Redevelopment Authority Meeting Minutes – February 6, 2019

A meeting of the Redevelopment Authority of the City of Kaukauna was called to order at 9:00 a.m. on Wednesday, February 6, 2019, by Chairman Feldt.

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

Also Present: Mayor Penterman, Planning Director Jakel, Principal Planner Watson, Alderman DeCoster, Interested Citizens, Media.

Absent and Excused: Landreman, Smith.

• Minutes. A motion to approve the minutes of the January 15, 2019, meeting was made by McGinnis, seconded by Natrop. All members voted aye. Motion carried.
  

• Façade Renovation at 111 West Wisconsin Avenue. Mr. Jakel explained that in 1980 the Common Council adopted legislation requiring RACK to review changes to existing structures in the downtown area as a means to eliminate false facades, prohibit pole buildings and retain the area’s historic character. In this case, the Building Inspection Department inadvertently issued permits and work has begun prior to RACK review of the site plan. Mr. Jakel explained that the proposal shows plans to peak the roof and create a larger recessed entrance off the sidewalk. Mr. Jakel explained that RACK’s responsibility is solely to review the façade – not the land use. Mr. Sprangers, who operates a business adjoining the project, explained that there are existing drainage issues, that the two buildings share a common wall, and that employees working on the project site damaged his roof in the process. Mr. Jakel suggested that Mr. Sprangers meet with the Building Inspection Department regarding the drainage issues. Mr. Sprangers questioned the proposed use of the building as residential as it is in a commercially zoned district. Mr. Jakel explained that residential uses are permitted as a pre-existing use or as a Special Exception – this project would be permitted as a pre-existing unit and complies with the code. Mr. DeCoster explained that in order to be considered pre-existing, the building must be used as residential within the past year – this building has been vacant for many years. Mr. Jakel explained that there is a difference between occupancy and building use – while the building has been vacant for a long time, it has always been used as residential. Mr. Jakel explained that both the City Attorney and the Building Inspector have deemed the project as pre-existing. The renovation will trigger requirements to meet all current codes. Mr. DeCoster explained that the project creates a lost opportunity for commercial use and the lower level residential unit will likely be rented to a low income individual with no job and no car and will likely create issues with the Police Department. Mr. Jakel explained that there has been some previous interest in the building as a commercial use however, the parties opted not to proceed. Mr. Feldt asked if there were any other issues to consider. Mr. Jakel explained that Building Inspection will monitor the renovation and permitting and Engineering will address the storm water issue. A motion to approve the façade renovation as presented was made by McGinnis, seconded by Natrop. All members voted aye. Motion carried.
• Update on Loan to Clay Eiting (144 East Second Street). Mr. Jakel explained that the previously approved loan of $35,000 at 2% for five years in a second position behind Abby Bank did close however, Mr. Eiting was concerned with the loan term and the resulting higher payment. Mr. Eiting worked with his primary lender who deducted RACK’s $35,000 from their loan balance resulting in a lower monthly payment to cash flow the project.
• Update on CDBG-Close Program. Ms. Watson explained that since RACK’s program was fully funded prior to 1992, we are in a unique situation where we may be able to keep both our outstanding loans and our cash on hand upon approval of DOA. A letter certifying the pre-1992 funding was signed by the Mayor and submitted to DOA. Approval of the certification would result in all funds being de-federalized and fully under RACK jurisdiction. Ms. Watson recommended that RACK cease lending until we receive final approval which may be as early as next week. Ms. Watson suggested working with a consultant, such as GRAEF on establishing guidelines for a new program while still adhering to our existing regulations until that is finalized. Mr. VanderWyst asked if the Davis-Bacon Act would still be a factor. Mr. Jakel explained that it would not and that job creation would also no longer be a consideration. Ms. Watson explained that RACK may consider the moral and ethical question of who to lend to as the original grant was intended as gap financing for low to moderate income individuals who may not have access to credit. Ms. Watson suggested that LMI lending is still an important goal and RACK should consider upholding that as a way to be an inclusive community. Mr. Jakel explained that RACK’s goals should lean towards gap financing, encouraging private investment and maintaining our current philosophies. Chairman Feldt explained that bringing in a consultant is a good idea as we move into this new environment.
• Update on PACE Loan Program. Mr. Jakel explained that the PACE (Property Accessed Clean Energy) program began with a $40,000 grant from Kaukauna Utilities to assist businesses in making energy efficient improvements to existing buildings. An energy audit is required and funds are capped at 8% of the building value if additional financing is present or 10% if not. Mr. Feldt asked if interest in the program was declining as there was no activity since 2016. Mr. Jakel explained that efforts are concentrated within the downtown and a majority of those buildings have been updated. Mr. Jakel added that financial institutions are somewhat hesitant to participate as PACE loan funds are in a superior position. Additional interest may be generated following the potential de-federalization of the funds and the inclusion of renewable energy as an option. Mayor Penterman asked if Mr. Spranger’s business could be eligible for funding. Mr. Jakel explained that it would depend on the results of an energy audit and the program criteria. Mr. Feldt explained that Kaukauna Utilities could conduct the energy audit free of charge.
  

There being no further business to be brought before the Authority, a motion to adjourn the meeting at 9:45 a.m. was made by VanderWyst, seconded by Natrop. All members voted aye. Motion carried.

Julianne Schroeder

Community Development Coordinator