Community Development Authority (CDA)

AGENDA CITY OF WAUPUN COMMUNITY DEVELOPMENT AUTHORITY MEETING Waupun City Hall – 201 E. Main Street, Waupun WI Tuesday, September 19, 2023 at 7:45 AM The Waupun Community Development Authority will meet In-person, virtual, and teleconference. Instructions to join the meeting are provided below: Virtual: https://us02web.zoom.us/j/84949639125?pwd=YWt0R015Z09wN3E5Q1o0WDFpclhrZz09 Meeting ID: 849 4963 9125 Passcode: 757382 Phone: 312 626 6799 US (Chicago) CALL TO ORDER ROLL CALL CONSIDERATION - ACTION 1. Approve Minutes from August 15, 2023 CDA Meeting 2. Approve August 2023 CDA Financials 3. Review Outstanding Applications 4. Consider Application for 4 Fond du Lac St (Karsten Real Estate) 5. TABLE Application for 321 E Main St (Firefly Gifts) 6. Consider Application for 16 S Madison Street (Gappa Properties) DISCUSSION 7. Discuss Future Funding Sources and Goals of the CDA 8. City Administrator Update ADVANCED PLANNING ADJOURNMENT Upon reasonable notice, efforts will be made to accommodate disabled individuals through appropriate aids and services. For additional information, contact the City Clerk at 920-324-7915.  . MINUTES CITY OF WAUPUN COMMUNITY DEVELOPMENT AUTHORITY MEETING Waupun City Hall – 201 E. Main Street, Waupun WI Tuesday, August 15, 2023 at 7:45 AM Mayor Bishop called the meeting to order at 7:45 a.m. Roll Call taken. Present are Mayor Bishop, Gary DeJager, Sue Vandeberg, Derek Drews, Jill Vanderkin and Cassandra VerHage. Also present Administrator Schlieve, Assistant Administrator Langenfeld and BJ Yohn. Approve Vandeberg, second DeJager to approve minutes from July 18, 2023 CDA meeting. Carried unanimously. Motion DeJager, second Drews to approve July 2023 CDA Financials. Carried unanimously. Review of application for 42 Fond du Lac St for Maedox Tax & Accounting. Schlieve notes that the request is for interior remodel and that is outside the scope of the current program guidelines. However, the guidelines as written do allow the CDA discretion in decisions such as this. Schlieve notes that the business currently serves about 1,800 clients in the area and that it is important to keep an accounting firm in the community. After deliberation, motion DeJager, second Vandeberg to approve a 50% matching grant, capped at $5,000. Carried unanimously. BJ Yohn is present to explain the projects for 14, 16 and 20 W Main Street. The front awning will be removed and each of the three businesses (Edward Jones, State Farm, and B&B Plumbing) will add a canvas awning with their branding to improve the professional appearance of the building. Motion Vandeberg, second Vanderkin to approve 20 W Main (B&B Plumbing) and 16 W Main (State Farm) applications as a matching grant capped at $5,000; and, 14 W Main (Edward Jones) as a matching grant capped at 2,360. Total investments $12,360 for the three projects. Carried unanimously. Motion DeJager, second VerHage to adjourn meeting. Carried unanimously. Meeting adjourned at 7:58 a.m.  CDA Financial Statement For the Month Ending: 8/31/2023 BUDGET REVENUE $ 159,598 ANNUAL ACTIVITY AMOUNT 3/23 WEDC GRANT PAYMENT $ 134,200 3/23 GRANT REIMBURSEMENT STONE & SUEDE $ (105,797) EXPENSE Budget Amt YTD Actual Balance $ 28,403 WAGES $ 15,116 $ (11,551) $ 3,565 PROFESSIONAL SERVICES/AUDIT FEES $ 1,000 $ (2,774) $ (1,774) GRANTS APPROVED - NOT DISPURSED $ 40,000 DEBT PAYMENTS $ 32,967 $ (32,895) $ 72 WEAVING IT UP TO YOU!- cancelled $ - PAYOUT FOR 2023 PROJECTS $ 28,025 $ (29,446) $ (1,421) WIND & UNWIND (est. award $2,565) $ 5,000 IMPROVEMENT PROJECTS $ 40,000 $ - $ 40,000 BROKEN THREADS $ 5,000 TARGETED INVESTMENT/STREETSCAPING $ 53,971 $ (3,650) $ 50,321 K'S BOUTIQUE $ 551 TOTAL EXPENSE $ 171,079 $ (80,316) $ 90,763 JUDSON'S $ 5,000 MAEDOX TAX & ACCOUNTING $ 5,000 STATE FARM $ 5,000 AVAILABLE PROJECT FUNDS EDWARD JONES $ 5,000 IMPROVEMENT PROJECTS $ 4,449 B&B PLUMBING $ 5,000 TARGETED INVESTMENTS/STREETCAPING $ 14,671 CARRYOVER FUNDS PRIOR YEAR(S) $ 49,374 AVAILABLE IMPROVEMENT PROJECT FUNDS $ 4,449 REIMBURSEMENT $ 28,403 $ 96,897 GRANTS - TARGETED INVESTMENTS $ 53,971 GYSBER'S JEWELRY $ 39,300 AVAILABLE IMPROVEMENT PROJECT FUNDS $ 14,671 GRANTS - CARRYOVER FUNDS $ 79,374 WEE CARE DAYCARE $ 30,000 AVAILABLE IMPROVEMENT PROJECT FUNDS $ 49,374  AGENDA SUMMARY SHEET MEETING DATE: September 19, 2023 TITLE: Review Outstanding Applications AGENDA SECTION: Consideration/Action PRESENTER: Kathy Schlieve, Administrator DEPARMTENT GOAL(S) SUPPORTED (if applicable) FISCAL IMPACT Economic Vitality N/A ISSUE SUMMARY The following grant applications are outstanding for review. Where outlined extensions are being requested to complete the work. GRANTS APPROVED - NOT DISPURSED $ 40,000 WEAVING IT UP TO YOU!- cancelled $ - WIND & UNWIND (est. award $2,565) $ 5,000 BROKEN THREADS $ 5,000 K'S BOUTIQUE $ 551 JUDSON'S $ 5,000 MAEDOX TAX & ACCOUNTING $ 5,000 STATE FARM $ 5,000 EDWARD JONES $ 5,000 B&B PLUMBING $ 5,000 AVAILABLE IMPROVEMENT PROJECT FUNDS $ 4,449 The following extensions are being requested: 1. Wind & Unwined until October 31, 2023 2. Broken Threads until November 15, 2023 3. K’s Boutique until October 31, 2023 4. Judson’s until November 30, 2023 STAFF RECCOMENDATION: ATTACHMENTS: RECCOMENDED MOTION: Motion to extend grant application for as presented.  