City Council

JOINT MEETING OF THE COMMON COUNCIL, PLANNING COMMISSION AND ECONOMIC DEVELOPMENT COMMISSION COUNCIL ROOM, CITY HALL THURSDAY, MARCH 3, 2022 6:00 P.M. Common Council-The Common Council was called to order by Mayor Murphy. On roll call: Mayor Diane Murphy, Council Members John Perrine, David Harnisch, Jose Neville and Julie Counsell present. Council Member Daniel Clough arrived late at 6:03 P.M. The Pledge of Allegiance was recited. Planning Commission-The Planning Commission was called to order by Chair Mayor Murphy. On roll call: Mayor Diane Murphy, Council Members Julie Counsell and John Perrine, Natalie Erpenbach, Allan Hoesly, Greg Glisczinski and Amber Vine present. Planning Commission-The minutes of the previous meeting were declared approved. Economic Development Commission-The Economic Development Commission was called to order by Chair Mayor Murphy. On roll call: Mayor Diane Murphy, Gary Ruzic and Jana Marden present. Council Member Daniel Clough arrived late at 6:03 P.M. Carrie Morrell, Tim M. Voigt and John Gaier absent. Economic Development Commission-The minutes of the previous meeting were declared approved. Also present: City Attorney Bonnie Wachsmuth, Director of Public Works Luke Friemoth, Chief of Police James Mankowski, Fire Chief Matt Meyer, Donald Boon, Donald Quicker, West Central Wisconsin Regional Planning Commission Senior Planner Chris Straight, Clark County Economic Development Corporation Executive Director Sheila Nyberg, Charles Glassbrenner, S.C. Swiderski, LLC representatives-Jacqui McElroy and Kortni Wolf and City Clerk-Treasurer Rex Roehl. Mayor Murphy called for appearances. Mandy Krejci stated that she is excited for the potential development, but her concern and hope is no decision would be finalized tonight-take time to think things through. Jerilyn St. Amand stated that she is excited for anything happening in Neillsville, she asked beforehand, but no materials for this meeting were available. She did not know what was going on, no idea or information available to make an informed decision. Information should be freely shared, to get the public involved. Robert Johnson stated he read the agenda stating discussion and action, this should be just a presentation only, no action taken. Jon Counsell stated that he has made comments about agendas in the past, it makes him nervous about what could happen tonight with discussion and action on financing and memorandum of understanding. Are we approving and locking something in or moving forward to analyze the proposal or asking the City Attorney to do something. Drafting an agenda is not an easy task, each committee should meet on its own to make a recommendation to the next level, being done in an orderly fashion. This is a sizeable operation, make sure to do the homework and due diligence. Mayor Murphy called or further appearances. Mayor Murphy stated that back in September 2021, there was an open house in Stanley for a housing complex. Sheila Nyberg got the contact information for S.C. Swiderski, LLC. So, on September 16, 2021, she emailed them to meet and discuss a possible development in Neillsville. Swiderski got back to her the same day stated they were interested and a meeting was set up for October 5, 2021. Mayor Murphy stated that on October 5, 2021, she, Jana Marden and Sheila Nyberg met with members of the Swiderski team to talk about the City and show them around town They took them to the Boon Subdivision. The Swiderski team stated that they could make no commitment, they would have to do a study and they would get back to us. Mayor Murphy stated that she sent a follow up email on November 23, 2021. It sat until December 30, 2021 when Swiderski sent a concept plan. Mayor Murphy stated the Council Members were informed of the project at the January 25, 2022 meeting and a three-way joint meeting was set up for tonight, March 3, 2022. Mayor Murphy stated that she, Donald Quicker, Chris Straight, Director of Public Works Friemoth and City Clerk Roehl met on February 10 and 24, 2022 to discuss financing needs and possibly an additional TIF District. Mayor Murphy asked Swiderski representatives Jacqui McElroy and Kortni Wolf to do their presentation on a residential development in the Boon Subdivision. McElroy stated the proposed project is titled-SCS Neillsville. S.C. Swiderski is a privately held company and does a lot of things in house. McElroy presented their various teams-C.O.O. & Advisory Board, Leadership Team, Development Team, SCS Homes Team and Design Team. McElroy presented the SCS Process-Acquisitions & Real Estate, Architecture & Design, Construction & Excavation, Property Management, Dedicated Maintenance, with the goal of happy customers. Wolf presented the project location at Lucille Lane and Boon Boulevard, the Boon Subdivision Plat and Conceptual Site Plan. They are proposing a public road, 52 dwelling units, 3 storage units (available to both public and tenants), 7 single family lots, a future development area, the remaining two acres are reserved for someone else. McElroy stated they would be putting this on their website, www.scswiderski.com, under the tab SCS-Neillsville. Two Fulton 16-unit buildings, two Bedford 6-unit buildings, one Huntington 8-unit building, three storage unit buildings, seven single family homes. This mix was brought about by research to best serve your community. Each apartment has a private entrance, the homes would be ranch style. Wolf presented the proposed development time line: Concept Plan Commission-March 3, 2022; Development Agreement Negotiations-Spring 2022; Offer to Purchase Negotiations-currently underway; Upon Offer to Purchase Acceptance-March 2022; SCS Begins Due Diligence Period- March 2022-September 2023; Contract Schematic and Civil Engineering-Spring 2023; Deliverables Due/Review-Summer 2023; Municipal Approvals-July/August 2023; Purchase Parcel on or Before-September 1, 2023; Construction Start-Spring 2024; Construction Finish- December 31, 2025. McElroy presented the SCS Leasing Difference-the owner is making a private investment in the community, it is in the owner’s long-term portfolio, the Leasing Department has someone on site, every applicant goes through the same comprehensive screening process and rules and regulations are enforced. McElroy presented the SCS Maintenance Difference-regularly scheduled maintenance. The rental rate includes-individual thermostats, hydronic heat, trash removal, wireless internet, water, cable, sewer, snow removal and lawn care. The renter has to pay the electric