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Commuinity Development Authority- MINUTES - 6/23/2011 CITY OF MUSKEGO Approved 7/21/11 COMMUNITY DEVELOPMENT AUTHORITY (CDA) MINUTES THURSDAY, JUNE 23, 2011 Chairman Glazier called the meeting of the Community Development Authority to order at 6:00 PM Those in attendance recited the Pledge of Allegiance. STATEMENT OF PUBLIC NOTICE The meeting was posted in accordance with the Open Meeting Law. PRESENT: Commissioners Bill Engelking, Rob Glazier, Gail Konkel, Larry Lefebvre, Ald. Snead , Ald. Soltysiak and Executive Director Muenkel ABSENT: Jason Thompson (excused) GUESTS: Lorie Oliver, Steve Meyer, John A. Spitzner, Ald. Neil Borgman APPROVAL OF THE MINUTES OF THE MAY 17, 2011 MEETING Commissioner Engelking moved to approve the minutes of May 17, 2011 meeting. Commissioner Lefebvre seconded. Upon a voice vote, the motion to approve the minutes carried. PUBLIC INPUT: Mr. John A. Spitzer questioned why it was taking so long to plant the trees in the Tess Corners area. He mentioned that the county had no objection to planting the trees. He was aware that there were 40+ trees left from the planting of the industrial park. The project should get finished so it looks nice. It was his understanding that the trees would be planted between the curb and the sidewalk. He would like an explanation why it is taking so long, better than two years. Executive Director Muenkel stated it would be discussed under the Tess Corners Redevelopment District. There are costs involved implementing the design. He could not say how long it would take for the design process and the construction service. Ald. Soltysiak assured Mr. Spitzer that the project would have to work through the process and the process is getting started. NEW BUSINESS Janesville Road Grant Request: Bay Breeze Condominiums Executive Director Muenkel refreshed the CDA members on what transpired at the last meeting. He added that they have withdrawn their previous request and submitted a new request for $5,000 for replacement of multiple trees on Janesville Road berms that were destroyed by the 2010 tornado that swept through Muskego. The attorney was contacted regarding the grant procedures indicating that a CDA member cannot benefit from the grant itself. The attorney’s opinion was “I agree with the conclusion that the Bay Breeze Condominium Association grant proposal is ineligible under the CDA’s rules if a CDA member benefits from the grant through a reduced assessment on his condominium. However, there may be a way to avoid the problem. If the CDA member can waive the reduction in his assessment that would result from the grant, so that he or she pays the same amount that would have been assessed without the grant, the member would receive no benefit from the grant. In that case, the proposal could be considered by the CDA without violating your policy.” Ms. Oliver presented her argument that they were a commercial entity. She based this on:  They have a federal tax ID number;  Letter from M & I Bank stating that they are a corporation;  Real estate law definition of commercial real estate; CDA Minutes Page 2 June 23, 2011  They are an income property;  They pay taxes as a corporation Executive Director Muenkel stated that condos are considered commercial in the pre-development stage, however, the development is now in the post-development arena and the CDA can apply their grant procedures as they see fit. CDA members had a lengthy discussion on commercial property and residential property. They wanted to be careful about setting a precedent as this is the first non- traditional grant application where condos are more residential in nature than commercial. One member noted that the improvements are not being done on the private properties but on the commercial area and this may be the distinction needed in consideration of the request. Also, CDA members considered the benefit to the community as previous loans have been for a service or retail type business and also the expenditure of taxpayer dollars. Ald. Soltysiak thought it far better to have a residential program and then review the grant. Ald. Soltysiak made a motion to defer the grant request until there is a residential program in place. Commissioner Konkel seconded. Upon a vote, the motion carried 5-1 with Commissioner Lefebvre voting against. Parkland Plaza Redevelopment Executive Director Muenkel gave some background information on TID #8 District including that there is $375,000 that can be used for incentives in the district. He has had several discussions with the owners of the Pick N Save/Retail Center and the Parkland Plaza property. The owner of the Parkland Plaza property provided renderings of their building with an updated façade. They would like to get it done this year. The project would cost them approximately $225,000 and they are looking at investing $50,000 with the remaining $175,000 being requested from the city. There is no grant procedure for this type of money. This would be subject to council approval. The CDA would be investing in the structure of the downtown and the ultimate goal to encourage new development in the area to follow the same suit. In TID 8, the CDA decided to pick out specific properties to commit to development. If the money isn’t used, it would basically go into an account until the TID is dissolved and paid off and then the money would be distributed to the different taxing authorities. Executive Director Muenkel thought the money could be applied towards helping with the Janesville Road reconstruction street scaping or infrastructure. He had mentioned to the owners that if the CDA and council approved the funds, that a monument sign be erected that the city