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, July 17, 2025 - 5:30 PM MINUTES CALL TO ORDER The meeting was called to order at 5:32 p.m. by Board Member Kromholz (Chair). ROLL CALL PRESENT Board Member Thayer Coburn Board Member Joseph Kromholz Board Member Kelsey Price Council Representative Orin O.Smith Board Member Christ Christon Council Representative Brian Schanen Board Member Kachel joined via phone for Closed Session and remainder of meeting. 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. Motion to approve the agenda, made by Council Representative O.Smith, Seconded by Board Member Coburn. Motion carried by voice vote. 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. 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 as presented, made by Council Representative O.Smith, Seconded by Council Representative Schanen. Motion carried by voice vote. Community Development Authority Board of Directors Minutes July 17, 2025 Page 2 1. Approval of June 2025 Minutes 2. Update on May Attorney Fees 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. CONSIDERATIONS / DISCUSSIONS / REPORTS 3. Housing Strategy Update (EDD McFarland) EDD McFarland explained that the Housing Strategy Update memo included in the packet went to Common Council in June, at which time she was directed to bring the memo to this body as well. At the August 19, 2025, Common Council meeting, she will provide a written response to Council's questions as well as to questions raised about the memo at this meeting. Bob Friermuth, W9597 Breidsan Drive, owner and operator of HSI Rentals, talked about the rental market in Whitewater and the vacancy rate, and use of TIF funding, and jobs available in Whitewater. Andrea Svec, W7679 Sherida Road, talked about the number of medium and high-density apartments in the community, the rates at which TIF funds are being approved for developers,and the consequences for tax payers. Joyce Hutchison, 414 S. Douglas Court, talked about high rents that are not affordable, subsidies to developers, and concerns about increasing taxes on homeowners especially those on limited incomes. James Hartwick, 164 N. Franklin St., asked why we are considering more apartments especially in light of the enrollment decrease at the university and already have vacant apartments in the community, who would live in the apartments (if not students) and could they afford the rents, use of TIF funding, and the costs for additional schools and city services. Brad Ceranske, N9503 Woodward, manager of local rental business, talked about his increasing property taxes. He also asked for options for subsidizing improvements for existing rental property improvemengs for local business rather than to outside developers to build new rentals. Community Development Authority Board of Directors Minutes July 17, 2025 Page 3 Nancy Boyer, 1270 E Jakes Way #9, talked about the impact of new development on her taxes and on quality of life as new apartments are built in her neighborhood. Brian Zellmer, 1270 E Jakes Way, #14, expressed concern over the effect building large, mutli-family complex has on infrastructure, and current vacancy rate. Jeff Knight, 405 Panther Court, former CDA board member, handed out a memo to CDA board members written by the Wisconsin Legislative Council on the Effects of a Tax Incremental District on Municipal Levy Limits and memo written by Rachelle Blitch, Director of Financial & Adminstrative Services for the City of Whitewater, on the property tax levy . The documents are attached to the minutes. He talked about the effect of TIF on all residents' taxes. Terry Stritzel, W5524 Tri County Road, lives outside the city but owns real estate in the city, talked about consistently increasing property taxes and the high rents that will be charged for the new apartments. Renee Monestero, 217 N Park Street, retired firefighter. She stated that her property taxes went up 100% since 2021. She talked about lack of affordable housing and the need to bring in more industry. Mareta Hale, W6238 Bluff Road, also owns rental property in Whitewater. She expressed concern about filling the existing apartment units, and asked about ways to subsidize business and industry and wondered how the City promotes available buildings for new businesses to move into. Frank Ziebarth, 241 Woodland Drive, asked if taxes are being paid on assessed value, talked about nonprofits not paying property taxes, and about how TIF is being used in Whitewater. Ben Freiermuth, 212 S Second St, talked about the financial sustainability of small businesses due to the tax burden and about how TIF is being used in Whitewater compared to other communities. 4. Presentation Stonehaven Development (EDD McFarland) EDD McFarland referenced the memo in the packet explaining the intended purpose of the project is to build 1300-1500 square foot single family homes with poured basements, site concrete, appliances, and some landscaping. These elements that are frequently add-ons in new construction, are anticipated to be incorporated into the purchase price. The offer to purchase will be discussed in closed session. Tim Vanderville, Jr., CEO of Stonehaven, provided an overview and answered questions. Board Member Coburn asked about the lot between the site for this project and the Bluff Ridge Market Place. EDD McFarland will provide an update to CDA members on this via email as this item was not on the agenda. This item was later requested to be on the next agenda, so an update will be provided via that mechanism Board Member Kromholz asked Mr. Vanderville for a brief explanation of modular housing, which he provided. Community Development Authority Board of Directors Minutes July 17, 2025 Page 4 Council Representative Shanen asked about weather-proofing and ability to withstand cold winters and tornadoes. Mr. Vanderville explained that these homes must meet the same Wisconsin Uniform Dwelling code standards as stick-built homes, and in some cases exceed them because they also have to withstand the being transported into place. Terry Stritzel, W5524 Tri County Road, spoke about owning a modular home and attested to its quality. Larry Kachel, 457 S. Buckingham Boulevard, asked about sale price, if the city is giving the land to the developer, and if the developer would be asking for TIF and at what rate. Brad Ceranske, N9503 Woodward, asked if these homes were to be slab on grade or with basements. They are intended to have basements. CLOSED SESSION Convene into Closed Session pursuant to Wisconsin Statutes 19.85(1)(e) for the: 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. The CDA will discuss: John Kachel joined virtually for Closed Session. Motion to move into Closed Session made by Board Member Price, Seconded by Board Member Coburn. Voting Yea: Board Member Coburn, Board Member Kachel, Board Member Kromholz, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen Items to be discussed: 5. Offer to Purchase /A503200001 and /A503200002 6. Property acquisition/sale related to 210 E Main St; including the discussion of the offer to purchase and potential counter-offer RECONVENE INTO OPEN SESSION Motion to reconvene into Open Session made by Board Member Coburn, Seconded by Board Member Price. Motion carried by voice vote. 7. Review and take potential action: Offer to purchase /A503200001 and A/503200002 Motion to recommend approving the offer to purchase made by Board Member Kromholz, Seconded by Council Representative O.Smith. Voting Yea: Board Member Coburn, Board Member Kachel, Board Member Kromholz, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen 8. Review and take potential action: Property acquisition related to 210 E Main Street Motion not to pursue the purchase of 210 E Main made by Board Member Kromholz, Seconded by Board Member Price. Community Development Authority Board of Directors Minutes July 17, 2025 Page 5 Voting Yea: Board Member Coburn, Board Member Kachel, Board Member Kromholz, Board Member Price, Council Representative O.Smith, Board Member Christon, Council Representative Schanen FUTURE AGENDA ITEMS Update on Royal Hounds Property, tax key /A323600002 on Bluff Rd ADJOURNMENT Motion to adjourn made by Board Member Coburn, 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.