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

Community Development Authority Board of Directors Meeting (In-Person & Virtual) Agenda August 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, August 15, 2024 - 5:30 PM MINUTES CALL TO ORDER: Chair Majkrzak called the meeting to order at 5:30 p.m. ROLL CALL: PRESENT: Greg Majkrzak, Neil Hicks, Thayer Coburn, Jeff Knight, Jon Kachel. ABSENT: Joe Kromholz, Christ Christon. STAFF PRESENT: Taylor Zeinert (Economic Development Director); Bonnie Miller (CDA Administrative Assistant); Rachel Blitch (Finance Director). DECLARATION OF CONFLICT OF INTEREST. Would any Member of the Board wish to declare any known conflict of interest with the items presented on today's CDA Board Agenda? None stated. APPROVAL OF AGENDA Moved by Chair Majkrzak to approve the Agenda as amended to move Item #8 in the Agenda before Item #3; second by Board Member Knight. Roll Call: AYES: Knight, Hicks, Coburn, Kachel, Majkrzak; NOES: None; ABSENT: Kromholz, Christon. HEARING OF CITIZEN COMMENTS. None. APPROVE MINUTES: Moved by Board Member Hicks and seconded by Board Member Kachel to approve the July 18, 2024 CDA Board Meeting Minutes; seconded by Board Member Kachel. Roll Call: AYES: Hicks, Kachel, Coburn, Knight, Majkrzak. Roll Call: AYES: Hicks, Kachel, Coburn, Knight, Majkrzak. NOES: None. ABSENT: Kromholz, Christon. FINANCIAL STATEMENTS: Moved by Board Member Knight to approve the Financial Statements for period ending July 31, 2024; second by Board Member Hicks. Roll Call: AYES: Hicks, Kachel, Coburn, Knight, Majrzak. NOES: None. ABSENT: Kromholz, Christon. ACTION ITEMS 8. Staff Update Regarding Modular Home Introduction (NRS Real Estate). EDD Zeinert introduced Louis Gouletas of NRS Real Estate and Paul Fitzpatrick of 11 East Partners LLC who presented a modular homes concept consisting of single-family 2, 3 and 4-bedroom modular homes. The homes would foundation constructed with no basements and no Community Development Authority Board of Directors Meeting (In-Person & Virtual) Agenda August 15, 2024 Page 2 garage specifically designed to be within reach of Whitewater’s demographic with a variety of price ranges and options. 3. Discussion and possible action regarding the 108 West Main Street Property. ED Director Zeinert provided an update regarding the status of replacement of the roof at 108 West Main Street property owned by the CDA and requested direction to go ahead with the proposal from Badgerland Roofing. Moved by Board Member Hicks to approve the repair to 108 W. Main St. not to exceed $21,000; seconded by Majkrzak. Roll Call: AYES: Hicks, Majkrzak. NOES: Knight, Coburn, Kachel. ABSENT: Christon, Kromholz. Motion failed. Moved by Coburn to approve the Badgerland proposal at $19,990 for the repair of the roof at 108 W. Main Street; seconded by Majkrzak. Roll Call: AYES: Majkrzak, Hicks, Coburn; Noes: Knight, Kachel. ABSENT: Christon, Kromholz. Motion passed. 4. Discussion and Possible Action Regarding Potential WindUp 2025. EDD Zeinert requested feedback from the Board regarding consideration of proceeding with WindUp 2025. After lengthy discussion, the preference of the Board would be to conduct WindUp 2025 with two separate categories consisting of start-up businesses and existing businesses. Kachel would like to see pictures (inside and out) of the building potentially being considered for improvement by the winners. EDD Zeinert stated that she would like to start preparing for WindUp 2025 at least three (3) months in advance. Board Member Hicks would like to skip a year and proceed with a WindUp in 2026. 5. Consideration and possible action with regard to Affordable Housing Fund Down Payment Assistance Loan Application (DPA) No. 2024-002 for the purchase of 371 S. Janesville Street. EDD Zeinert provided background information with regard to the Affordable Housing Fund Program itself and to this application specifically. Moved by Moved by Majkrzak to approve DPA Loan Application No. 2024-002 in the sum of $25,000; seconded by Coburn. Roll Call Vote. AYES: Kachel, Knight, Hicks, Majkrzak, Coburn. NOES: None. ABSENT: Kromholz, Christon. Motion passed. 