New Richmond Community Development Authority

New Richmond Community Development Authority Meeting Agenda Wednesday, May 28, 2025 at 8:00 AM Council Chambers Page 1. CALL TO ORDER 2. ROLL CALL 3. ADOPTION OF AGENDA 4. APPROVAL OF MINUTES a. Minutes from February 24, 2025 2 - 19 Joint Meeting of the New Richmond Community Development Authority and City Council - 24 Feb 2025 5. NEW BUSINESS a. Confirmation of Officers - Pdf 20 b. Community Development Block Grant Updates - Pdf 21 - 23 6. CLOSED SESSION PER STATE STATUTE 19.85 (1)(E) CLOSED SESSION PER WIS. STAT. 19.85(1)(E) DELIBERATING OR NEGOTIATING THE PURCHASING OF PUBLIC PROPERTIES, THE INVESTING OF PUBLIC FUNDS, OR CONDUCTING OTHER SPECIFIED PUBLIC BUSINESS, WHENEVER COMPETITIVE OR BARGAINING REASONS REQUIRE A CLOSED SESSION. a. CDBG Mortgage - PID 261-1119-70-000: 660 Ron Drive 7. OPEN SESSION - ACTION ON OPEN SESSION AGENDA 8. COMMUNICATION AND MISCELLANEOUS 9. ADJOURNMENT  New Richmond Community Development Authority Meeting Minutes 5:00 PM - Monday, February 24, 2025 Council Chambers The New Richmond Community Development Authority of the City of New Richmond was called to order on Monday, February 24, 2025, at 5:00 PM, in the Council Chambers, with the following members present: PRESENT: Larry Moore, Jason Zahradka, Kirk Lindell, Craig Scott, Greg Gartner, Thomas Weinmeyer, Jim Zajkowski, Ron Volkert, Mike Montello, Pete Vrieze ABSENT: Krista Paulus, Craig Kittel OTHERS Noah Wiedenfeld, Rae Ann Ailts, Sean Lentz, Michelle Scanlan PRESENT: CALL TO ORDER ROLL CALL ADOPTION OF AGENDA Jason Zahradka made a motion to adopt the Agenda. Kirk Lindell seconded the motion. Carried unanimously. APPROVAL OF MINUTES Larry Moore made a motion to approve the Minutes from 04 Feb 2025. Jason Zahradka seconded the motion. Carried unanimously. NEW RICHMOND COMMUNITY DEVELOPMENT AUTHORITY WILL CONSIDER AND TAKE ACTION ON: PUBLIC HEARING ON PROPOSED LEASE WITH THE CITY OF NEW RICHMOND Rae Ann Ailts and Sean Lentz from Ehler's reviewed the Lease Report explaining the space to be leased by the City as the to-be library space and a related public parking lot located at 421 South Green Avenue from the New Richmond Community Development Authority (the "CDA"). With, the length of lease as approximately 30 years beginning the date the CDA's $10,000,000 Bonds are issued (expected to be on March 20, 2025) and ending the date the bonds are paid in full (September 1, 2055). The lease payments were explained, the City will owe the CDA rent in an amount equal to the principal and interest payments on the CDA's Bonds. Bonds payments will be semi-annual interest payments payable March 1 and September 1 of each year and annual principal payments New Richmond Community Development February 24, 2025 Authority Meeting payable September 1 of each year for a total of approximately $670,000 annually except for in 2026 where the annual lease payment is expected to be approximately $735,000. Lease Payments will include a first payment due two business days prior to March 1, 2026 and final payment will be due two business days prior to September 1, 2055. It was explained that after 30 years, the debt would be repaid and the ownership of the Library would transfer from the CDA to the City for a nominal fee. There was discussion regarding the parameters for the sale of the not to exceed amount of $10,000,000. City staff and Ehler's will work with Northland Securities as the underwriter for the issuance of bank-qualified debt. Key components of the pre-sale report, the associated timeline, and funding strategies were reviewed. ACTION ON PUBLIC HEARING ON PROPOSED LEASE WITH THE CITY OF NEW RICHMOND RESOLUTION 022502 APPROVING THE ACQUISITION OF REAL PROPERTY; APPROVING A LEASE WITH THE CITY OF NEW RICHMOND; AND AUTHORIZING THE ISSUANCE AND ESTABLISHING PARAMETERS FOR THE SALE OF NOT TO EXCEED $10,000,000 COMMUNITY DEVELOPMENT LEASE REVENUE BONDS, SERIES 2025A THEREFOR Res 022502 New Richmond CDA - signed Craig Scott made a motion to approve Resoution 022502 Approving the