only, the heating is included. Wolf presented Accessibility Measures for Type B units and Type A units (Type A units are fully accessible including a washer and dryer). Hoesly asked that the concept plan be put up on the screen. Council Member Counsell asked about questions. Mayor Murphy replied she would like to go through the whole thing first. Quicker stated that he has worked on all four of Neillsville TIF Districts and now possibly a fifth. TID and TIF are used interchangeably. TID is the vehicle and TIF is the funding process. There is not a better case than the situation at hand. Most of the time you have an undeveloped property, the money is borrowed, you put in the improvements and hope for enough development to provide the incremental taxes to pay off the funds borrowed and interest paid. TIF increment is delayed a year or two because of the assessment process. If a TIF District No. 5 is created it would be an overlay of TIF District No. 3. A 9-million-dollar improvement would provide $240,000 in increment by 2027/2028. If a Phase 1 borrowing of $1 to $1.2 million to purchase 16 acres of land and put in a street. It would not take long to pay off. If an expanded District, outside of the 16 acres, is considered to include property along U.S. Hwy 10, the City’s share of infrastructure costs could be included. When the State DOT does the highway, it could be a tremendous opportunity. City Attorney Wachsmuth stated that she had talked with Wolf on the Memorandum of Understanding bullet points that Swiderski had sent over. It is kind of what they are looking for from the City: Create a TIF District-the City cannot guarantee a TIF District, it is ultimately up to the Joint Review Board; design and construct a road-need to talk about plans and dedication of land; rezone-currently one family residential needs to be multi-family; reimbursement for land costs-methods are pay-as-you-go, construction start, per building occupancy; Neillsville Residential Incentive Program-limit amount of available funds; tax assessment values for project. These are talking points for a Developer’s Agreement. Wolf stated the Developer’s responsibilities would be: acquire the property; design due diligence period (site evaluation, DNR Species review, soil elevations, utility review); contract a Civil team (topographic survey and mapping, ALTA survey, CSM or Plat determination, schematic site design, utility, erosion control, storm water); landscaping; municipal approvals; construction; building plans; construct and maintain private roads throughout development; construction schedule and timeline. Council Member Counsell asked no park with this development. Wolf replied correct no park. Counsell asked if they wait for someone to come in and buy the single-family homes. Wolf stated they would build spec home. Counsell asked about pets. Wolf replied they allow cats and dogs up to 50 pounds. Counsell asked what “A type” rental is. Wolf stated accessibility measure are already built in. Counsell asked about the rental rates. Wolf replied they will be market rate, which has to be determined yet, about $800 for a one bed and $1,500 for a patio type. Counsell where will the leasing office be. Wolf it would be in an apartment on site. Natalie Erpenbach asked about the 12% cap on TIF Districts. Chris Straight replied that the 12% limit is of equalized value, right now including the new TIF District No. 4 creation the City is at 8%. Erpenbach stated that the 9 million would fit into the 12% limit. Quicker replied that it would not prohibit a 5th TIF District, but could restrict a 6th TIF District. Straight stated that to create a TIF base in 2024, the district would have to be created by September 30, 2024. The current value would be just for the land value. Erpenbach asked when the current TIF District No. 3 expires. Straight replies 2026, but it could be extended for three years or a one-year extension for housing. Donald Boon stated that Boon Subdivision was built on a TIF. Quicker stated that the pulling out of 16 acres to create a TIF District would have no effect on the rest of TIF District No. 3 as the new TIF District would be an overlay and only the new growth would go to the new TIF District. Council Member Clough asked about the timeline for a memorandum of understanding. Wolf stated we have time-end of Summer 2023 Mayor Murphy called for appearances. Carter Krueger asked if the whole development was north of Lucille Lane, it is all residential, did that change, basically he is going to be looking at this development. Wolf stated the development is north of Lucille Lane. Council Member Counsell stated it will have to go to the Planning Commission for rezoning to multi-family. Carter Krueger stated the proposed lots L5, L6 and L7 are the northside of Lucille Lane. Corey Krueger asked if the water and sewer infrastructure could support the apartment project. Director of Public Works Friemoth stated it should. Donald Boon stated that it was all programmed in when his subdivision was built because of the Highway 10 being in dire shape, the subdivision could be used to bypass Highway 10. Corey Krueger stated so there is no problem with capacity. Friemoth stated right. Jerilyn St. Amand stated that she is all for development, she would like to keep building equity, have you considered side by side condos, do you have any plans for that type of development. Wolf stated not in our development. Mayor Murphy stated that she has talked with the Lisenby’s, they have full knowledge of this project and have no problem with it. Jon Counsell asked what is going to happen, what commitments are Swiderski looking for tonight, moving it to committee. City Attorney Wachsmuth stated it would be referred to committee. Jon Counsell stated that he did not ask what kind of committee, he wants to know what they want, hoping to get an answer from them. McElroy stated acknowledgement to move forward. Council Member Counsell stated a lot of people want condos or duplexes do you do that kind of work. Wolf replied “No”. Mayor Murphy asked if McElroy and Wolf were satisfied. They replied “Yes”. Common Council: Motion Counsell, second Harnisch, to adjourn. All Aye. Planning Commission: Motion Hoesly, second Vine, to adjourn. All Aye. Economic Development Commission: Motion Marden, second Ruzic, to adjourn. All Aye. ____________________________________________ Diane L. Murphy, Mayor, Planning Commission Chair and Economic Development Commission Chair _____________________________ Rex R. Roehl, City Clerk-Treasurer