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HomeMy WebLinkAbout9.16.20 1 REDEVELOPMENT AUTHORITY MEETING MINUTES September 16, 2020 PRESENT: Jason Lasky, Lori Palmeri, Steve Hintz, Susan Panek, Thomas Belter, Archie Stam EXCUSED: Jack Bermingham STAFF: Allen Davis, Executive Director/Community Development Director; Darlene Brandt, Grants Coordinator Chairperson Palmeri called the meeting to order at 4:00pm. Roll call was taken and a quorum declared present. The minutes of August 25, 2020 were approved as distributed. (Belter, Stam) Arena Update City Attorney Lorenson joined the Redevelopment Authority to provide an update regarding the arena. Ms. Lorenson stated that the Fox Valley Pro Basketball (FVPB) reorganization plan was confirmed in the bankruptcy on August 26, 2020. Under the plan, FVPB will continue to operate the arena. The Wisconsin Herd plans to continue to lease it for use for the G-league games. Menominee Nation and FVPB are continuing to negotiate a final agreement for naming rights, so everything remains status quo in those regards. There were no changes to the development agreement with the City as a result of the bankruptcy process and there are two issues going before Council next Tuesday. Ms. Lorenson stated that in terms of outstanding City issues, the City incurred a total of $69,695 pre and post-petition attorney fees for outside counsel related to both the developer’s defaults as well as monitoring and responding to the bankruptcy proceeding. The proposed settlement agreement provides for payment of all the pre-petition attorney fees and a portion of the post- petition attorney fees. Because it was a more complex bankruptcy case than typically handled through her office, they hired outside counsel and they monitored things and responded to certain filings in the case in the same way any other creditor would. The attorney fees were not going to be compensable under the terms of the development agreement. The development agreement provided the City could recoup its costs related to enforcing default. The agreement they reached, which is going to council for approval next Tuesday, is for a total of $42,412.25 out of the total $69,695. Roughly 61% of the attorney fees will be paid under this settlement. Ms. Lorenson stated that the other issue going to Council next Tuesday relates to a financing under the bankruptcy. A consortium of lenders including Two Willows, who were involved previously, has agreed to lend FVPB about $2,200,000 as exit financing and they are requesting certain assurances from the City in connection with that financing. Most of them are simply facts or their 2 restatements of things in the development agreement. The one that was a little bit up in the air until the attorney fees issue is settled relates to default under the development agreement. Currently because the City claims the attorney fees, there is a default. If Council approves the settlement, it that would correct that default and that’s the last remaining default under the development agreement at this time. If they accept the development agreement, then they would also authorize us to make those representations in connection with that exit financing. Ms. Lorenson stated that the final issue is the status of the real estate transfer. They are working with DNR to obtain the final VPLE paperwork. They had discussed a “no poke” restrictive covenants previously, meaning FVPB is restricted from going in while the City still has obligations under the development agreement to excavate or look for additional environmental issues that might become the responsibility of the City. The “no-poke” provision was actually included in the orders issued by the bankruptcy court to the debtor. As soon as they receive the VPLE, they will be in a position to transfer the property. She is hoping to have completed the paperwork and the closing in the next two months, but she is asking that RDA not hold her to that timeline. Mr. Belter asked for confirmation that they sold off the future TIF proceeds for TIF bond financing, so in no way will we ever pay the TIF bond holder if we don’t receive property tax payment from FVPB. Ms. Lorenson replied affirmatively, clarifying that it is actually collateral financing. They have not asked for any agreements in relation to splitting those. The way the assurances for the financing are right now is that Silver Anvil LLC would have to actually step in and assume the rights and responsibilities under the agreement at this point so it’s not really separated. Mr. Belter asked if there was a collateral assignment on the TIF receipt. Ms. Lorenson replied that they are not separating the TIF payment from the responsibilities of the development agreement, which at this point is basically payment of the taxes. Mr. Belter asked if the G-League has pushed their schedule into a future month because he does not think they will start in November. Ms. Lorenson replied that it had not been settled the last time she checked. Mr. Laskey asked if the G-League leasing the space from them is in their current contract or if they will need to renegotiate their contract to move forward. Ms. Lorernson replied that she does not know if they renegotiated any of the items, but they are planning to lease it and use that facility. Mr. Belter stated that it was a seven year lease. He assumes they will maintain the existing lease, but they’re in default of that. Mr. Lasky asked how bankruptcy would play into that. 3 Mr. Belter replied that they could call a default and walk away from the