Redevelopment Authority Meeting Minutes – March 10, 2017

REDEVELOPMENT AUTHORITY OF THE CITY OF KAUKAUNA

A meeting of the Redevelopment Authority of the City of Kaukauna was called to order at 8:30 a.m. on Friday, March 10, 2017, by Chairman Haak.

Members Present: Haak, Feldt, McGinnis, Natrop, VanderWyst.

Also Present: Planning Director Jakel, Mayor Rosin, Applicants, Media.

Absent and Excused: Landreman, Smith.

Minutes. A motion to approve the minutes of the September 29, 2016, meeting was made by McGinnis, seconded by Natrop. All members voted aye. Motion carried.

Loan Request for Kaukauna Coffee and Tea. Mr. Jakel explained that RACK would be asked to participate in the project for equipment only to avoid Davis Bacon requirements and the original loan package was restructured to include additional funds from Outagamie County’s RLF program which is funded through excess TIF increment. Ms. Zimmerman explained that she took advantage of the opportunity to purchase high-quality used items (ice machine, display case, refrigerator and an espresso machine) as they were available and used a credit card to fund the purchases. Her plans are to sell or donate the existing equipment anticipated to bring in approximately $1,500. Chairman Haak asked how the equipment purchase figured into the project budget. Ms. Zimmerman explained that the purchases were included as part of the budget with some additional pieces purchased and paid for by the applicant. Mr. Feldt asked what the existing PACE loan was used for. Ms. Zimmerman explained that it was for a new refrigerator and upgraded lighting. Mr. Natrop asked about the financing for the construction portion of the project. Ms. Zimmerman explained that it was an SBA loan through Business Lending Group with additional funds from Outagamie County. The project includes interior remodeling and upgrading, new plumbing and electrical services and upgraded equipment. Chairman Haak asked about the county’s loan. Mr. Jakel explained that it will be approximately 25% of the project cost. Chairman Haak asked about existing loans against the property. Ms. Zimmerman explained that she currently has loans with Business Lending Group and RACK. Mr. Natrop asked about the proposed loan terms. Mr. Jakel suggested a 2% interest rate for seven years for equipment only.

Executive Session – Kaukauna Coffee and Tea. A motion to adjourn to Executive Session at 8:50 a.m. pursuant to Wisconsin State Statute 19.85(1)(e) to discuss the loan request by Kaukauna Coffee and Tea was made by Feldt, seconded by McGinnis. All members voted aye. Motion carried.

Chairman Haak thanked Mr. Jakel and Mayor Rosin for their work on securing the Wal-Mart project for Commerce Crossing and the benefits to the community associated with the development.

There being no further business to be brought before the Authority, a motion to adjourn the meeting at 9:10 a.m. was made by VanderWyst, seconded by Feldt. All members voted aye. Motion carried.

Julianne Schroeder

Executive Secretary