6. Consideration and possible action with regard to Affordable Housing Fund Down Payment Assistance Loan Application No. 2024-003 for the purchase of 303 South Whiton Street. EDD Zeinert summarized Affordable Housing Fund Down Payment Assistance (DPA) Loan Application No. 2024-003 and recommended approval. Moved by Coburn to approve DPA Loan No. 2024-003; seconded by Majkrzak. Roll Call Vote. AYES: Majkrzak, Hicks, Coburn, Knight, Kachel. NOES: None. ABSENT: Kromholz, Christon. Motion passed. 7. Discussion and possible action with regard to status of CDA Loan to Recruitchute, Inc. in the amount of $50,000.00. Finance Director Blitch provided a summary of the background and status of the $50,000 Capital Catalyst Loan to Recruitchute, Inc. Director Blitch reported that the business had been dissolved in 2021 and recommended that the loan be written off. Moved by Hicks to write off the $50,000 Capital Catalyst Loan to Recruitchute, Inc.; seconded by Knight. Roll Call Vote. AYES: Majkrzak, Hicks, Coburn, Knight, Kachel. NOES: None. ABSENT: Kromholz, Christon. Motion passed. CONSIDERATIONS / DISCUSSIONS / REPORTS Community Development Authority Board of Directors Meeting (In-Person & Virtual) Agenda August 15, 2024 Page 3 9. Staff Update Regarding Status of Scanalytics Loan and Slipstream Loan. Finance Director Blitch provided background facts and a status update regarding CDA loan to Scanalytics and CDA loan to Slipstream. Director Blitch reported that both businesses are still operational and recommended referral of both loans to CDA legal counsel for collection. Moved by Knight to refer both accounts to legal counsel for collection; seconded by Coburn. Roll Call Vote. AYES: Hicks, Kachel, Coburn, Knight, Majkrzak. NOES: None. ABSENT: Kromholz, Christon. Motion passed. 10. Staff Update Regarding Legal Action Against Fine Food Arts d/b/a The Black Sheep. EDD Zeinert provided background information with regard to the status of the 2021 delinquent CDA loan in the sum of $30,000 to Fine Food Arts d/b/a The Black Sheep and updated the Board with regard to a proposal by Dan Rodriguez to purchase the remaining assets at 210 W. Whitewater Street by means of an Assignment and Assumption Agreement to be entered into by and between Jay Stinson and Dan Rodriguez. EDD Zeinert referred the matter to CDA Attorney Manthe for his review and recommendation. Staff conducted a walk-through with Mr. Rodriguez to identify and create a listing of the assets remaining. This item will be brought back to the Board for update and direction. 11. Economic Development Director Report. EDD Zeinert updated the Board regarding the upcoming Food Truck Festival and the status of activities by City Staff at the Innovation Center regarding transition of management tasks from the University to the CDA. EXECUTIVE SESSION. Moved by Coburn to 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. Item to be discussed: Discussion and possible action regarding BaristaCats Cafe allocation of funds under the WindUp Program. Motion seconded by Board Member Coburn. AYES: Majkrzak, Coburn, Knight, Kachel, Hicks. NOES: None. ABSENT: Kromholz, Christon. Motion passed. RECONVENE TO OPEN SESSION Reconvene to Open Session to take action on Closed Session Item. 13. Possible action regarding BaristaCats Cafe allocation of funds under the WindUp Program. No action taken. FUTURE AGENDA ITEMS 14. Staff Update Regarding status of Inventalator Loan f/k/a Ideawake (Finance Director Blitch) 15. Staff Report- How to do a TIF Calculation 16. Cost of Amending a TIF District 17. Updates to Rules of Procedure Handbook 18. Updates to Revolving Loan Program 19. Updates to Facade Loan Program Community Development Authority Board of Directors Meeting (In-Person & Virtual) Agenda August 15, 2024 Page 4 ADJOURNMENT. Moved by Knight to adjourn; seconded by Kachel. Motion passed by unanimous voice vote. Chairperson Majkrzak adjourned the meeting at 7:19 p.m. Respectfully submitted, Bonnie Miller, Recorder Minutes approved at 09/19/2024 CDA Board Meeting.