Community Development Authority Board of Directors

Community Development Authority Board of Directors Whitewater Municipal Building Community Room, 312 West Whitewater St., Whitewater, WI 53190 *In Person and Virtual Thursday, May 15, 2025 - 5:30 PM MINUTES CALL TO ORDER The meeting was called to order by Board Member Coburn at 5:30 p.m. ROLL CALL PRESENT Board Member Thayer Coburn Board Member Kelsey Price Council Representative Orin O.Smith Board Member Christ Christon Council Representative Brian Schanen ABSENT Board Member Jon Kachel Board Member Joseph Kromholz INTRODUCTION OF INTERIM ECONOMIC DEVELOPMENT DIRECTOR Emily McFarland, Interim Economic Development Director, provided an overview of her previous experience. She is the former Mayor of Watertown.Throughout her career, Emily has worked in all levels of government. She is a lifelong resident of Watertown and is committed to economic development in the region. APPROVAL OF AGENDA A committee member can choose to remove an item from the agenda or rearrange its order; however, introducing new items to the agenda is not allowed. Any proposed changes require a motion, a second, and approval from the Committee to be implemented. The agenda shall be approved at each meeting even if no changes are being made at that meeting. CONFLICT OF INTEREST Would any board member wish to declare any known Conflict of Interest with the items presented on today's CDA Board Agenda? None noted. Community Development Authority Board of Directors Minutes May 15, 2025 Page 2 CONSENT AGENDA Items on the Consent Agenda will be approved together unless any committee member requests that an item be removed for individual consideration. Motion to approve the Consent Agenda made by Council Representative O.Smith, Seconded by Board Member Price. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen 1. Approval of April 8, 2025, Special Meeting Minutes 2. Approval of April 17, 2025, Meeting Minutes 3. Approval of March 2025 Financials 4. Update on status of demolition projects at 108 W Main, 216 E Main, 126 N Jefferson HEARING OF CITIZEN COMMENTS No formal Committee action will be taken during this meeting although issues raised may become a part of a future agenda. Participants are allotted a three minute speaking period. Specific items listed on the agenda may not be discussed at this time; however, citizens are invited to speak to those specific issues at the time the Committee discusses that particular item. To make a comment during this period, or during any agenda item: On a computer or handheld device, locate the controls on your computer to raise your hand. You may need to move your mouse to see these controls. On a traditional telephone, dial *6 to unmute your phone and dial *9 to raise your hand. None. PRESENTATIONS 5. Presentation by Lemon and Sage Beauty Lounge Lucca Myszkewicz, Owner and Lead Esthetician, presented information on her new business, Lemon and Sage Beauty Lounge. This will be a day spa collaborating with other local business to offer retail, classes, group events. The focus is to be a place for smaller businesses that may not have a brick and mortar presence, to host their items or come in and teach a class. The focus is to offer what others consider may consider luxuries at an affordable price by partnering with as many local community business as possible. The full presentation is included in the meeting materials. DISCUSSION Board Member Christon confirmed that the business location, 113 W North St, would be used solely for business purposes. Board Member Christon asked if, as a new business owner, there was a mentor involved in business development. The owner of a successful salon in Janesville is involved as mentor. Community Development Authority Board of Directors Minutes May 15, 2025 Page 3 Additional questions regarding the financial statements and business plan will be discussed in Closed Session. CONSIDERATIONS / DISCUSSIONS / REPORTS 6. Discussion and possible action on CDA policy updates Interim EDD McFarland explained that the team is in the process of creating clear documentation of our procedures, including the development process and the loan programs. We are currently relying on documents that are 5-10 years old. CDA board members were asked to review documents that are advertised to the public on the website, to ensure they are the most current. Board Member Coburn stated that he had trouble finding these documents on the website. Staff was instructed to compile a list of links to the documents and send out to the board for review. 7. Discussion and possible action on responses to RFP for Brokerage Services Interim EDD Emily McFarland explained we have included responses to the RFP in the board materials. She did not offer a recommendation as she does not have sufficient historical context on the situation. Interim EDD McFarland requested that the board evaluate the responses, note any additional details that may need to be included in the contract, and direct staff to draft the contract for the city attorney's review, then present it to Council. Kristen Parks, Vice President, Anderson Commercial Group, was present in-person and Tim Vandeville, owner of Legacy Realty Group attended the meeting on-line. Board Member Shannen asked about the different fee structure in each propsal; one is four percent and one is ten percent. Kristin Parks, stated that their 10% fee is calculated on the original list price. It covers consulting throughout the process and includes co-broker fees. This is the same as in their previous contract with the city of Whitewater. Tim Vandevile explained that their fee structure is derived from a different business model. The four percent fee proposed covers the listing side. This provides flexibility and potential savings for the City. If for example, a buyer reaches out to Legacy about the sale