could use to advertise events. Ald. Soltysiak would like the money used for street scaping. He asked if the owner had provided any other diagrams. Executive Director Muenkel stated some were with less columns and the façade was changed a little bit. However, it is fully redoing the front façade or give them direction on a threshold that the CDA would partner in. CDA members would like to see them contribute as much as the CDA in the project. Executive Director Muenkel will offer both Parkland Plaza owners and Pick N Save owners up to matching $50,000 for the improvements with a time limit on the offering. They could also apply for additional money through the Janesville Road Commercial Grant program. Commercial Grant Request: Steven Meyer (W145S6550 Tess Corners Drive) Executive Director Muenkel reviewed the $3,000 grant request from Mr. Meyer. This would be the first request received from the Redevelopment District #1. Mr. Meyer offered additional information, including pictures and renderings, on his grant request for updates to his business property and structure located within Redevelopment District #1. He provided documentation that the approximate cost of the improvements would be $9,587.49. He would like to move forward with the improvements and have them completed by September. Commissioner Engelking moved to approve the $3000 grant request. Commissioner Lefebvre seconded. Upon a voice vote, the motion carried unanimously. OLD BUSINESS Tess Corners Redevelopment District #1 Implementation CDA Minutes Page 3 June 23, 2011 Executive Director Muenkel brought forward that with the Janesville Road landscaping and the adoption of the new plan they were looking into the landscaping formally. He had received a design quote from Graef for $6,700. He advised the CDA to go forward and recommend approval for a street scaping design no more than $7,000. Then, it could go out for a formal low bid. The CDA does have money left over for professional services at this time and there is also funds remaining from the property sale. Once the design is done, there would be the cost of installing. Commissioner Lefebvre moved to approve funding up to $7000 for the design process for the street scaping in Tess Corners. Ald. Snead seconded. Upon a voice vote, the motion carried. Executive Director Muenkel shared that he had consulted with the city engineer regarding the reconstruction of the intersection of College Court and College Avenue to make it more accessible and safer. The city engineer estimated the project would cost $50,000-$75,000. This could possibly be included in the 2012 road budget. This is the only infrastructure request that came out of the district. Would the CDA be willing to help with the cost of this improvement? CDA members found no compelling demand to do it. They felt that it was a convenience thing for those businesses in the area. Chairman Glazier suggested it be brought to the Public Safety Committee or Public Works or if there was an opportunity to spur development in the area by reconstructing the intersection, then the CDA could offer to help with that effort. Downtown Redevelopment District#2 Implementation CDA members reviewed the RFP on the marketing plan drafted by Executive Director Muenkel. The firm that had done the economic development plan in 2003 estimated this new marketing plan would cost $30,000. He said that the CDBG money could be used to fund the plan. Once the CDA okayed the plan, he would take it to council for their input. Mrs. Konkel questioned the implementation of the plan and who would be doing the implementation. Chairman Glazier said it should be part of the plan that the company work with the city to implement it. Commissioner Engelking suggested that the $30,000 be put into implementation instead of the plan. Ald. Soltysiak said the plan will tell more about the industries that should be targeted; the industries that are expanding, growing and will fit the community. Chairman Glazier asked CDA members if they agreed with moving forward with an analysis at all? Should Executive Director Muenkel go to council and request certain funds toward it? By a show of hands, four felt the analysis should be done. The CDA directed Mr. Muenkel to go forward with the RFP and that they would interview the consultants at their August meeting and determine then if they feel a great need to move forward on the actual plan. Muskego Business Park Redevelopment District#3 Implementation Executive Director Muenkel shared that there is nothing new. The staff is still working on compiling the business contact list. Eventually, it will be put on the city’s web site for access by the community. This should be a good way of keeping track of the businesses in the community Mill Valley Redevelopment District#4 Plan Progress Executive Director Muenkel reported that the plan is still in progress. They have been able to accomplish a few things in the district without essentially approving it yet. Tom Zagar has planted the five trees behind the Muskego gateway sign. They are still waiting to see whether anything is going to happen between New Berlin and Muskego on the Mill Valley issue throughout this year. If nothing would happen, they could still move forward and approve the plan with some modifications. New Berlin may need Muskego’s sewer and water, but they have options where they may not but at a higher cost. MISCELLANEOUS BUSINESS AS AUTHORIZED BY LAW Next Meeting Date Thursday, July 21, 6:00 PM CDA Minutes Page 4 June 23, 2011 ADJOURNMENT: There being no further business, Ald. Snead moved for adjournment, Ald. Soltysiak seconded. Upon a voice vote, the motion carried unanimously. Meeting adjourned at 8:39 PM. Stella Dunahee, CPS Recording Secretary