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HomeMy WebLinkAbout06.16.21 1 REDEVELOPMENT AUTHORITY MEETING MINUTES June 16, 2021 PRESENT: Lori Palmeri, Steve Hintz, Susan Panek, Thomas Belter, Archie Stam, Jack Bermingham EXCUSED: Jason Lasky STAFF: Allen Davis, Executive Director/Community Development Director; Mark Lyons, Planning Services Manager; Kelly Nieforth, Economic Development Services Manager; Sean Fitzgerald; Economic Development Specialist Chairperson Palmeri called the meeting to order at 4:03pm. Roll call was taken and a quorum declared present. The minutes and closed session minutes of May 19, 2021 were approved as distributed. (Belter, Stam) Years of Service Award Mr. Belter presented Mr. Hintz with a well-deserved award for fifteen years of service as a Redevelopment Authority member, noting that Mr. Hintz has served the City in various capacities for much more than fifteen years. Mr. Hintz expressed that he was surprised by the award and thanked the RDA. Public Input for 43 E. 7th Ave Proposals Mr. Davis stated that staff worked with Media Services to have the proposals posted for public input on the City website and social media. A Polco survey was also distributed for public input, but he is not sure when it closes. 43 E. 7th Ave Proposal Updates & 43 E. 7th Ave Q&A Tadych Investment Partners Mr. Jason Tadych of Tadych Investment Partners stated that their proposal remains unchanged and they remain excited about bringing a for-ownership lower density project to the waterfront in Oshkosh. They are working closely with a local real estate brokerage group that is very confident in the market’s ability to support a project of the magnitude they presented. One of the follow up questions was if they would be willing to partner with another developer given that their site does not encumber the entire property. The answer to that is a resounding yes, provided they can come up with a reasonable allocation of the land and infrastructure and address how they might work to benefit both projects. They have a very open mind on that and would welcome the opportunity to 2 meld their project in to a larger more comprehensive project and share in some of the expertise other developers are bringing to the table. Mr. Belter asked where else they have had big success other than Green Bay. Mr. Tadych replied that they have projects in Appleton and Neenah currently. Mr. Belter asked if they have fixed price contracts for all of their construction costs. Mr. Tadych replied affirmatively. Mr. Hintz asked if Mr. Tadych asked if he could speak to the research related to the sale prices they identified. Mr. Tadych replied that they are projecting based on their project in De Pere and their proposed project is a little smaller in square footage. They are doing their best to translate square footage from a prior project based on today’s construction costs. Part of the beauty of the project is that they will know very quickly into the project whether those numbers are achievable. One of the first things they will do is put the plan in front of a handful of people they already know are interested in the units. They will know within 90-120 days. Ms. Palmeri asked if they had enough people inquire specifically about this project that they are confident in their ability to pre-sell at least 50% of the units. Mr. Grybowski replied that they have not gotten that far, but they know a lot of people are signaling that they would like something like this. Red Earth LLC Mr. Jake Buswell of Red Earth LLC stated that they added 15,000 square feet of commercial space along Main Street as well as on-street parking. The added commercial space does not jeopardize the amount of units or underground parking. They are open to discussing other parking options for the commercial space if selected. They know the City wants to see diversity in housing projects, so they are now offering a minimum of 12 condo units in phases one and two. One of the biggest differences with their group is that they have moved contaminated soils before and they are not asking for a turnkey site. The majority of the soils they pull out for the foundation will be used on the site beneath the parking and other areas. They are not asking the City to mitigate everything. Ms. Panek joined the meeting at 4:14pm. Mr. Hintz asked if Mr. Buswell could speak to any advantages or disadvantages with a four story building versus a three story building. Mr. Buswell replied that they have underground parking so the concrete is divided up amongst the units and helps reduce the cost per unit. It also drives the tax increment that they will be able to 3 create. The condos plus the commercial space is not in the valuation right now, but they expect it to increase to around $40,000,000 by adding those amounts. Mr. Stam asked if the proposal includes any boat docks. Mr. Kevin Burow replied that they did not propose any boat docks, but they would be willing to add them as part of the development agreement negotiations. Chet Wesenberg, Timothy Hess, Andy Dumke, Kip Golden, Molly & Brett Hildebrandt Mr. Timothy Hess stated that RDA had questions at the last meeting about the three separate LLCs. They had conversations with all three entities and an attorney and determined that it will be easy enough for them to come up with a master LLC. He provided updated financials to provide clarification regarding the funding sources. Mr. Hess stated that they have also added an outdoor sculpture gallery and would use TIF dollars to extend the electrical along the various paths. They think they can make this happen and have talked with interested artists in the area. Ms. Palmeri asked which side of the Riverwalk the gallery would be located on. Mr. Hess replied that some sculptures would be on the Riverwalk and some would be on the private land. Mr. Belter stated that they call the architecture stark. He asked if there is a way to make it more attractive and if Plan Commission would need to approve that. Mr. Davis replied that it would require Plan Commission approval. Mr. Chet Wesenberg replied that the market will help determine that, but they are confident it will be well-received. They focused a lot on the architecture and not the landscaping, but the landscaping will help to soften the exterior spaces. Mr. Hintz stated that they have $5,500,000 in partner equity and asked if the remainder is bank financing. Mr. Hess replied that the primary financing is the bank financing and the mixed-used guys tend to use PACE. What they have seems to make sense with what they know about construction costs right now. They feel comfortable with the numbers. Ms. Palmeri asked how the Smith School is going. Mr. Wesenberg replied that the prices were higher than expected and they are applying for low income tax credits. They will start construction in late August or early September. Alexander & Bishop Real Estate Capital Markets, LLC 4 Mr. Peter Jungbacker stated that there are a few amendments. They separated the commercial building on South Main Street because there is an interceptor underneath 8th Street that needs to have access. They