Front Doors 16 S Madison St Signage Back of Building Signage Front Projecting Signage  WISCONSIN COMMUNITY DEVELOPMENT & REDEVELOPMENT AUTHORITIES The following is a partial list of Wisconsin communities that have established a Community Development or Redevelopment Authority. Appleton, City of Muskego, City of Ashwaubenon, Village of New Glarus, Village of Bayside, Village of Oak Creek, City of Beloit, City of Oconomowoc, City of Brodhead, City of Oconto Falls, City of Brokaw, Village of Onalaska, City of Brookfield, City of Platteville, City of Brown Deer, City of Port Washington, City of Cashton, Village of Prairie du Chien, City of Chippewa Falls, City of Columbus, City of Reedsburg, City of Ripon, City of COMMUNITY DEVELOPMENT Cudahy, City of Roberts, Village of DeForest, Village of Delafield, City of Saukville, Village of South Milwaukee, City of AND Eau Claire, City of Edgar, Village of Sparta, City of Stevens Point, City of REDEVELOPMENT Edgerton, City of Sturtevant, City of Fennimore, City of Two Rivers, City of AUTHORITIES Fitchburg, City of Verona, City of Franklin, City of Viroqua, Village of Genesee Depot, Town of Waterford, Village of Glendale, City of Waukesha, City of Grafton, Village of Waupaca, City of Green Bay, City of Waupun, City of Greenfield, City of Wausau, City of Hartland, Village of West Allis, City of Horicon, City of Weston, Village of Janesville, City of Whitefish Bay, City of Juneau, City of Whitewater, City of McFarland, Village of Windsor, Town of Madison, City of Wisconsin Rapids, City of Marathon City, Village of Wrightstown, Village of Marshfield, City of Mazomanie, Village of Medford, City of Menominee Falls, Village of Merrill, City of Middleton, City of Milton, City of Milwaukee, City of Monona, City of Monroe, City of Mt. Horeb, Village of On-going budget worries and citizen pressures for “smart In addition to these benefits, there are also several detriments to growth” have made the use of CDA’s and RDA’s—Community creating a CDA. The primary one being that the local governing Development Authorities and Redevelopment Authorities—more body or Planning Commission loses direct control of popular than ever. These quasi-governmental agencies give redevelopment projects. The decision making authority rests municipal governments grater flexibility to address development with the CDA commissioners, only two of which can be issues through public-private partnerships while providing members of the local legislative body. However, the local alternative avenues for financing projects. It is especially government is able to limit the powers of the CDA through the beneficial to have the ability to provide flexible incentives to creation resolution of its initial establishment. private property owners in the case of a downtown redevelopment TIF, because these efforts often require costly The local governing body must also approve the CDA’s budget improvements to existing structures. annually and all project redevelopment plans. In order to prepare a redevelopment plan, the CDA must identify an area as blighted, which the local governing body must also approve. CDA VS. RDA—WHAT’S THE DIFFERENCE? A CDA and an RDA have similar structures and powers. The A drawback to establishing any committee or organization is the primary difference is that a CDA includes all the powers given to hours that are required for it to operate. It needs to be staffed Housing Authorities. If a municipality already has a Housing and volunteers need to be found to serve as commissioners. Authority and wants to keep it as a separate organization, then it Some communities intentionally form their Plan Commission as would create an RDA. If a single organization is desired, the the CDA to address this issue. The establishment of a CDA Housing Authority would then be dissolved and a CDA would be implies the need for redevelopment in a community. Along with created. For the purposes of this information, we will use the redevelopment comes added expense. Preparing a term CDA and imply both CDA and RDA. redevelopment plan and staffing expenses should be considered an investment when moving forward with needed improvements WHAT IS A CDA? in the community. Although these negative aspects are A CDA is created by the municipal government as a separate important to consider, many communities find that the positive organization with its own governing body. Only two members of contributions that a CDA bring to the community far outweigh the seven-member board can be local government negative ones. representatives. The purpose of the organization is to prevent and eliminate blighted areas within the local government jurisdiction. It has the power to condemn property, buy and sell real estate, POWERS OF A CDA The following is a list of local powers that a Community issue bonds, and enter into contracts, among other powers. Development or Redevelopment Authority is able to hold in a community. A CDA is authorized by Sections 66.1333 (Redevelopment Authorities) and 66.1335 (Community Development Authorities) 1. Prepare or cause to be prepared redevelopment and urban of the Wisconsin State Statutes. It is established by resolution or renewal plans and to undertake and carry out redevelopment ordinance of the local governing body, and governed by a seven and urban renewal projects within the corporate limits of (7) member commission. In order to exercise the power of a the Village. CDA, a redevelopment district is established and a 2. Enter into contracts determined by the authority to be redevelopment plan is prepared. necessary to effectuate its purposes and objectives. 