Housing Committee Meeting

1 VILLAGE OF SISTER BAY HOUSING COMMITTEE (VIRTUAL) 2 MEETING NOTES 3 TUESDAY, DECEMBER 3, 2024 4 5 Due to a lack of a quorum, no meeting was held, but those present participated in a scheduled Zoom 6 call with Gorman& Company, and, the city of Sturgeon Bay Community Development Director, Marty 7 Olejniczak. 8 9 Present: Chair and Trustee Patrice Champeau, Marissa Downs, Kay Smith 10 Absent: Lori Allen, Lauren Aurelius, Razvan Ciobanu, Gustavo Gallardo 11 Staff: Administrator Julie Schmelzer 12 Others: Stephen O’Hearn, Door County Community Foundation, Louise Howson 13 14 Speaker No. 1 15 Gorman & Company, represented by Dennis Davidsaver, Ted Matkom, and Daniel Kornaus, explained 16 they are a 40 year old company focused on providing housing solutions. They spoke about a 108-unit 17 affordable housing development in Sun Prairie called Jenny Wren. They presented photos (slides) of 18 the units and the overall development. It is a three-story apartment complex with common area, 19 surface parking and detached garages. They use a market rate model but have lower rents because 20 they cost less to build and operate. 21 22 They spoke of another development with one, two and three bedroom units. It has 95 units in total. 23 To keep it affordable they again used surface parking and had no elevator to get to the upper floors. 24 That project used TIF, bank financing, and equity. 25 26 They target the missing middle at $80-120,000 incomes. Many of their tenants are law enforcement, 27 teachers and nurses. They have used WHEDA tax incentives in the past, and for the Sun Prairie project 28 they used TIF incentives from the city, coupled with bridge financing from WHEDA. They explained 29 this is not uncommon, and in Green Bay they use TIF and financing through the State Land Trust. 30 31 They also spoke about their home developments. Downs asked if they have deed restrictions to keep 32 the homes affordable. They explained they do not, but they are not opposed to it either. With WHEDA 33 financing they are required to build 80/20, so there was assured a mix of affordable housing. 34 35 They have done a single-family housing project in Telluride, Colorado. They use subordinate financing, 36 similar to WHEDA financing, and do have deed restrictions on those homes. They are replicating that 37 project in Fitchburg with homes selling for $300,000. 38 39 They try to build market rate and to build without WHEDA tax credits. They did explain they would 40 like to build in Sister Bay, and when we are ready, they’d like a copy of the Village’s RFP. 41 42 Speaker No. 2 43 Marty Olejniczak, with the city of Sturgeon Bay, spoke about their Geneva Ridge project. This was a 44 follow-up conversation the committee had earlier with the Developer of that subdivision. 45 46 Marty explained they typically build market rate apartments and use TIF financing. They had an 1  NOTES – December 3, 2024 - Village Housing Committee 1 opportunity to buy the Geneva Ridge parcel so they bought it at cost, rezoned it and did RFPs for 2 developers for detached homes. The developers that responded wanted the city to pay for the 3 infrastructure and they’d build and sell the homes for $350,000, so the city declined the offer and sat 4 on the lot. 5 6 They finally decided to move forward and build a subdivision. The city used their TIF to pay for the 7 infrastructure. Portside Builders is who they decided to work with, and had them commit to a five- 8 year agreement, approved predetermined plans, and the city approved the pricing. The city holds the 9 lots and requires deed restrictions: at time of purchase one member has to be a full-time employee 10 in the county, and, the city defers the infrastructure costs six years and then forgives it. They 11 considered a special assessment policy of 6-12 years but didn’t want to manage long-term restrictions. 12 13 The taxes on the homes eventually pay back all the infrastructure costs. The city owns the lots until 14 the home is built, and then transfers it to an approved buyer. The developer is the one who markets 15 the lots. 16 17 The city also targets teachers, law enforcement, etc. They view the project a success and are thinking 18 of doing it again. 19 20 Currently they are working on a Planned Unit Development (PUD) for density. They will likely use an 21 affordable housing fund they create by using the increment from a TID they are closing. It will be built 22 in phases. 23 24 25 Respectfully submitted, 26 Julie Schmelzer, Acting Recording Secretary 2