Redevelopment Authority Meeting Minutes – June 20, 2017

A meeting of the Redevelopment Authority of the City of Kaukauna was called to order at 8:30 a.m. on Tuesday, June 20, 2017, by Vice Chair VanderWyst.

Members Present: Landreman, McGinnis, Natrop, VanderWyst.

Also Present: Planning Director Jakel, Planning Intern Harp, Applicants.

Absent and Excused: Feldt, Haak, Smith.

• Minutes. A motion to approve the minutes of the March 10, 2017, meeting was made by Landreman, seconded by McGinnis. All members voted aye. Motion carried.
• Executive Session – Kaukauna Coffee and Tea. A motion to adjourn to Executive Session at 8:31 a.m. pursuant to Wisconsin State Statute 19.85(1)(e) to discuss the loan request by Kaukauna Coffee and Tea was made by McGinnis, seconded by Landreman. All members voted aye. Motion carried.
• Open Session – Kaukauna Coffee and Tea. A motion to return to Open Session at 8:45 a.m. was made by McGinnis, seconded by Natrop. All members voted aye. Motion carried. Ms. Zimmerman explained that they participated in the Bazaar After Dark and Electric City Experience events and are considering the possibility of catering. Mr. Natrop asked if the building construction will slow down business. Ms. Zimmerman explained that they anticipate having to close down for four or five days and may use the coffee camper during that time. Mr. VanderWyst asked when the construction would begin. Ms. Zimmerman explained that they were waiting on the financial pieces falling into place but that the sooner they can begin construction – the better. Mr. Jakel asked if the project would result in an enhanced menu. Ms. Zimmerman explained that it would and that she would be baking more items in house. A motion to approve the loan request of $12,000 at 2% for seven years with a second position on the building and equipment and a third position on new money was made by Natrop, seconded by Landreman. All members voted aye. Motion carried.
• Executive Session – 150/152 E 2^nd Street (Clay Eiting). 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 Clay Eiting was made by McGinnis, seconded by Landreman. All members voted aye. Motion carried.
• Open Session – 150/152 E 2^nd Street (Clay Eiting). A motion to return to Open Session at 9:20 a.m. was made by McGinnis, seconded by Natrop. All members voted aye. Motion carried. A motion to approve the loan request in the amount of $150,000 at 2% for 15 years was made by Landreman, seconded by McGinnis. All members voted aye.
• Writing Off Un-Collectible Loan Balances. Mr. Jakel explained that collection efforts will cease on the balance of these two loans based on court-approved bankruptcies. My House Bowling Bar was sold to their primary lender via a sheriff’s sale. There was no surplus so RACK’s outstanding balance was uncollectible. The RACK loan to Toyman Collectibles is essentially made whole as interest payments over the years cover the outstanding balance. Toyman’s PACE loan is still actively being paid by their primary lender. A motion to write off the uncollectible balances for My House Bowling Bar ($89,221.06) and Toyman Collectibles RACK loan ($2,659.74) was made by Landreman, seconded by McGinnis. All members voted aye. Motion carried.
• General Matters. Mr. Landreman asked for an update on the delinquent loans to 5K6, LLC (Rose Simon), Quencher’s Food and Spirits and Plum Hill. Mr. Jakel explained that staff is working internally to determine if a collection service or foreclosure is the best way to proceed – with foreclosure being the likely action on 5K6, LLC and Quencher’s. Personal guarantees on the principals of the Plum Hill loan are the only collateral remaining. Proceeding with the collection options will be a formal agenda item at the next meeting.

There being no further business to be brought before the Authority, a motion to adjourn the meeting at 9:40 a.m. was made by Landreman, seconded by McGinnis. All members voted aye. Motion carried.

Julianne Schroeder

Executive Secretary