TIF #10 Board of Review Meeting Minutes – April 26, 2018

A meeting of the TIF #10 Board of Review was called to order at 11:00 a.m. on Thursday, April 26, 2018, by Planning Director Jakel.

Members Present:

Will Van Rossum, City of Kaukauna – Finance Director

Faith Schiedermayer, Fox Valley Technical College

Bob Schafer, Kaukauna Area School District

Brian Massey, Outagamie County

John Moore – At Large Member

Also Present:

Bob Jakel, City of Kaukauna – Planning Director

Mayor Tony Penterman

• Appointment of At-Large Member. A motion to appoint John Moore as the at-large member was made by Schafer, seconded by Van Rossum. All members voted aye. Motion carried.
• Appointment of Chairperson. A motion to appoint Finance Director Van Rossum as Board Chair was made by Massey, seconded by Schafer. All members voted aye. Motion carried.
• Review of TID No. 10 Project Plan and Boundary. Mr. Jakel explained that this is a difficult property for the City and previous requests for multi-family development were hampered by the lack of job creation and the fact that the projects could likely proceed without TIF financing. Mr. Jakel explained that residential projects require more infrastructure and developer reimbursements while adding additional service responsibilities for the municipality. The project as presented creates a number of difficulties – there is a large area of ground, a relatively high acquisition cost, and significant demolition costs – that could make the project financially infeasible. Mr. Jakel explained that if the project were a commercial development – it would be a no-brainer, as it would generate a higher tax base, job creation, and other financial benefits outside the TIF district. Residential projects may not have any financial impact until far in the future. Mr. Jakel explained that without TIF financing, he is not sure if the project would proceed – it could be considered for low-income or senior housing however there has not been much interest in the site due to the cost. Mr. Jakel also noted that TIF law requires mixed-use traditional designs to include public, commercial, and residential uses all in close proximity. The TIF boundary may need to be revised to include some school district property and retail facilities off Fieldcrest Drive. No additional increment would be collected on the existing residential and commercial properties or from the potential development of vacant lots. Mr. Schafer asked if the developer would proceed without TIF financing. Mr. Jakel explained that it wasn’t likely due to the tight cost estimates. The developer has indicated that they would not proceed at all without the inclusion of two-family units. The Engineering Department would prefer a public street be incorporated in the development. Mr. Jakel explained that previous projects have met with opposition from surrounding residents. Mr. Massey asked for clarification on the TIF costs and payback. Mr. Jakel explained that the $225,000 would be used for demolition and infrastructure and that he anticipates a 7 to 10 year payback with infrastructure or closer to five years if just the demolition. Mr. Massey asked if the City needed additional low-income or senior housing. Mr. Jakel explained that the City did not as market analysis shows existing needs are being met – however, when senior or low-income units are developed, they do fill up. Chairman Van Rossum explained that if a public street is required, those costs will need to be figured in to infrastructure. Mr. Jakel explained that a public hearing on the project will be held before the Plan Commission on Thursday, May 3, 2018. Mr. Massey explained that there are other TIFs in Outagamie County with residential components, however, none completely residential and none with multi-family. Chairman Van Rossum explained that initially going from zero increment was a positive, however, looking into the specifics further brings up additional issues. Mr. Schafer noted that the building has been vacant for a number of years and was previously offered to the School District. Chairman Van Rossum explained that tax credits are tied to the number of years a property is vacant and that previous developers have opted to wait. Mayor Penterman explained that the through street would assist maintenance and emergency access to the development. Mr. Moore explained that he visited with several neighbors and they are in favor of a through street. Mr. Jakel explained that if the developer decides to proceed after the Plan Commission public hearing, the Plan Commission would need to approve a change to the Comprehensive Plan reference as well as rezoning the property. Ms. Schiedermayer suggested that Mr. Jakel contact a TIF specialist for direction on how to proceed.
• Next Meeting. The next meeting has been scheduled for Thursday, September 22^nd at 3:00 p.m. Agendas and background information will be forwarded to Board members.

A motion to temporally adjourn the meeting at 11:30 a.m. and reconvene at a later date was made by Moore, seconded by Schafer. All members voted aye. Motion carried.

Julianne Schroeder, Executive Secretary