Acquisition of Real Property; Approving a Lease With the City of New Richmond; and Authorizing the Issuance and Establishing Parameters for the Sale of Not to Exceed $10,000,000 Community Development Lease Revenue Bonds, Series 2025A Therefor Greg Gartner seconded the motion. Carried 5-1 (opposed: Kirk Lindell). COMMON COUNCIL WILL CONSIDER AND TAKE ACTION ON: REPORT ON TERMS OF LEASE GIVEN TO COMMON COUNCIL Rae Ann Ailts offered Council an opportunity for any additional questions on the Lease Report, but there were no additional concerns regarding the Lease Report. RESOLUTION 022503 APPROVING THE LEASE OF CERTAIN PROPERTY AND APPROVING THE ISSUANCE OF NOT TO EXCEED $10,000,000 COMMUNITY DEVELOPMENT LEASE REVENUE BONDS, SERIES 2025A BY THE NEW RICHMOND COMMUNITY DEVELOPMENT AUTHORITY AND RELATED DOCUMENTS AND TRANSACTIONS Res 022503 New Richmond CDA Lease - signed Pete Vrieze made a motion to approve Resolution 022503 Approving the Lease of Certain Property and Approving the Issuance of Not to Exceed $10,000,000 Community Development Lease Revenue Bonds, Series 2025A by the New Richmond Community Development Authority and Related Documents and Transactions. Greg Gartner seconded the motion. Carried unanimously. COMMUNICATION AND MISCELLANEOUS ADJOURNMENT Pete Vrieze made a motion to adjourn at 5:32pm. Thomas Weinmeyer seconded the motion. Carried unanimously. New Richmond Community Development February 24, 2025 Authority Meeting Kirk Lindell made a motion to adjourn at 5:32pm. Larry Moore seconded the motion. Carried unanimously. New Richmond Community Development February 24, 2025 Authority Meeting  MEMO Prepared for: Community Development Authority Staff Contact: Rae Ann Ailts Meeting: New Richmond Community Development Authority - 28 May 2025 Subject: Confirmation of Officers BACKGROUND INFORMATION: At the February meeting, the CDA sought nominations and elected the following officer positions:  Chairperson - Pete Vrieze  Vice-Chairperson - Jason Zahradka As the City's new legislative cycle commenced on April 15, 2025, it is recommended that the Authority officially affirm the elections from February for the officer positions.  MEMO Prepared for: Community Development Authority Staff Contact: Rae Ann Ailts Meeting: New Richmond Community Development Authority - 28 May 2025 Subject: Community Development Block Grant Updates BACKGROUND INFORMATION: Earlier this year, the Department of Administration notified the City of its plan to discontinue all locally held Housing Revolving Loan Fund programs. Informative meetings were held in April, and City Staff and the City's program administrator attended. Based on the information at the meetings, the City is to proceed as normal and work towards pushing as many funds as possible into the community. At this time, New Richmond has only $694.38 in available funds to loan. There is no timeline yet for when new applications can no longer be accepted. DOA is waiting for HUD to sign the 2025-2029 Consolidated Plan; once that's signed, DOA will notify us of the timeline for the discontinuance of the program.Once the program is discontinued, ongoing file management will be necessary for the existing loans. This includes payoff request letters, satisfactions, processing loan payments, subordination requests, etc. When payoffs are received, those funds will then be submitted to DOA. The City will be able to retain $250.00 from each payoff to cover administrative expenses. Cedar Corporation will continue to manage the loan program on behalf of the City during this transition. ATTACHMENTS: New Richmond  STATE OF WISCONSIN DEPARTMENT OF ADMINISTRATION Tony Evers, Governor Kathy Blumenfeld, Secretary David Pawlisch, Division Administrator March 10th, 2025 The Honorable Jim Zajkowski, Mayor City of New Richmond 156 East First Street New Richmond, WI 54017 RE: Discontinuing Community Development Block Grant (CDBG) Small Communities Housing Revolving Loan Fund (RLF) Dear Mayor Zajkowski: To meet federal requirements, DEHCR outlined a plan in its 2025-2029 