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HomeMy WebLinkAbout2-23-17RDA Minutes February 23, 2017 Page 1 REDEVELOPMENT AUTHORITY MINUTES February 23, 2017 PRESENT:Thomas Belter,Steve Cummings,Steve Hintz,Jason Lasky,Archie Stam EXCUSED:Doug Person STAFF:Allen Davis, Executive Director/Community Development Director;Darlene Brandt, Grants Coordinator;Andrea Flanigan, Recording Secretary Chairman Cummings called the meeting to order at 4:00 pm. Roll call was taken and a quorum declared present. The minutes of February 14, 2017 were approved as distributed (Belter/ Lasky). Res.17-05 Approve Developer Agreement with Fox Valley Pro Basketball, Inc.; Approve Land Disposition –Proposed Multi-Purpose Arena at 1212 South Main Street Motion by Hintz to move Res.17-05 Seconded by Belter Mr. Davis stated the development agreement is the next step in the development of the arena. The development agreement is unique in that the developer is fronting all of the costs for the project, both public and private improvements. The developer will pay the City for the improvements that will take place this summer. The TIF plan proposes to reimburse the developer for the public improvement costs and the extraordinary development costs on the site since it is in need of remediation. The developer’s responsibility will be to construct an arena with a minimum value of $18 million dollars for the first seven years. The City will then pay back the developer for the improvements through a Pay-go TIF. Mr. Hintz inquired if the City grant portion is 100% of the tax increment. Mr. Davis stated a portion of that money goes towards administration of the grant and some will do towards the SBA liens. Mr. Hintz stated essentially the City is waving taxes on the property for the life of the TIF. Mr. Davis stated it will be about 18 years assuming all of the costs are spent on the public facility and the site development. The City is hoping to reduce those project costs on the public facility side. Mr. Stam inquired what happens after seven years. Are the terms re-negotiated at that point? RDA Minutes February 23, 2017 Page 2 Mr. Davis stated the value will be determined by the City Assessor. For planning purposes and the developer’s own pro forma, he wanted to have a solid projection for the first seven years. Mr. Belter inquired what happens to the TIF value of the arena after 7 years falls below the $18 million value. Mr. Davis stated they have run different scenarios and the TIF can be paid off if the arena’s value is $10 million with 6 years left in the TIF. Mr. Belter inquired what due diligence has been done on the financial contribution of the developer. Mr. Davis stated the developer must provide proof of funds for the public facility but the City is not requiring the developer to provide information on how the private side of the development is being funded. Mr. Stam inquired if there are issues with the ownership of the land. Mr. Davis responded the City will need clear title on the property before it can be leased to the developer. Once the City obtains a Certificate of Completion from Wisconsin DNR the land can be sold to the developer. Mr. Belter inquired why the legal description of the property is for Lots 1 and 2 in the development agreement and will the City have control of Lot 1 once the development agreement is signed. Mr. Davis stated the City would not take control of Lot 1 until the buildings are down. The lease is structured so that the lease is only for Lot 2 until the City has ownership of Lot 1. Mr. Belter stated the legal description for Lot 1 and 2 is in the development agreement so it would trigger both pieces of land when the development agreement is dated. Mr. Davis stated he would discuss the legal descriptions in the development agreement with the City Attorney. Mr. Lasky inquired if once the developer has ownership, will the issues of the lots be cleared up. Mr. Davis responded once the City has possession of both lots, the lots will be combined into one lot and sold for $1. The City is retaining some right of way along Main Street for a wider sidewalk. Mr. Belter inquired how long the Buck’s have a lease. Mr. Davis stated the lease is for six to seven years with an option to extend the lease. Mr. Belter stated the site looked flat and graded and ready to be built. The item was called. Motion carried 5-0. RDA Minutes February 23, 2017 Page 3 There was no further discussion.The meeting adjourned at approximately 1:15 PM. (Stam/Lasky) Respectfully submitted, Allen Davis Executive Director