stated it took 51 percent of the owners to establish a district. She continued that some did not reply to the second survey as they felt it was redundant and they had already completed a survey. Executive Director Muenkel addressed the concern of the property owners whose parcels were not included in the Redevelopment District #3. First, they aren’t recognized as commercial in the 2020 Comprehensive Plan and second, the parcels are at the entrance to a residential subdivision. However, there may be the opportunity in the future and they will need to go through the city processes to be recognized as commercial. Commissioner Miles would like the CDA to put forth implementing some of the ideas in the plan once it is approved. Resolution #001-2009 of the City of Muskego Community Development Authority Finding and Declaring that the Proposed Redevelopment Plan for the Redevelopment District No. 3 Project Area is Feasible and in Conformity with the General Plan of the City of Muskego and Approving and Adopting the Redevelopment Plan. Without continued discussion, Commissioner Lefebvre moved to approve the Redevelopment District #3 business area and forward it to the Common Council for consideration. Ald. Harenda seconded. Upon a voice vote, the motion carried. Janesville Road Grant and Loan Programs. Executive Director Muenkel reviewed the changes that were made to the program for the district. He was looking for recommendation from the CDA in establishing these grant and loan programs as they will be the recommending authority on applications. The Common Council has earmarked certain moneys for these programs and they will give final approval establishing the parameters of the individual requests. TID residual funds in the amount of about $600,000 would be a source of funding. The loan program can offset the bank balance and at the same percentage as the RLF program. The loans go up to $25,000 and the grants are up to $3,000; however, the CDA and the Common Council can change the distribution. It should be made known what their needs are and these programs are to help them meet their goals. These initial amounts were based on this type of program in other cities. The grant program is for smaller projects such as parking lots, remodeling and signage. The loan program would be for larger projects such as a full architectural change to the building, additions or updating the whole landscape. Executive Director Muenkel would like to display these programs at the August meeting for those businesses along Janesville Road. He would like action to be taken at next month’s meeting as there are some parties already expressing CDA Minutes Page 3 May 19, 2009 an interest in these programs. Commissioner Miles presented her ideas and changes to clarify the document. Ald. Harenda asked how much money was set aside for each program. Executive Director Muenkel said a pool of about $600,000 for these programs. There is no amount set aside for each one. It’s on a first-come, first-serve basis. Chairman Waltz would like some process established for awarding the grants or approving the loans. Commissioner Miles suggested having specific criteria to help the process and to maintain the balance. Commissioner Lefebvre would like an application period for people to submit their request. Suzi Link suggested that they use the same method as the WDNR in awarding the grants. Commissioners discussed some parameters that they could use in dealing with the applications. Existing RLF Procedures Executive Director Muenkel introduced the RLF procedures. The improvements suggested by Commissioner Miles and Commissioner Link were being incorporated into the document. Further, that Mr. Meland of SEWRPC (Southeastern Wisconsin Regional Planning Commission) was okay with the changes. Chairman Waltz shared some of the background information on the Federal guidelines that established this Revolving Loan Fund in the initial amount of $500,000. The CDA has made some loans to businesses and according to Executive Director Muenkel, there are no defaults to date. Currently, there is about $200,000 in the RLF. Ald. Harenda moved to forward the document to the Common Council as amended. Commissioner Chiaverotti seconded. Upon a voice vote, the motion carried. Policies and Procedure Changes With the City of Muskego administration combining the Building and Planning Departments under the Community Development Department, this necessitated making the relevant title changes in the CDA By-laws and Rules of Procedure. Other changes being recommended by the Director of Community Development under the General Powers and Duties would be: (h) Loan Fund or other city-administered and approved loan/grant programs. (i) Review of land sale documents and Building, Site, and Operation Plans on CDA- owned property. (j) Loan approvals made in the administration of the Economic Development Revolving Review of TIF Project Plans when directed by the Common Council. Specific action taken related to the following powers shall be subject to review and approval by the Community Development Authority at the request of the Plan Commission and at times, the Common Council: For the most part, the Commissioners had no problem with the proposed changes in (h), (i) and (j) as the changes clarified and also updated their position. However, they would like to review the Redevelopment District documents before making a decision on what entity has jurisdiction within the boundaries of a redevelopment district. They felt that since they were instrumental in establishing the districts, they should be involved in what is done within the boundaries of those districts. Commissioner Miles moved to defer the item to the next meeting. Ald. Harenda seconded. Upon a voice vote, the motion carried. Redevelopment District #2 Plan Amendments Executive Director Muenkel shared that staff has begun the new draft of the amended Redevelopment District #2 Plan. He expects to present the draft at the next meeting. ELECTION OF CHAIR, VICE CHAIR AND SECRETARY Chairman Ald. Harenda nominated Commissioner Chiaverotti who declined the nomination. Commissioner Miles nominated Commissioner Waltz. Commissioner Lefebvre moved to close the nominations, seconded by Commissioner Chiaverotti. Commissioner Waltz will serve as Chairman, 4-1 (Chairman Waltz abstained.) CDA Minutes Page 4 May 19, 2009 Vice Chairman Commissioner Miles nominated Commissioner Glazier for Vice Chairman. Ald. Harenda seconded. Commissioner Glazier was not in attendance. Commissioner Lefebvre moved to close nominations, seconded by Commissioner Miles. Commissioner Glazier will serve as Vice Chairman. Secretary Commissioner Chiaverotti nominated Commissioner Miles for Secretary. Commissioner Lefebvre seconded. Commissioner Lefebvre moved to close nominations, seconded by Ald. Harenda. Commissioner Miles will serve as Secretary. PUBLIC INPUT Ms. Suzi Link addressed the Commissioners on several issues. She stated that the CDA should be taken very seriously and shouldn’t be dismissed or marginalized. Is going to destroy what they have been trying to do. The CDA was created for a very specific purpose. It is a legal body with taxing authority. It is not just another committee. It has authority far in excess of the Mayor’s Task Force. There is bound to be some cross-pollination but you need to put on the correct hat when at a CDA meeting. They need to remember who they are and what they are to do. She also stressed that attendance at the CDA meetings is very important. She stated that the CDA needs to be consistent in the way it treats loan applicants, developers, etc. She was glad they passed the Redevelopment District #3 and now they will be in a position to do something. Regarding the loan and grant programs, she felt it was important to limit the amounts and they should try and stick to them. They need to be careful as $600,000 is not going very far and with the current economic status, those dollars may be needed in balancing the budget for a year. It could happen. The CDA needs to focus on what the community at large wants, not just on certain sectors. MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW The next meeting date was set for Tuesday, June 16, at 6:30 p.m. ADJOURNMENT: There being no further business, Commissioner Lefebvre moved for adjournment, Commissioner Miles seconded. Upon a voice vote, the motion carried unanimously. Meeting adjourned at 7:26 p.m. Stella Dunahee, CPS Recording Secretary