Village Board of Trustees

Board of Trustees Minutes 02/24/2014 Meeting of the: BOARD OF TRUSTEES Members: Loren White {c}, Scott Berger, Barb Ermeling, Sharon Jaeger, Mark Porlier, Fred Schuster, & Jon Ziegler Location: Weston Municipal Center (5500 Schofield Ave) – Board Room Date/Time: Monday, February 24, 2014 @ 6:00 P.M. 1. Call to Order 1.1 Pledge of Allegiance. 1.2 Roll Call of Attendance White called the meeting to order at 6:00 p.m. Present: White, Ermeling, Porlier, and Schuster. Jaeger, Ziegler, and Berger were absent and excused. Administrator Guild, Finance Director Jacobs, and Recording Secretary Parker were also present. There was one audience member in attendance. 2. Comments from the Public None. 3. Communications None. 4. Consent Items None. 5. Reports from Staff None. 6. Business Items for Consideration 6.1 Discussion and consideration of counteroffer from WJHiggins & Associates regarding purchase of land in Business Park South. Guild explained WJHiggins was not able to attend this meeting due to a family illness. Jacobs explained through his attached handout the potential impact in tax revenue and income to the TIF District. One side of this handout (which shows a map of the 2.661 acre lot layout), showing .661 acres of this lot being unbuildable wetlands with a drainage easement. The remaining 2 acres is buildable. White pointed out there is also an ANR pipeline easement which runs through this lot as well, which cannot be built over. Jacobs explained the other side of this attached handout gives an analysis of the assessed valuation and sales price options, when comparing the full 2.661 acre lot versus splitting off the .661 unbuildable area, and comparing the difference in sales price at $10,000 per acre versus $12,500 per acre. Jacobs explained the assessed value calculation is based on what Village Assessor, Greg Schmidt, would calculate as an assessed value being consistent with all the Business Park Village of Weston Page 1 Board of Trustees Minutes 02/24/2014 properties on the north and south sides of State Highway 29 (which is $0.80 cents per square foot). He explained his calculations which would ultimately give an estimated assessed value of $69,700 for the buildable portion of this lot. Jacobs then explained the assessed value calculation for the .661 acre portion of land which is unbuildable. He stated Schmidt has a $700 per acre valuation for lands considered wetland areas, which brings the estimated assessed value for the unbuildable area of $500. Jacobs explained the Village could potentially collect $10,435 annually in real estate property taxes for this parcel, which would be applied to the TIF District debt, using the total estimated assessed land values plus the proposed estimated building value of $400,000 and multiplying those by our 2013 assessed tax rate ($22.193687). Guild confirmed the proposed building is planned to be constructed this year. Jacobs then explained the Village would not see these tax dollars until December, 2015, which will help us in budget year 2016 (as the building assessed value is not added to the property until after the 1 st of January, preceding the construction of the building). Jacobs then explained the sales price options, whether WJHiggins purchases the full 2.661 acres or just the 2 acres, based on both the $10,000 original offer as compared to the $12,500 counteroffer by the Village. This calculation showed the difference being $5,000 for the 2 acre piece, or $6,653 price difference if the entire 2.661 acres were purchased. Jacobs clarified the sales price dollars have no relationship to the assessed value calculations, which would be placed on this parcel. Jacobs also referenced the $15,000 - $20,000 per acre fair market value that was identified in the recent Newmark Gruff Pfefferle’s “Broker Opinion of Value” report that was prepared for the Village. Jacobs confirmed to White, in order to be at the fair market value, it would take 4.5 years in tax revenue to recover the difference in sales price and the revenue generated at the property. There would not be much interest income revenue added on top of this amount. Jacobs confirmed to White there is no TIF grant money available to potential buyers. He then discussed there may be some fund balance money available to cover the internet extension. White agreed having internet access would make the entire Business Park South more marketable. Guild explained there are a lot of moving pieces here, which we are not only concerned about this one aspect of the sale, but we are also concerned about our policy for handling the sales of this lot, and all other land sales within this business park. Schuster pointed out our