Plan Commission (Meets 2nd Tuesday of each month at 5:00 p.m.)

PLAN COMMISSION Minutes December 18, 2024 Regular Meeting The meeting was called to order by Chair Paine at 4:01 pm on December 18, 2024 in Government Center Room 270. 1 ROLL CALL PRESENT: Jim Paine, Brent Fennessey (joined at 4:03), Garner Moffat, Lynn Wohlwend, Brian Finstad and Anne Porter VIRTUAL: Kelly Peterson, ABSENT: Lindsey Graskey CITY STAFF PRESENT: Director Serck, Tech Granlund, Jeff Skrenes and Camron Vollbrecht OTHERS PRESENT: Shelley Nelson, Jim Ceasar, Chris Nye, Dave Flynn, Tylor Elm, Jenny Van Sickle and Ryan Nelson 2 APPROVAL OF MINUTES 2.1 Plan Commission Minutes (November 18, 2024) MOTION to approve November 18, 2024, minutes by Commissioner Porter, seconded by Commissioner Finstad. Carried. 3 OLD BUSINESS 4 NEW BUSINESS 4.1 Small Business Grant Application Review & Recommendations a. Rick’s Auto Body b. Mattson Accounting Tech Granlund introduced the small business grant applicants for the 4th quarter. MOTION to approve alley vacation request by Commissioner Fennessey, seconded by Commissioner Moffat. Carried. 4.2 Small Business Grant Program Discussion Director Serck discussed the breakdown and rollover of the funds for the small business grant program. Discussion was had about different possibilities with the small business grant program and excess money available from rollover. Commissioner Moffat talked about letting the money sit with the upcoming bridge closure to help the affected businesses. Promotion opportunities and current promotion for the small business grant program was discussed. Possible expansion of the small business grant program to architectural services was spoke about. Jim Ceasar spoke about different possibles with the small business grant program. PLAN COMMISSION MINUTES - 12/18/24 Mtg (Meets monthly on 3RD Wednesday of each month) Page 1 of 3 4.3 Lake Superior Apartments, LLC Rezone Request and Comprehensive Plan Future Land Use Map Amendment Review and Plan Commission Recommendation Director Serck introduced Rezone request and comprehensive plan future land use map amendment to the Plan Commission. Ryan Nelson from Lake Superior Apartments LLC was present. Commissioners discussed the project. MOTION to approve the Rezone request and Comprehensive Plan Future Use Map Amendment by Commissioner Fennessey, seconded by Commissioner Finstad. Carried. 4.4 Public Hearing – (Commissioners agreed to move agenda item before 4.3) a. Resolution of the Plan Commission of the City of Superior Approving the Project Plan and Establishing Boundaries for Tax Incremental District No. 19 (Lake Superior Apartments Project) City of Superior, Wisconsin and Recommendation for the Creation Thereof Commissioner Paine opened the Public Hearing for Resolution of the Plan Commission of the City of Superior Approving the Project Plan and Establishing Boundaries for Tax Incremental District No. 19 (Lake Superior Apartments Project) City of Superior, Wisconsin and Recommendation for the Creation Thereof. Commissioner Paine asked if anyone from the public wanted to discuss or speak at the public hearing. No public comment was offered. MOTION to close Public Hearing and Adopt the Resolution by Commissioner Porter, seconded by Commissioner Fennessey. Carried. 4.5 City of Superior’s request to submit a Certified Survey Map for property located off Winter Street, Superior, WI parcel numbers 048040101603 and 048040101602. CSM 24- 03 Commissioner Paine introduced the request to submit a Certified Survey Map. MOTION to approve submitting a Certified Survey Map request by Commissioner Moffat, seconded by Commissioner Finstad. Carried. 4.6 Nye 24-03 Vacation request, review and recommendation Director Serck introduced the alley and street vacation request for the alley located between E 4th and E 5th Streets and 31st Ave E and 30th Ave E and a portion of the unimproved 30th Ave E between E 4th and E 5th Street along with the homeowners plans for the property with the alley and street vacation. The applicant attended in person. Director Serck recommends approving. MOTION to approve alley and street vacation request by Commissioner Fennessey, seconded by Commissioner Moffat. Carried. 