lease. Ms. Lorenson stated that Mayor Palmeri or Mr. Davis could provide the next update to the RDA. The Redevelopment Authority thanked City Attorney Lorenson for her time. Public Hearing: 2019 Consolidated Annual Performance and Evaluation Report (CAPER) No one appeared for the public hearing. Mr. Lasky asked if a lack of public participation was common or if it was due to COVID-19. Ms. Brandt replied that it was common. Mr. Belter asked where the public would find this. Ms. Brandt replied that it was advertised in the Oshkosh Northwestern and that the plan is available on the City’s website and in the Community Development office. Ms. Palmeri asked if there was also an Oshkosh Herald article that referenced this. Ms. Brandt replied that the Herald was sent a copy of the availability, but she does not know if there was an article. She does not remember seeing one. Mr. Lasky asked if it would make more sense to utilize the Herald because it is distributed to every residence in the City and the Northwestern is subscription only. Ms. Panek asked if it was based on circulation. Ms. Brandt replied that the City has identified the Oshkosh Northwestern as its official publication news agency. Ms. Palmeri stated that as of a couple of months ago, the Herald was seeking to meet whatever the criteria is to be considered a legal publication of record. She is not sure where they are in that process, but she thinks there is a certain milestone that they have to reach in order to be allowed to be that designee. Ms. Panek stated that she did not know if it had to do with the number of subscribers opposed to the number of residences that it is delivered to. Mr. Davis stated that it might have to do with how frequently it is published. Mr. Hintz asked if the CAPER was contracted or completed in-house. 4 Mr. Davis stated that City staff prepared this, primarily Ms. Brandt. Ms. Palmeri asked if Ms. Brandt would like to cover some of the highlights of the report. Ms. Brandt stated that Mr. Hintz found a typo, which will need to be corrected. He also pointed out that a total of 49,000 people served seemed high, but that is how the public service agencies report. It is not based on one-time service, every time someone enters a facility is counted as another person. Mr. Davis stated that a lot of those numbers are based on the food bank participation. Ms. Brandt replied that it is any of the public service agencies. Ms. Panek asked for confirmation that someone visiting three or four different agencies receives credit at each agency, so it is not an unduplicated count. Ms. Brandt replied affirmatively. Mr. Hintz stated that’s what he is assuming because to say that service was provided to 49,000 people is a lot of people. It must be a duplicated count. Ms. Palmeri asked for confirmation that it is the number of visits, not the number of families assisted. Ms. Brandt replied affirmatively. Mr. Hintz stated that if he were somebody at HUD, his credibility might be in question if he reported that 49,000 people received service in a city where the total population is roughly 66,000. Ms. Panek replied that if HUD allows them to count that way, which they do, then it is their issue. It shows the number of visits, which is still a lot of people who are in need. Ms. Brandt stated that the food bank, for example, served 35,000, but that’s around half the population of Oshkosh. It is based on the number of people per visit. Mr. Hintz asked if one person could usually chalk up 52 visits. Ms. Brandt replied affirmatively. Mr. Lasky asked if it also included the same household, if, for example, he brought someone from his household with him. Ms. Brandt replied that the same household is counted as one. 5 Ms. Palmeri asked for confirmation that if those dollars are spread over twelve public service agencies, if one household sought services from multiple agencies, then it could be triplicated or quadruplicated. Ms. Brandt replied affirmatively. Mr. Hintz stated that using the example of the food bank at 35,000 would explain a lot of that number. Ms. Brandt stated that based on the 2019 allocation of roughly $835,000 and program income of $211,000, they had $1,046,000 to spend. $823,000 was spent in the 2019 program year and any remaining funds are spent in the following program year. Mr. Lasky asked if the remainder reduces the funding for the following program year. Ms. Brandt replied that it does not. Mr. Davis stated that the program year for federal government is not our calendar year budget, which has always been a problem for tracking. Ms. Palmeri asked what the program year is. Ms. Brandt replied that it is May 1st through April 30th. If the funds were not spent due to agencies being closed due to COVID-19, she will gladly allow carryover if the agency requests to carryover past the April 30th deadline. Ms. Palmeri asked if this included any additional CDBG dollars and if we received the rules on how those dollars could be used. Mr. Davis replied that we received draft rules a week or two ago and we are hoping to receive final rules within a month. Ms. Palmeri asked if that would be a separate report. Ms. Brandt replied that it would be a separate report, funding, and documentation. Ms. Palmeri asked if the housing and down payment assistance amount of $10,000 was $5,000 each. Ms. Brandt replied that CDBG provides up to $10,000 in closing cost assistance and only one closing was accomplished in the past program year. Ms. Palmeri asked if the Sold on Oshkosh dollars were separate from this. Ms. Brandt replied affirmatively. 