concerns are only based on current conditions at this time. Guild agreed, this is for the current strategy governing the sale of these properties. Guild raised some policy questions for the Trustees. The main question was how they felt on going from $12,500 per acre to the $10,000 per acre counteroffer? The second policy question is related to the Trustees previous expectation of a fully completed and approved (by Plan Commission and Trustees) site plan by the proposed buyer, prior to the Village accepting a land offer to purchase as a reduced sales price. Staff Village of Weston Page 2 Board of Trustees Minutes 02/24/2014 had indicated in a recent staff meeting, there are extensive costs involved in preparing a complete site plan, which is basically then ready for State approvals. These plan costs could range $30,000 - $40,000, which is very difficult for a “potential” buyer to put forth that much money towards a site plan for property they do not own yet, which the site plan may ultimately not be approved. Guild stated a suggestions that was made, if it is mostly a concern of the Trustees on the aesthetics, architecture, and the quality of the building shell, which is to instead have applicants submit a general site plan layout with building elevations, which is basically a preliminary plan. This plan could then be taken to the Plan Commission for preliminary approvals, which then the Trustees could act on the preliminary approvals. In this way, a potential buyer would not need to obtain full site plan approvals in order get the commitment from the Village to sell the property. Ermeling and Porlier both do not have a problem with the Village selling the land to them with the understanding we would get some kind of a preliminary plan approval. Guild confirmed the Trustees are more concerned with the shell of the building, the brick requirement, how the building will look in relation to the neighborhood and landscaping. Porlier commented they still have to meet our regulations in the end, as everyone else does. Guild pointed out a full site plan approval will be submitted and approved prior to the actual building constructed on the lot. Ermeling and Porlier agreed they would like to see Lot 2 sell in its entirety (2.661 acres). Guild stated if they did not want to purchase the wetland area, the Village would do a lot amendment to add that land to the conservancy through a survey. However, this would then bring up an issue of who does the surveying and is responsible for the associated costs. Ermeling feels since the Village already surveyed and is selling this land as Lot 2, if WJHiggins does not want that wetland area, they should be responsible for the costs associated with splitting it off. Guild explained the wetlands here is not necessarily an issue, but discussions on this did come up. With the amount of snow on this entire property, it is difficult for anyone to see the actual characteristics of this wetland area. Schuster commented, with them being an architectural firm, perhaps they would use that land as a decorative feature. Porlier commented adding a walking path in there. Guild questioned how many of these scenarios does the Board want him to run by them, or are they comfortable enough to give him the authority under certain parameters to negotiate and finalize these sales. White summarized the Trustees are willing to sell the land, but are concerned about whether they want to purchase the full 2.661 acres, if so, the wetland area (stormwater drainage area) would be sold at less than $10,000 per acre. Schuster feels the Village should propose the entire area, but if there is an issue with respect to the stormwater drainage area, Guild can negotiate from there. Village of Weston Page 3 Board of Trustees Minutes 02/24/2014 *M/S/P Schuster/Ermeling: to agree to the $10,000 per acre, with the understanding we have a preliminary site plan approval through the Plan Commission and presented before the Village Board; and giving authority to Guild to negotiate the final details of the sale based on discussions above. 6.2 Convene into Closed Session under Wis. Stats 19.85 (1)(e), to deliberate whenever competitive or bargaining reasons require a closed session to further consider WJHiggins Offer to Purchase land from the Village of Weston in Business Park South, and to consider negotiation strategy for the sale of the land in Business Park South. None. 6.3 Reconvene into Open Session and take action on closed session item, if necessary. None. 7. Report from Administrator None. 8. Remarks from President/Trustees None. 9. Adjourn White adjourned the meeting at 6:25 p.m. Respectfully, Valerie Parker Recording Secretary Village of Weston Page 4