4.7 Discussion of Vacant Building Registry PLAN COMMISSION MINUTES - 12/18/24 Mtg (Meets monthly on 3RD Wednesday of each month) Page 2 of 3 Councilor Van Sickle introduced the possibility of creating a Vacant Building Registry. Discussing what other cities are doing, the purpose of creating a Vacant Building Registry, possible implementation. Councilor Elm and Fire Chief Vollbrecht were also present to discuss the Vacant Building Registry. Plan Commission discussed the possibility of creating a Vacant Building Registry. 5 RECURRING BUSINESS 5.1 Zoning Code Update SRF created Power Point with a survey overview that was printed and shared with the Plan Commissioners. 5.2 Housing Coordinator Update Jeff Skrenes, Housing Coordinator and Planner presented on the Basics of Community Land Trusts. Plan Commission had a discussion regarding Land Trusts in Superior. 5.3 Planning & Development Director Report Director Serck updated the Plan Commission about the RACS and the Joint Review Board meetings held earlier. Director Serck is the Flood Program Administrator for the City of Superior, FEMA will be having an annual meeting will be held in January. 6 ADJOURNMENT Meeting adjourned at 6:29 pm Respectfully submitted by Amanda Granlund. PLAN COMMISSION MINUTES - 12/18/24 Mtg (Meets monthly on 3RD Wednesday of each month) Page 3 of 3 City of Superior, Wisconsin Creation of Tax Increment District (TID) No. 19 JRB and Plan Commission Meetings December 18, 2024 Tax Increment Financing How can we fund the necessary incentives and infrastructure to develop this site that meets the City’s goals and vision? Tax Increment Financing captures tax revenue from new construction to create a funding source for incentives and infrastructure for development. 2  TIF Building Blocks: Cash Flows Green: Full value reverts to general tax base Assessed Value Captured Value After Purple: Increased Assessed Termination value “captured” & Tax Increment Value of TID taxes remitted to City for project assistance Blue: Base value Baseline Property Value continues to be part of the general tax base Creation Time Termination 2025 2053 “But for” test: But for use of TIF, the proposed development would not occur. 3  TID No. 19 – Blight Elimination District • Purpose: Provide funding for infrastructure and development incentives. • Goal: The Project will result in new residential housing opportunities that are necessary in the City. • Required Finding: Not less than 50% by area of real property is a blighted area. • Preliminary Projects:  Street and Utility Infrastructure  Development Incentives • Projects will be approved individually by the City after approval of the TID. 4  TID No. 19 – Preliminary Development & Increment Assumptions City of Superior, Wisconsin Tax Increment District No. 19 Tax Increment Projection Worksheet • New development Construction Valuation Economic Total Revenue projected to begin Tax Rate 1 1 Year 2025 Value Added 5,550,000 Year 2026 Change - Increment 5,550,000 Year 2027 $14.75 Tax Increment 81,861 construction in 2025. 2 2026 - 2027 - 5,550,000 2028 $14.75 81,861 • Estimated $12.55 MM in 3 2027 - 2028 - 5,550,000 2029 $14.75 81,861 4 2028 7,000,000 2029 - 12,550,000 2030 $14.75 185,108 5 2029 - 2030 - 12,550,000 2031 $14.75 185,108 6 2030 - 2031 - 12,550,000 2032 $14.75 185,108 value to be created 7 2031 - 2032 - 12,550,000 2033 $14.75 185,108 8 9 2032 2033 - - 2033 2034 - - 12,550,000 12,550,000 2034 2035 $14.75 $14.75 185,108 185,108 throughout the life of the 10 11 2034 2035 - - 2035 2036 - - 12,550,000 12,550,000 2036 2037 $14.75 $14.75 185,108 185,108 District. 