of a property and Legacy represents the buyer as well, only the 4% fee would apply, there would be no additional buyer's broker fee. This allows for flexibility and potential cost savings for the seller. DISCUSSION Board Member Christon referred to issues discussed at the March meeting regarding problems with Anderson Group's response time and follow through. Kristen Parks explained that the from her experience, the communication breakdown was on both sides. In order to address it, Anderson Group assigned a different point of contact for the City. Then in March, yet another team member became the City's contact. She did Community Development Authority Board of Directors Minutes May 15, 2025 Page 4 not feel that this completely resolved the matter. Kristen noted that regardless of the decision on this RFP, Anderson Group has a significant presence in this area and would like to have a good relationship moving forward with the city of Whitewater. Board Member Coburn said that he felt that the past issues were not worth revisiting. Currently the CDA has two proposals to evaluate. The two board members that are best equipped to provide substantial feedback (a lawyer and a banker) were unable to attend this meeting, therefore, CDA should not make a decision until their feedback is included in the discussion. Interim EDD McFarland noted that since Anderson's contract was non-renewed, the city does not have an agent until a new contract is executed. Motion to table this item until the June meeting made by Board Member Coburn, Seconded by Board Member Christon. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen 8. Discussion and possible action on Becker & Bolton deal re: 501 N Prospect Drive (292- 0515-3434-001) Interim EDD McFarland stated this issue was brought to her attention by staff. Based on limited development activity to date at the site, there is a concern that the property will not meet the assessed value required by the development agreement of $3.75 million at 1/1/2026. Interim EDD McFarland asked if this body wanted to take any additional steps to address this issue now, or wait until 1/1/2026 and then take action if the developer is out of compliance with the development agreement at that time. Motion to abide by the development agreement and initiate the non-compliance terms 1/1/2026 if the assessed value is not reached at that time made by Board Member Coburn, Seconded by Council Representative Schanen. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen 9. Discussion and possible action on Down Payment Assistance Loan for 1274 W Court St (/WP 0027) Interim EDD McFarland added that part of the policy evaluation that staff is undertaking includes a more comprehensive approach to the affordable housing policy, which may change the way these decisions are handled in the future, but for now recommended proceeding as they have in the past. Motion to approve the down payment assistance loan for 1274 W Court St as presented, made by Board Member Coburn, Seconded by Board Member Price. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen Community Development Authority Board of Directors Minutes May 15, 2025 Page 5 CLOSED SESSION Adjourn to Closed Session, TO RECONVENE, pursuant to Wisconsin Statutes 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. Items to be discussed: Motion to move into Closed Session made by Board Member Coburn, Seconded by Council Representative Schanen. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen 10. Safe Pro Loan Terms 11. Loan Request from Lemon and Sage Beauty Salon 113 W North St 12. Edgerton Hospital Loan terms RECONVENE INTO OPEN SESSION Motion to reconvene into Open Session made by Board Member Thayer, seconded by Council Representative Shannen. Motion carried by voice vote. 13. Review and take potential action Safe Pro loan terms Motion to instruct city staff to execute a $100,000 loan agreement with SafePro Technology at 4% interest from the Action Fund with the same repayment terms as the previous loan and no additional caveats. Motion made by Board Member Coburn, Seconded by Council Representative O.Smith. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen 14. Review and take potential action Lemon & Sage loan request Motion to instruct city staff to execute a loan agreement for $19,000 from the Action Fund at a 4% interest rate with a duration to be determined and a personal guarantee for phases one and two of the project. Motion made by Board Member Coburn, Seconded by Board Member Price. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen Board Member Coburn encouraged them to return after they have been up and running for a few months to further discuss phases three and four of the project. 15. Review and take potential action Edgerton Hospital loan terms Motion to instruct staff to execute a loan agreement with Edgerton Hospital for $140,000 from the Action Fund with a default rate of 5%, with the stipulation that the clinic be open for reasonable amount of hours for daily operation. Community Development Authority Board of Directors Minutes May 15, 2025 Page 6 Motion made by Board Member Coburn, Seconded by Council Representative O.Smith. Voting Yea: Board Member Coburn, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen FUTURE AGENDA ITEMS Monthly Status Reporst on Collections - scheduled for June meeting Key Fobbing at the Innovation Center RFP for Brokerage & Listing Services ADJOURNMENT Motion to adjourn made by Council Representative Shannen; seconded by Council Representative O. Smith. Motion carried by voice vote. A quorum of the Common Council may be present. This notice is given to inform the public that no formal action will be taken at this meeting. Anyone requiring special arrangements is asked to call the Office of the City Manager / City Clerk (262-473-0102) at least 72 hours prior to the meeting.