Consolidated Plan to discontinue all locally held Housing RLF programs. In the early 1980s the Community Development Block Grant Housing (CDBG-HSG) program began providing funding to local units of government for the purpose of offering housing repair loans to low- to moderate- income (LMI) households. Under program guidelines, the community would award CDBG funds to eligible LMI households and the funds would be repaid by these households when they no longer owned or occupied the property as their primary place of residence. The repaid funds, along with interest earned on repaid funds, would establish a locally held CDBG Housing Revolving Loan Fund (RLF). The RLF would continue to be operated by the local municipality to provide new loans to LMI residents for housing repairs. In 2012, the Division of Energy, Housing and Community Resources (DEHCR) discontinued the competitive award process and began to award CDBG housing funds via a fair share formula on a regional level. The State was divided into seven housing regions, covering every non-entitlement community in the State of Wisconsin. Under this model, all eligible LMI residents now have access to funds at the regional level, rather than relying on their community to receive an award from the State. A stipulation being if their community has an existing RLF, the applicant must first access funds through their community. If the community RLF does not have funds available, then the applicant can be served directly by the regional program. Federal regulations require that funds repaid by homeowners (program income) and held in a local RLF account for a specific purpose (housing) must be spent prior to the state utilizing new grant funds for the same purpose. There is also an expectation that the RLF community “re-loan” the RLF balance back to the community in a timely manner. This expectation has not been met. Over the last ten years the amount of cash on hand, held at the local level, has steadily increased. As of March 31, 2024 there are approximately 215 local RLFs and the ending cash balance held by communities was approximately $22 million. DEHCR held several public comment periods across the state in the summer of 2024 to discuss the Consolidated Plan elements, which included discontinuing the local RLF housing programs to create an Division of Energy, Housing and Community Resources, PO Box 7970, Madison, WI 53707-7970 Page 2 of 3 Phone: 608.266.8234 DOA.WI.GOV affordable housing program. The comments received pertaining to the development of the new program using the program income from the housing RLF’s were supportive. The 2025-2029 Consolidated Plan calls for Housing RLF funds held at the local level to be returned to DEHCR, and the funds will be used to create an affordable housing program to convert underutilized or vacant buildings into affordable housing units. DEHCR will hold two in person and one virtual meeting later this spring to provide additional information on the program. You or your designated representative will need to attend one of the following scheduled meetings to become familiarized with the process and how these changes may affect your community. April 8, 2025 1pm-2pm April 24, 2025, 1pm-2pm April 29, 2025, 10am-11am DOA Building Conference Center Virtual Session via TEAMS 101 E Wilson St. 1000 Lake View Drive Email invite will be sent Madison, WI Wausau, WI St. Croix Room Wisconsin Room Please contact Cassandra Dobson at Cassandra.dobson1@wisconsin.gov to let us know which meeting you will attend. Those electing to attend the virtual meeting will receive an email with a link for the meeting. Thank you for your partnership and your attention to this matter. Sincerely, Tamra Fabian Tamra Fabian, Director Bureau of Community Development Division of Energy, Housing and Community Resources cc: Michelle Scanlan, City Clerk, City of New Richmond Cassandra Dobson, Grant Specialist- Advanced, DEHCR Mark Staff, Deputy Division Administrator, DEHCR Cindy Frankiewicz, Fiscal Section Chief, DEHCR Page 3 of 3