12 2036 - 2037 - 12,550,000 2038 $14.75 185,108 13 14 2037 2038 - - 2038 2039 - - 12,550,000 12,550,000 2039 2040 $14.75 $14.75 185,108 185,108 • Total tax increment 15 16 2039 2040 - - 2040 2041 - - 12,550,000 12,550,000 2041 2042 $14.75 $14.75 185,108 185,108 revenue is projected to be 17 18 2041 2042 - - 2042 2043 - - 12,550,000 12,550,000 2043 2044 $14.75 $14.75 185,108 185,108 approximately $4.688 19 20 2043 2044 - - 2044 2045 - - 12,550,000 12,550,000 2045 2046 $14.75 $14.75 185,108 185,108 million through the life of 21 22 2045 2046 - - 2046 2047 - - 12,550,000 12,550,000 2047 2048 $14.75 $14.75 185,108 185,108 the TID. 23 2047 - 2048 - 12,550,000 2049 $14.75 185,108 24 2048 - 2049 - 12,550,000 2050 $14.75 185,108 25 2049 - 2050 - 12,550,000 2051 $14.75 185,108 26 2050 - 2051 - 12,550,000 2052 $14.75 185,108 27 2051 - 2052 - 12,550,000 2053 $14.75 185,108 Totals $12,550,000 - Future Value of Increment $4,688,175 1) Tax rate shown is actual 2023/2024 rate per DOR Form PC-202 (Tax Increment Collection Worksheet). 5 Tax Increment District No. 19 – Preliminary Cash Flow City of Superior, Wisconsin Tax Increment District No. 19 Cash Flow Projection • Development Incentives will be Projected Revenues Projected Expenditures Balances 2030 G.O. 2042 G.O. Phase 1 Phase 2 Ongoing financed on a pay-as- Tax Total Promissory Promissory Development Development Liabilities Increments Revenues Note Note Incentives Incentives Planning & Administration Total Expenditures Annual Cumulative Outstanding you-go basis. Year $523,000 $900,000 $1,018,314 $1,486,764 Year 2025 2026 20,000 5,000 20,000 5,000 (20,000) (5,000) (20,000) (25,000) 2025 2026 • Streets and Utility 2027 2028 81,861 81,861 81,861 81,861 49,116 49,116 5,000 5,000 54,116 54,116 27,744 27,744 2,744 30,488 969,198 920,081 2027 2028 Infrastructure 2029 2030 81,861 185,108 81,861 185,108 49,116 49,116 61,949 5,000 5,000 54,116 116,065 27,744 69,043 58,233 127,276 870,965 2,769,664 2029 2030 projected to be 2031 185,108 185,108 69,765 49,116 61,949 5,000 185,830 (722) 126,554 2,617,600 2031 financed with General 2032 185,108 185,108 69,510 49,116 61,949 5,000 185,575 (467) 126,087 2,463,535 2032 2033 185,108 185,108 69,145 49,116 61,949 5,000 185,210 (102) 125,986 2,307,470 2033 Obligation Notes in 2034 185,108 185,108 69,670 49,116 61,949 5,000 185,735 (627) 125,359 2,148,405 2034 2035 185,108 185,108 69,030 49,116 61,949 5,000 185,095 13 125,372 1,987,340 2035 2030 and 2042. 2036 185,108 185,108 69,280 49,116 61,949 5,000 185,345 (237) 125,135 1,823,275 2036 2037 185,108 185,108 69,365 49,116 61,949 5,000 185,430 (322) 124,813 1,656,211 2037 2038 2039 185,108 185,108 185,108 185,108 69,285 69,040 49,116 49,116 61,949 61,949 5,000 5,000 185,350 185,105 (242) 3 124,572 124,575 1,486,146 1,313,081 2038 2039 • Expenditures are 2040 2041 185,108 185,108 185,108 185,108 69,630 49,116 49,116 61,949 61,949 5,000 5,000 185,695 116,065 (587) 69,043 123,988 193,031 1,136,016 1,024,951 2040 2041 subject to approval by 2042 2043 185,108 185,108 185,108 185,108 119,500 49,116 49,116 61,949 61,949 5,000 5,000 116,065 235,565 69,043 (50,457) 262,074 211,618 1,813,887 1,632,822 2042 2043 City Council at the 2044 2045 185,108 185,108 185,108 185,108 119,650 119,580 49,116 49,116 61,949 61,949 5,000 5,000 235,715 235,645 (50,607) (50,537) 161,011 110,474 1,447,757 1,258,692 2044 2045 time they are executed. 2046 185,108 185,108 119,290 49,116 61,949 5,000 235,355 (50,247) 60,227 1,065,627 2046 2047 185,108 185,108 119,780 35,988 61,949 5,000 222,716 (37,608) 22,619 880,691 2047 2048 185,108 185,108 118,995 61,949 5,000 185,944 (835) 21,784 727,743 2048 2049 185,108 185,108 118,990 61,949 5,000 185,939 (830) 20,953 569,794 2049 2050 185,108 185,108 119,710 61,949 5,000 186,659 (1,550) 19,403 405,846 2050 2051 185,108 185,108 119,100 61,949 5,000 186,049 (940) 18,462 236,897 2051 2052 185,108 185,108 119,215 61,949 5,000 186,164 (1,055) 17,407 61,949 2052 2053 185,108 185,108 61,949 5,000 66,949 118,160 135,566 (0) 2053 Totals $4,688,175 $4,688,175 $693,720 $1,193,810 $1,018,314 $1,486,764 $160,000 $4,552,608 Totals 6 Preliminary Timeline • December 18, 2024: • Initial Joint Review Board meeting • Plan Commission public hearing • Approval of resolution recommending TID 19 creation to City Council • January 21, 2025: • City Council meeting with TID 19 creation resolution on agenda • To Be Determined • JRB reconvenes to vote on creation of TID 19 7 Q A & 8 Important Disclosures Ehlers is the joint marketing name of the following affiliated businesses (collectively, the “Affiliates”): Ehlers & Associates, Inc. (“EA”), a municipal advisor registered with the Municipal Securities Rulemaking Board (“MSRB”) and the Securities and Exchange Commission (“SEC”); Ehlers Investment Partners, LLC (“EIP”), an SEC registered investment adviser; and Bond Trust Services Corporation (“BTS”), a holder of a limited banking charter issued by the State of Minnesota. Where an activity requires registration as a municipal advisor pursuant to Section 15B of the Exchange Act of 1934 (Financial Management Planning and Debt Issuance & Management), such activity is or will be performed by EA; where an activity requires registration as an investment adviser pursuant to the Investment Advisers Act of 1940 (Investments and Treasury Management), such activity is or will be performed by EIP; and where an activity requires licensing as a bank pursuant to applicable state law (paying agent services shown under Debt Issuance & Management), such activity is or will be performed by BTS. Activities not requiring registration may be performed by any Affiliate. This communication does not constitute an offer or solicitation for the purchase or sale of any investment (including without limitation, any municipal financial product, municipal security, or other security) or agreement with respect to any investment strategy or program. This communication is offered without charge to clients, friends, and prospective clients of the Affiliates as a source of general information about the services Ehlers provides. This communication is neither advice nor a recommendation by any Affiliate to any person with respect to any municipal financial product, municipal security, or other security, as such terms are defined pursuant to Section 15B of the Exchange Act of 1934 and rules of the MSRB. This communication does not constitute investment advice by any Affiliate that purports to meet the objectives or needs of any person pursuant to the Investment Advisers Act of 1940 or applicable state law. 9  1/2/2025 Online Survey Online Survey: Age 0% 3% 1% 7% 13% 234 Less than 18 years old 18 to 29 years old 30 to 44 years old 45 to 64 years old Responses 31% 65 to 79 years old Greater than 79 years old 45% Prefer not to answer Public Engagement Public Engagement Update Update 1 2 Online Survey: Tenure in Superior Online Survey: Household Income 3% 1% 8% 30.00% Less than 3 years 24.62% 25.00% 3 to 9 years 20.00% 18.09% 16.58% 10 to 19 years 15.00% 30% 40% 10.05% 20 or more years 10.00% 8.54% 7.54% 6.03% 5.03% I do not live in Superior, 5.00% 3.52% but work here 0.00% Prefer not to answer Less than $20,000 to $35,000 to $50,000 to $75,000 to $100,000 $150,000 $200,000 Prefer not $20,000 $34,999 $49,999 $74,999 $99,999 to to or more to answer Public Engagement Public Engagement 18% Update $149,999 $199,999 Update 3 4 Online Survey: Race/Ethnicity 0% 0% 6% American Indian or Alaska Native 2% 13% 0% 3% Asian Black or African American 6% Native Hawaiian or Other Pacific Islander White Hispanic Latino Other 70% Prefer not to answer Public Engagement Update 5 1  1/2/2025 Current housing market snapshot • 61 single-family or 2-4 unit properties currently for sale in Superior Basics of Community Land (does not include vacant land, commercial properties, or mobile homes) Trusts in Superior • Median list price of $200,000 1 2 Monthly payment breakdown at $200,000 Housing Affordability at $1,644 PITI with 5% down • $190,000 loan amount • HUD defines area median income at $79,900 • $1,264 principal and interest at 7% 30-year fixed • Affordability generally