Community Development Authority Board of Directors Meeting (In-Person & Virtual)

Community Development Authority Board of Directors Meeting (In-Person & Virtual) Minutes February 15, 2024 Page 1 Community Development Authority Board of Directors Meeting (In-Person & Virtual) Whitewater Municipal Building Community Room, 312 West Whitewater St., Whitewater, WI 53190 *In Person and Virtual Thursday, February 15, 2024 MINUTES CALL TO ORDER Board Member Kromholz called the meeting to order at 5:30 p.m. ROLL CALL PRESENT: Joe Kromholz, Jon Kachel, Jill Gerber, Jeff Knight, Thayer Coburn. ABSENT: Patrick Singer, Lukas Schreiber. STAFF: John Weidl (City Manager), Bonnie Miller (CDA Administrative Assistant). Elect Board Chair due to Patrick Singer appointment to Common Council Board Member Coburn nominated Joe Kromholz to act as Interim Chair; AYES: Coburn, Gerber, Kachel, Knight, Kromholz. NOES: None. ABSENT: Singer, Schreiber. Moved by Knight to waive the 72-hour notice required by the City of Whitewater Transparency Ordinance to consider electing a new Board Chair; seconded by Kromholz. AYES: Coburn, Gerber, Kachel, Kromholz, Knight. NOES: None. ABSENT: Singer, Schreiber. APPROVAL OF AGENDA Moved by Coburn to approve the Agenda; seconded by Kachel. AYES: Gerber, Knight, Kachel, Coburn, Kromholz. NOES: None. ABSENT: Singer, Schreiber. DECLARATION OF CONFLICT OF INTEREST. Roll Call: NOES: Gerber, Coburn, Kromholz, Knight, Kachel. HEARING OF CITIZEN COMMENTS. Daniel Kistle (327 E. Clay Street) representing Alpha Holdings introduced himself and his spouse Jhinelle Kistle to the Board as potential developers of a doggie daycare facility in the City. Kristen Parks of Anderson Commercial Group (5000 Town Drive, New Berlin) provided a short update regarding their real estate marketing efforts on behalf of the City of Whitewater. APPROVE MINUTES 2. Approval of January 18, 2024 CDA Board Meeting Minutes. Moved by Coburn to approve the January 18, 2024 CDA Board Meeting Minutes; seconded by Gerber; after brief discussion, Coburn withdrew his motion to approve to allow Staff to review the meeting video and update the draft of the Minutes to reflect the request for a report from the Interim-Economic Development Director on the status of CDA funds. The January 18, 2024 Minutes were tabled until the March Board meeting. Community Development Authority Board of Directors Meeting (In-Person & Virtual) Minutes February 15, 2024 Page 2 3. Approval of Minutes of January 31, 2024 CDA Special Meeting. Approval of the Minutes as submitted was tabled until the March meeting. APPROVE FINANCIAL STATEMENTS 4. Review and acknowledge Preliminary Financial Statements for period ending December 31, 2023. (Income/Expense & Balance Sheet do not reflect the auditors GASB Pension entries of the fixed asset depreciation entries.). Miller clarified that the Financials submitted are preliminary only subject to revision. Coburn moved to approve the preliminary Financial Statements subject to revision; seconded by Kromholz. Motion approved by unanimous voice vote. ACTION ITEMS 5. Consideration and approval of Whitewater WindUp (WWUP) Business Competition Eligibility Criteria and Application. Moved by Kachel to approve the Whitewater WindUp business competition eligibility criteria and application as presented, subject to the following modifications: Page 3, add Item 18: “All finalists shall be reviewed by the CDA, and all awards shall be approved by the CDA.” Discussion ensued regarding the need for those modifications.” Motion seconded by Kromholz. Roll Call: Ayes: Knight, Coburn, Kachel, Kromholz, Gerber. NOES: None. ABSENT: Singer, Schreiber. 6. Discussion and possible action regarding request for revisions to Downpayment Assistance and the Affordable Housing Fund Program. City Manager Weidl provided a summary of the changes as suggested by Nate Parrish from First Citizens State Bank to enhance program accessibility and effectiveness. Moved by Knight to approve, seconded by Knight. Moved by Knight to approve the three changes as recommended contingent upon approval as to compliance by the City Attorney; seconded by Kachel. Roll Call: AYES: Kromholz, Gerber, Kachel, Coburn, Knight. NOES: None. ABSENT: Singer, Schreiber. UPDATES AND DISCUSSIONS 7. Update regarding economic development activities. CDA Staff is working on a master list of businesses in Whitewater and updating contact information. Contacted eight business this week and have five BRE’s scheduled for next week. We have a working draft of questions that will be used for BREs. Demolition at the Aldi’s site has begun and the first building is down. They are doing asbestos removal in the back building which is slated to come down beginning February 22 nd. Demolition on the Hawk Bowl is scheduled to follow within the 2-3 weeks. The Re-Plat of Mound Meadows which has been approved by the State has been received and is progressing through the execution process with the City, the JM Meadowview LLC, US Shelter Homes and Walworth County. As soon as the Re-Plat has been recorded, US Shelter Homes can