Redevelopment Authority Meeting Minutes – April 10, 2018

Posted on Apr 13, 2018 by admin_post

A meeting of the Redevelopment Authority of the City of Kaukauna was called to order at 9:00 a.m. on Tuesday, April 10, 2018, by Chairman Haak.

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

Also Present: Planning Director Jakel, Mayor Rosin, Planning/Engineering Technician Holmes, Applicants Troy and Amy Zacharias of Action Appraisers and Consulting.

Absent and Excused: Landreman.

Minutes. A motion to approve the minutes of the February 13, 2018, meeting was made by McGinnis, seconded by VanderWyst. All members voted aye. Motion carried.
Loan Request – Action Appraisers and Consultants. Mr. Jakel explained that the applicants are looking to purchase property at 117 West Third Street for office space and company vehicle parking. There is an existing RACK loan with the current owner, Rose Simon Kazik that is substantially delinquent. This loan will be paid out in full with the sale of the property. Mr. Jakel suggested loan terms of $24,000 at 2% for six years. Mr. Zacharias explained that Action Appraisers and Consultants primarily deal in municipal assessment work for tax purposes. They are currently renting space on the City’s north side but are looking for something more permanent. The business does not require a lot of signage or exposure and some interior renovation and outdoor parking improvements are planned. They currently employ six staff members and are looking to fill a position for a full time field person. One additional admin staff member will eventually be hired. Ms. Smith asked about projected renovation costs. Mr. Zacharias estimated them at around $10,000 for the interior work and parking improvements with additional costs for windows and air conditioning down the road. Mr. McGinnis asked if the building was currently occupied. Mr. Zacharias explained that the building is vacant but was previously used as a residence. Ms. Zacharias explained that the interior appeared to have been recently updated. Mr. VanderWyst asked if the applicants intended to utilize the entire building. Ms. Zacharias explained that their current facility is 1,400 square feet and that this building is 2,500 square feet. They intend to use the entire space with room to expand.
Executive Session – Action Appraisers and Consultants. A motion to adjourn to Executive Session at 9:15 a.m. pursuant to Wisconsin State Statute 19.85(1)(e) to discuss the loan request by Action Appraisers and Consultants was made by Feldt, seconded by VanderWyst. All members voted aye. Motion carried.
Open Session – Action Appraisers and Consultants. A motion to return to Open Session at 9:25 a.m. was made by McGinnis, seconded by Natrop. All members voted aye. Motion carried. A motion to approve the loan request of $24,000 at 2.0% for six years contingent on securing personal guarantees for Troy and Amy Zacharias, a second mortgage position behind Bank of Kaukauna, and the applicant paying all RACK-associated closing costs was made by Feldt, seconded Natrop. All members voted aye. Motion carried.
General Matters. Mr. Jakel explained that the closing of a recently approved loan to Nobility Reigns has been delayed due to new SBA regulations which created a larger gap in financing. Wells Fargo is working with Mr. Grubofski to secure additional financing through CAP Services. Staff received an invoice from McCarty Law that must be paid and will charge the amount back to Mr. Grubofski.

Ms. Smith asked about an approved loan to Craft Specialties. Mr. Jakel explained that they were not able to come to terms with the seller of the new location. Their current facility was recently purchased and the new owner is making necessary improvements and working with them on a lease. The applicants are still looking for a building but maintaining their business at the existing location for now. Staff was able to postpone the preparation of legal documents so that no administrative charges were incurred.

Mr. Haak asked about the status of pursuing personal guarantees against the owners of the former Plum Hill site. Mr. Jakel explained that the issue was discussed with RACK’s attorneys and he will touch base with them on an update.

Mr. Jakel explained that foreclosure procedures have been initiated on the Quencher’s Food and Spirits site and that he has received two separate inquiries on the building.

Mr. Haak congratulated Mayor Rosin on his retirement and thanked him for his years of service and his support of RACK throughout the years as an Authority member, Council member and Mayor.

There being no further business to be brought before the Authority, a motion to adjourn the meeting at 9:30 a.m. was made by Smith, seconded by VanderWyst. All members voted aye. Motion carried.

Julianne Schroeder

Executive Secretary