viewed as 80% of AMI, $63,920 • $165 taxes • Affordable housing payments generally viewed as 30% of gross • $100 home owners insurance monthly income • $115 private mortgage insurance • Annual income of $65,760 needed to make the median list price affordable at a monthly payment of $1,644 • $1,644 total PITI 3 4 How Land Trust Assistance Impacts Affordability Housing affordability at $1,388 PITI • $50,000 down payment assistance (or minimum 20% to avoid PMI) • HUD defines area median income at $79,900 • Borrower may also only need money for closing costs and pre-paids not • Affordability generally viewed as 80% of AMI, $63,920 covered by seller or other assistance, instead of 5% down plus that amount • Affordable housing payments generally viewed as 30% of gross • $150,000 loan amount at 7% interest, 30-year fixed monthly income • $998 principal and interest • $55,520 annual income needed to make a payment of $1,388 • $165 taxes affordable • $100 insurance • $25 ground lease fee • $1,388 PITI 5 6 1  1/2/2025 How Community Land Trust impacts resale – How Community Land Trust impacts resale – Traditional Ownership Model Community Land Trust Ownership Model • Assuming 5% increase year to year in property value, a $200,000 • Assuming 5% increase year to year in property value, a $200,000 purchase is worth $325,750 after ten years purchase is worth $325,750 after ten years • Assuming owner paid only the minimum PITI during that period, a $150,000 loan • Assuming owner paid only the minimum PITI during that period, a would have a balance of $128,200 $190,000 loan amount would have a balance of $162,400 • From the naturally-occurring equity of $125,750 • 75%, or $94,300 stays with the property; the land trust conveys it to the next buyer as down • Gross proceeds at sale payment assistance, plus the initial $50,000 investment • 25%, or $31,450 is retained by the fee owner/initial buyer • $125,750 equity from increased value • At sale, the gross proceeds to the owner are • $27,600 principal paydown • $31,450 in equity • $10,000 initial down payment • $21,800 in principal paydown • Any additional payments towards principal, any funds used towards down payment, any • $163,350 gross proceeds, less realtor, title, and other closing fees associated proceeds related to improvements made by the owner (such as an addition to the house) with sale • $53,250 gross proceeds minus realtor, title, or other closing fees 7 8 Community Land Trust Impact on Next Purchase Harrison Townhomes, Minneapolis • Same property, purchased for $200,000 and worth $325,750 after ten years • 5% down payment, $309,450 loan amount, 7% interest for 30-year fixed • $2,060 principal and interest • $94,300 transferred equity, plus $50,000 from original assistance • $181,450 maximum 1st mortgage, same terms • $1,207 principal and interest 9 10 Harrison Townhomes Development Costs Harrison Townhomes Development Costs • $10,384,000 total development costs for 17 units • Appraised value of site at time of completion, $4,932,500 • $611,000 price per unit • Average per unit appraised value, $290,150 • $488,000 acquisition cost • Development gap of $5,450,500, per unit gap of $320,700 • Without acquisition cost, $9.9 million total • Harrison project filled gap through • MHFA (MN equivalent of WHEDA) funding • Without acquisition cost, $582,000 per unit • Minneapolis “Missing Middle” program $900,000 • Harrison project includes some development fees and green certification • CPED ARP $550,000 • CPED Contingency $680,000 (final amount not yet committed) that may not apply to a CLT in Superior • Hennepin County ARP $850,000 • Removing all costs that might not apply to Superior still has a per unit cost • Harrison neighborhood NRP $500,000 (final amount not yet committed) of over $500,000 • Over half of the development gap for this project comes from funds no • That lower estimate still assumes there are no costs unique to our site longer available or without a direct WI equivalent 11 12 2