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City of Kaukauna

Redevelopment Authority Meeting Minutes – June 11, 2018

Posted on Jun 11, 2018 by

A meeting of the Redevelopment Authority of the City of Kaukauna was called to order at 9:00 a.m. on Monday, June 11, 2018, by Vice Chairman VanderWyst.

Members Present: Feldt, Landreman, McGinnis, VanderWyst.

Also Present: Planning Director Jakel, Principal Planner Watson.

Absent and Excused: Haak, Natrop, Smith.

  1. Minutes. A motion to approve the minutes of the April 10, 2018, meeting was made by Feldt, seconded by Landreman. All members voted aye. Motion carried.
  2. Assumption Request – Old Kaukauna, LLC. Mr. Jakel explained that the applicant, James Wolf of Greenville Storage, LLC intends to assume the existing RACK loan of approximately $45,000 from Umer Sheikh (Old Kaukauna LLC). Cozzy Corner and all other current tenants will remain. An existing PACE loan for the replacement of an oil furnace will be paid in full at closing. Mr. McGinnis asked if there were plans to repair the façade. Mr. Jakel explained that he specifically noted that the repairs would be a condition of approval. All existing loan terms including job creation and personal guarantees will still apply. Mr. Feldt asked about future plans for the building. Mr. Jakel explained that Cozzy Corner will remain as will the commercial and retail tenants. Mr. VanderWyst asked about Mr. Wolf’s business background. Mr. Jakel explained that it is primarily storage with commercial and residential rentals as well.
  3. Executive Session – Assumption Request (Old Kaukauna, LLC to Greenville Storage, LLC). A motion to adjourn to Executive Session at 9:10 a.m. pursuant to Wisconsin State Statute 19.85(1)(e) to discuss the assumption request was made by Feldt, seconded by McGinnis. All members voted aye. Motion carried.
  4. Open Session – Assumption Request (Old Kaukauna, LLC to Greenville Storage, LLC). A motion to return to Open Session at 9:15 a.m. was made by McGinnis, seconded by Landreman. All members voted aye. Motion carried. A motion to approve the loan assumption request of the existing Old Kaukauna, LLC loan by Greenville Storage, LLC contingent on the repair and maintenance of the building façade and that all original loan terms and conditions remain was made by Feldt, seconded McGinnis. All members voted aye. Motion carried.

    Executive Session – Clay Eiting    . A motion to adjourn to Executive Session at 9:16 a.m. pursuant to Wisconsin State Statute 19.85(1)(e) to discuss a loan request by Clay Eiting to accommodate the acquisition of 144 East Second Street made by Feldt, seconded by VanderWyst. All members voted aye. Motion carried.
  5. Open Session – Clay Eiting. A motion to return to Open Session at 9:35 a.m. was made by Landreman, seconded by VanderWyst. All members voted aye. Motion carried. A motion to direct staff to draft a non-binding letter of intent stating the Authority’s willingness to consider a loan in the amount of $35,000 at 2% for 5 years for the acquisition of 144 East Second Street, contingent on the review of updated personal financial statements and conventional financing docs, an option for assumption of rents, and a second position on real estate was made by Feldt, seconded Landreman. All members voted aye. Motion carried.
  6. General Matters. Mr. Jakel explained that the Authority’s attorney has begun the foreclosure process on Kate Vandenberg of Quencher’s Food and Spirits. Ms. Vandenberg is not cooperating with the service requiring a series of public notices in the Post Crescent. Ms. Vandenberg contacted Mayor Penterman asking for an opportunity to present her reasons for stopping the foreclosure to RACK. Mr. Jakel denied the request as Ms. Vandenberg has had numerous opportunities over several years to meet with the Authority to restructure her loan or come up with a business plan. Ms. Vandenberg indicated that the business is her retirement property however Mr. Jakel explained that there is currently too much debt against the property to have a surplus from a sale. The consensus of the Authority was to deny the request by Ms. Vandenberg as no new information would be presented.

There being no further business to be brought before the Authority, a motion to adjourn the meeting at 9:50 a.m. was made by Feldt, seconded by McGinnis. All members voted aye. Motion carried.

Julianne Schroeder

Executive Secretary