begin application for building permits. Kristen Fish-Peterson is working on a proposal for a housing project on the Pearson Hale Farm LLC property on Warner Road. City Staff did a walk-through of the Bowers House Project at 183 W. Main Street. Repairs to the roof and interior support structure of all three floors of the building is nearing completion. Demolition of interior walls and removal of debris is an ongoing process. EXECUTIVE SESSION Moved by Kromholz and seconded by Gerber to adjourn to Closed Session, TO RECONVENE, pursuant to Wisconsin Statutes 19.85(1(e) "Deliberating or negotiating the purchasing of public properties, the Community Development Authority Board of Directors Meeting (In-Person & Virtual) Minutes February 15, 2024 Page 3 investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session. Items to be discussed: 8. Consideration of Letter of inquiry regarding acquisition of approximately 3 acres of vacant land in the Technology Park (TP) located on Howard Road (part of Tax Parcel No. /A444200003) at a price of $87,000. 9. Consideration and possible action regarding request for Amendment to Offer to Purchase entered into with Larry Chapman for acquisition of vacant parcel of land located on Prospect Drive (Tax Parcel No. 212-0515-3434-003). 10. Consideration of Offer to Purchase approximately 1 acre of vacant land located on Bluff Road (Tax Parcel No. /A323600002) at a price of $30,000. 11. Update and possible action regarding Offer to Purchase entered into with Quality Industries Inc. for acquisition of a vacant parcel of land located on Starin Road (Tax Parcel No. /WUP 00018D). 12. Consideration and possible action regarding application from Walworth County Habitat for Humanity for $25,000 Developer Incentive under the Affordable Housing Policy for new single-family residential at 896-3A South Franklin Street. 13. Negotiation and possible action regarding Whitewater University Innovation Center Lease Agreement with Blue Line Battery, Inc. Motion passed by unanimous roll call vote. Moved by Knight and seconded by Coburn to reconvene to Open Session. Motion passed by unanimous roll call vote. RECONVENE INTO OPEN SESSION. Kromholz noted that there would be no action taken on Item 8. Moved by Coburn and seconded by Kromholz to approve Item 8 as recommended to amend the Offer to Purchase to extend the due diligence period to allow Buyer to secure a tenant for the facility, provided the proposed the amendment include a 30-day bump clause allowing the City to accept a bona fide secondary Offer to Purchase. Roll Call: AYES: Gerber, Coburn, Kromholz, Knight, Kachel. NOES: None. ABSENT: Singer, Schreiber. Motion passed. Moved by Coburn to accept the Offer to Purchase approximately 1 acre of vacant land located on Bluff Road (Tax Parcel /A323600002) at a price of $30,000, contingent upon terms and conditions of a Development Agreement acceptable to the CDA and the Common Council. Roll Call: AYES: Knight, Coburn, Kachel, Kromholz, Gerber. NOES: None. ABSENT: Singer, Schreiber. Motion passed. Moved by Coburn and seconded by Kachel to terminate the current Offer to Purchase entered into between the CDA and Quality Industries, Inc. for the acquisition of a vacant parcel of land located on Starin Road at a price of $403,390 based upon the failure of Buyer to provide the escrow payment on time and to enter into a new Offer to Purchase with Buyer on the same terms and conditions, with the addition of a 60-day bump clause. Roll Call: AYES: Kromholz, Gerber, Kachel, Coburn, Knight. NOES: None. ABSENT: Singer, Schreiber. Motion passed. Moved by Knight to approve the application from Walworth County Habitat for Humanity for a $25,000 Developer Incentive under the Affordable Housing Fund Policy for new single-family residential home at Community Development Authority Board of Directors Meeting (In-Person & Virtual) Minutes February 15, 2024 Page 4 896-3A South Franklin Street. Motion by Knight to amend the motion to provide that the grant be in an amount equal to the cost of the well and septic improvements. Motion failed to receive a second. Moved by Kromholz to approve the application from Habitat for Humanity of Walworth County for a $25,000 Developer Incentive as submitted under the Affordable Housing Fund Policy. Second by Coburn. AYES: Kachel, Knight, Gerber, Coburn, Kromholz. NOES: None. ABSENT: Singer, Schreiber. Motion passed. Kromholz noted that there would be no action on Whitewater University Innovation Center Lease Agreement with Blue Line Battery, Inc. FUTURE AGENDA ITEMS: 1. Update on the funds controlled by the CDA in the unrestricted Action Fund. 2. Update on the Hale residential property development. 3. Housing Roundtable with property owners of potential development of vacant land in the City. 4. Finance to report on the status of the CDA Loan Portfolio. ADJOURNMENT: Moved by Coburn to Adjourn, seconded by Kachel. Upon unanimous voice vote, Interim Chair Kromholz adjourned the meeting at approximately 7:45 p.m. Respectfully submitted, Bonnie Miller, Recorder Minutes approved March 21, 2024