3. Acquire by purchase, lease, or eminent domain real or HOW IS A CDA FUNDED? personal property necessary or incidental to a A redevelopment authority can be funded through various tools. redevelopment or urban renewal project. Of course they could be funded directly through the local 4. Hole, improve, clear, or prepare property for redevelopment municipality, but there are also several other tools that are or urban renewal projects. available to fund a CDA or RDA. Tax Incremental Financing 5. Sell, lease, subdivide, retain real property or make available (TIF) is an economic development tool that is often used to for Village’s use. establish redevelopment plans for blighted areas. TIF is able to HOW DO THEY PROS AND CONS 6. Develop covenants, restrictions, or conditions for property. direct funds to a CDA to help fulfill the purpose of the TIF. In Developing a CDA generally has both positive and negative attrib- 7. Temporarily operate and maintain real property. addition, many grants are available to redevelop blighted or EXERCISE POWER? utes. A CDA signifies a single agency that has the responsibility to 8. Enter any building or property in any project are to make contaminated areas. The community may also choose to borrow In order to exercise the powers of a redevelopment authority, a district address and carry out redevelopment issues within the community. inspections, surveys, appraisals, soundings, or test borings. the fund necessary to establish and maintain a CDA/RDA, or boundary and redevelopment project area must be established. The dis- One major benefit of an established CDA is that it can act as a buffer 9. Own and hold property and to insure property and its funds may be available from the sale of real estate that has been trict should largely be made up of blighted properties and in need of between the local governing body and the private sector in an acquisi- operations against any risks or hazards. acquired by the CDA. redevelopment. If the district is appropriate to be a redevelopment area, tion, condemnation, relocation and disposition of a property. This 10. Invest any project funds held in reserve or any funds not the municipality must pass a resolution declaring the district a blighted ability provides the potential to protect the local government from required for immediate disbursement. area. The CDA or RDA will then prepare a redevelopment plan for the 11. Borrow money and issue bonds to finance its activities and HOW IS ONE ESTABLISHED? district, which will include an inventory of projects that should be un- associated liability. for carrying out its projects. To establish a CDA, the local government must adopt a dertaken with an estimated budget of each. When the redevelopment 12. Apply for and accept advances, loans, grants, contributions resolution or ordinance that will create a CDA or RDA, which A CDA also has the ability to issue bonds for projects without count- plan is complete, a public hearing is held for people to ask questions and ing against the local government’s statutory debt limit. CDA projects and any other form of financial assistance from the Village, will be a seven-member commission appointed by the Mayor or find out more information about the district and proposed projects. Af- County, State, Federal government, or other public or Village President. At least one of the Commissioners must be a are eligible to obtain double tax-exempt bonds which may be able to ter the public hearing, the local municipal government must approve the provide lower rates than those obtained through other financing. An private body. member of the local legislative body, but no more than two of the plan. The CDA/RDA will then certify the plan to the local legislative 13. Debt or obligation of the authority shall not be deemed debt Commissioners may be officers of the local governing body. established CDA also provides greater flexibility when creating and body and can thereafter exercise its power. Any projects that the rede- implementing a TIF district. The TIF district is able to fund CDA or obligation of the Village, County, State, or any other Commissioners, as much as possible, should include velopment authority undertakes must be in conformance with the certi- governmental authority. representatives from the general public, labor, industry, finance activities that the local government may not be able to undertake di- fied redevelopment plan. rectly, such as making direct loans or grants to projects. 14. Bonds issued by a redevelopment authority are declared to or business and civic organizations. be for essential public purpose and, together with interest