added a floor to each of the two buildings and added some additional apartments. The height of the interior of the 36-unit buildings remains at three stories. They still have the townhouses, but they’ve split them apart to create a view line into the interior of the site. They added 22 more units and underground parking. They have a strong commitment for sustainability and this will be a LEED-certified building with PACE participation. They have a track record in the community with well-maintained and well-managed projects that have been owned for several generations. Their goal for this project is to make it an intergenerational core portfolio asset for them that will be locally owned and managed and have increment rents recycled back into the community. They don’t feel that this project has to be all of their project. He has discussed this with Tadych Investment Partners. There is a strong and compelling argument to bifurcate developer participation and take a test of the market with a developer who has a proven track record with for-sale housing. He has seen the project in the Green Bay market and it would create an opportunity for housing in the community that we don’t have but need to compete with other communities. The townhouses wouldn’t be necessary, but the rest of the houses would be complimentary to the neighborhood. They tend to go high-end with rents in the range of $1.60 or $1.70 per square foot, but they are amenity rich and designed to capture residents they are now losing to other communities. T. Wall Enterprises LLC Mr. Jake Bunz stated that they have one minor change to their site plan that has a major impact. They revisited the key goals of the Sawdust District Master Plan and the RFP itself. A lot of the verbiage in both of those plans talked about re-connectivity and opening it up to the river. With that in mind, they removed the fence enclosing the buildings that was originally proposed. They’ve activated South Main Street, but they also want the people using the shops and the restaurant to work their way towards the Riverwalk and the park and use the greenspace. They want to make it a place for both community members and residents to enjoy. They don’t want it to be an exclusionary zone. They want to bring the community into this area and have the residents enjoy their area alongside the community. Mr. Hintz asked about their experience with the longevity of tenants given the different price points. Mr. Bunz replied that all of their projects are market rates, so they have higher rents. In their last three projects, the first units to lease were the most expensive units and they were leased out to older folks looking to downsize. They’re leasing one or two year leases, but what they’ve seen is that that they continually resign because they like the area. They build a community, not just an apartment building and they can retain the residents. Mr. Stam asked if they are proposing underground parking. Mr. Bunz replied that it is proposed under all three buildings. 5 Motion by Hintz to re-order the agenda to move the American Rescue Plan (ARPA) Project Recommendations and Executive Director’s Report before convening into Closed Session. Seconded by Panek. American Rescue Plan Act (ARPA) Project Recommendations Mr. Davis stated that City Manager Rohloff put together some application forms that are in the process of being distributed to all boards and commissions and the public. Public input sessions have also been scheduled. He asked if they are any specific projects RDA would like to submit for ARPA funds. Mr. Stam asked how much money the City received and when the deadline is. Mr. Davis replied that they City will receive a total of $20,000,000. Ms. Palmeri replied that they have until 2024 to spend the money. Mr. Hintz asked about the range of the projects. Ms. Palmeri replied that there are four categories. Mr. Davis replied that the ARPA legislation was infrastructure related for the most part, but funds could also be spent on COVID-related items. The intent is largely capital type projects because it is one time money. Ms. Palmeri stated that her understanding is that there is a category for direct assistance to households along with public health and economic development, a category for lost revenues, a category for hazard pay for essential workers, and a category for infrastructure limited to water, sewer, and broadband. Mr. Davis stated that the City has their own CIP funding and there might be another infrastructure funding bill passed by the federal government later this year which could help to maximize the impact of those funds in the future. Ms. Panek asked how the application process works. Mr. Davis replied that the forms are included in the packet. Ms. Panek asked if there are guidelines or criteria that comes with the forms. Mr. Davis replied that he does not know if the guidelines are included with the application form. 6 Ms. Palmeri replied that there might be some verbiage in the survey, but there is an application form for citizen or individual recommendations and one for non-profits. In the information sessions there will be a little more explanation provided. Ms. Nieforth stated that these are all on the website. Ms. Palmeri stated that they are also in the City’s newsletter. Mr. Davis stated that Friday, July 2nd is not a hard and fast deadline because some groups will not meet before July 2nd. Mr. Belter asked who the deciding body is. Mr. Davis replied that the City Manager intends to gather the applications and use staff to vet them and then submit them to Council for final approval. Mr. Davis stated that all of the 43 E. 7th Ave proposals assume that the City is going to be putting 9th Avenue in. The 9th Avenue project is in the CIP, but it is not funded. It is something that the City and the RDA will have to deal with for any project. Ms. Palmeri added that they’re not real clear if streets can be put into the ARPA. Mr. Davis replied that they’re looking at that. He gets the impression that they think they can, but he is not making that call. Ms. Palmeri replied that Finance and the City Manager will have to make some recommendations there. Executive Director’s Report Mr. Davis stated that he submitted his letter of retirement and his last day with the City will be July 9th. He said that it has been an honor working with the RDA on a lot of neat projects and that Ms. Nieforth will be serving as the Interim Community Development Director throughout the recruitment process. The RDA congratulated Mr. Davis on his retirement and thanked him for the work he has done for the City. Mr. Belter made a motion for the Redevelopment Authority to convene into Closed Session to discuss bargaining options, strategy, parameters, and terms related to the negotiation of an agreement for the redevelopment of 43 E. 7th Avenue pursuant to Section 19.85(1)(e) of the Wisconsin State Statutes where competitive bargaining reasons require a closed session. Seconded by Stam. 7 There was no further discussion. The meeting adjourned at approximately 4:50pm. (Belter, Stam) Respectfully Submitted, Allen Davis Executive Director