6 Mr. Davis stated that there we more closings under Sold on Oshkosh with HNI funding. Ms. Panek asked about the percent of public services. Ms. Brandt replied that it is a maximum of 15%. Ms. Panek estimated that the percentage was 10% or 13%. Ms. Brandt stated that it is 10.75%. Ms. Palmeri asked if this was the first year we did not use the full available amount. Ms. Brandt replied that it always varies based on carryover from the previous year. She has to make sure she does not exceed the 15% based on prior year payments because if she exceeds 15% there will be a finding with HUD. Mr. Davis stated that we had just released the applications for the next round. Ms. Brandt stated that they are due this week. Ms. Palmeri asked if the applications are for 2020. Ms. Brandt replied affirmatively, noting that they are retroactive to May 1st. Ms. Palmeri asked when the second public hearing is scheduled. Ms. Brandt replied that it is scheduled for 5:00pm next Thursday at City Hall. It does not go to Council and the report will be submitted to HUD on September 29th. Community Gardens Update Mr. Davis stated that staff has been working on the draft RFP over the last few weeks. He welcomes any kind of comments that the RDA might have either tonight or in the next week or so, but he’d like to send this out in the very near future so that they can get some respondents this fall and RDA can act on them this winter so that they can begin next spring. Probably the most important thing to note is that raised beds are required for all potential gardens. Ms. Palmeri asked if the raised beds need to be lined. Mr. Davis replied that he does not remember seeing lined raised beds. Ms. Palmeri replied that she thought that when they did the Jefferson Street garden, they needed to be lined with a certain thickness of plastic for lead. 7 Mr. Davis replied that that sounded familiar because lead is a common contaminant in Oshkosh. Mr. Stam thanked staff for putting it together. He thinks it will be a nice opportunity to gauge interest. Ms. Palmeri asked where this would be circulated, advertised, or announced. Mr. Davis replied it would go to all of the food groups they are aware of, neighborhood associations, public service agencies or pantries, the new food co-op, and the general public. They typically use media services for some kind of press release or posting on social media. Ms. Palmeri asked if we would extend an invitation to the Oshkosh Herald for a story. Mr. Davis replied affirmatively. Mr. Lasky asked if the RFP would expire, or if we could add or remove properties from the RFP as needed. Mr. Davis replied that it is completely up to the RDA at this point. Right now he thinks there would be some kind of term for a lease, but they’re waiting for proposals to come through. Mr. Lasky replied that he understood that part. He is wondering if the RFP is only valid for a certain amount of time. Mr. Davis replied that they will keep it open until all of the spaces have been used. Mr. Lasky replied that that’s great because if someone misses a notice, they can still be directed to this process. Ms. Palmeri asked if Oshkosh Media could maybe have this for one of their episodes or interviews because this might be more than a quick sound bite type of thing. Mr. Davis replied that he would certainly ask them. Ms. Panek asked if there has been any connection with the Master Gardener program. Ms. Palmeri replied that they did work with the Jefferson Street garden. There were not enough volunteers for her neighborhood several years back. It depends on how many people are active on getting in their hours for their certification, so that might be another one to add to the circulation list. Potentially UW-Extension as well. Ms. Panek replied that Master Gardeners is through Extension. She thought that ADVOCAP was doing some garden plots years ago, but she is not sure if they are any longer. Mr. Belter stated that by the time you buy the wood and it soil, it is quite an endeavor to do this. 8 Ms. Palmeri replied that it was about $3,000 for 56 raised beds and a coordinator fee for the Jefferson Street garden. Mr. Lasky asked if there was a grant interested parties could apply for to offset costs. Ms. Brandt replied that there are Great Neighborhoods funds through the City that many neighborhood associations utilize. Mr. Lasky asked if you needed to be a neighborhood association to apply. Mr. Davis replied affirmatively. Mr. Lasky asked how many of the sites are in neighborhoods with existing associations. Mr. Davis replied around two or three associations. Ms. Palmeri stated that Habitat for Humanity also indicated they may have some property that they may be able to add to the offerings. Ms. Brandt stated that Habitat for Humanity has a piece of property that has environmental issues that they cannot build on. She has recommended that they offer it as a community garden. She does not know if they have followed through. Ms. Palmeri thanked staff for putting the RFP together for individuals and groups in the community who have expressed interest. Executive Director’s Report Mr. Davis provided updates to the RDA. Mr. Belter made a motion for the Redevelopment Authority to convene into Closed Session pursuant to Section 19.85(1)(G) of the Wisconsin State Statutes to discuss the purchase of 413 Scott Avenue in the City of Oshkosh. Seconded by Ms. Panek. Motion carried 6-0. There was no further discussion. The meeting adjourned at approximately 5:15pm. (Panek, Belter). Respectfully Submitted, Allen Davis Executive Director