Minutes: Redevelopment Authority: December 2006

Evansville Redevelopment Authority
Board of Commissioners

Regular Meeting
Wednesday, December 6, 2006, 7:30 p.m.
City Hall, 31 S. Madison Street, Evansville, Wisconsin

MINUTES



I. Call to Order. The meeting was called to order at 7:30 p.m. by Chairperson Eager. Present: John Decker, Chris Eager, Bill Hammann, Roger Roth (arrived 8:03 p.m.), Tony Wyse. Absent: Betsy Ahner, Tom Calley. Also present: Jeff Farnsworth, Mayor Sandy Decker (arrived 7:50 p.m.).

II. Declare Quorum. There being a majority of the Commissioners present at call to order, a quorum was declared by the Chair.

III. Approve Agenda. The agenda, as distributed, was approved without objection.

IV. Approve Minutes of November 21, 2006 Meeting. Motion by Decker, second by Wyse, to approve the November 21 minutes, as distributed. A suggestion to correct the minutes to reference the "Redevelopment Authority" rather than the "Economic Development Authority" in one location was agreed to by all Commissioners present. The minutes, as corrected, were approved by voice vote.

V. Old Business.
A. Approval of $6,000 grant reimbursement to Lewis B. Farnsworth for 12-14 East Main Street restoration based on submitted documentation of costs.

Jeff Farnsworth appeared on behalf of Lewis Farnsworth. Mr. Decker distributed copies of minutes of the Common Council's approval of reimbursement of 20% of project costs, or $6,000, whichever was less, in connection with facade restoration at the subject premises. He also distributed a listing of project expenditures (by contractor or vendor) totalling more than $34,000, and copies of e-mail correspondence between City Assessor Hallie Wendorf and former City Administrator Bill Connors reflecting Ms. Wendorff's view that the interior work done in the restoration would have a significant positive effect on assessment of the property. Mr. Farnsworth explained that work of mechanical contractors was necessary to provide new air conditioning to replace former window air conditioning units on the front facade, and that modifications to interiors at the front of the businesses was needed because of enlargement of the first floor windows to historical dimensions.

Motion by Wyse, second by Hamman, to approve reimbursement of expenses in the amount of $6,000, based upon submitted documentation.
Approved by voice vote.

B. Discuss rough draft of development agreement for 7 East Main Street (Eager Building).

Jeff Farnsworth appeared on behalf of the developers of the project. Mayor Decker distributed an initial discussion draft of a proposed Developers Agreement, based upon the Grange Store Developers Agreement, as suggested by the Commissioners at a prior meeting. She said that she and City Attorney Kopp sought the Commission's guidance on additions and refinements to the draft, and noted that a Developers Agreement acceptable to the City was among the five conditions imposed by the Common Council for TIF financing for the subject project.

Commissioners expressed strong continuing support of the project in principle, but observed that the developers had not yet furnished the Redevelopment Authority a budget, listing of projected costs, nor any other documentation subsequent to presentation of the architect's construction drawings and specifications. Concern also was expressed by Commissioners that work has progressed beyond demolition and into reconstruction without fulfillment of all of the conditions imposed by the Common Council, and before an understanding has been reached between the Redevelopment Authority and the developers as to which categories of work will be eligible for TIF reimbursement, or as to which standards must be met to provide assurance that costs to be reimbursed are competitive.

Chairperson Eager observed that the Commissioners could not judge how the currently-estimated costs (of slightly over $2,001,000, as furnished to the City by the Wisconsin Department of Commerce) compare with the developers' previous estimate of $1,900,000, absent any cost documentation from the developers. Mr. Farnsworth confirmed the developers' understanding that the purchase price of the premises, in the amount of $330,000, will not be included in project costs for which partial reimbursement will be sought from the TID, and agreed to furnish the current budget and related documents at an early date.

Regarding paragraph #2 of the draft agreement, Commissioners suggested that refinement and elaboration were needed, especially as to the definition of "improvement", and as to the effect of the anticipated $280,000 loan from the City to the developers, which has been facilitated by the expected Department of Commerce Community Development Block Grant.

As to paragraph #3, Commissioners recommended that a further definition of "project cost" was needed, including an expression that the acquisition cost of the premises is not to be included. A breakdown of project costs should be called for.

At an appropriate point in the Agreement, it should be specified that disbursement of funds is to be made by the title insurance company handling the construction draw account, in response to periodic draw requests of the contractors, and subject to an approval mechanism acceptable to the City.

The developers' requests for reimbursement for particular items of work exceeding a threshhold amount of perhaps $1,000 to $5,000 should be subject to a requirement that the cost be supported by 2 competitive bids. It may be appropriate to include a specific waiver provision for this requirement in some instances.

VI. New Bussiness.
C. Motion to recommend to Common Council Resolution 2006-49, authorizing submission of a Community Development Block Grant - Facilities application for the Eager Building conversion. So moved by Hammann, second by Wyse.

Mayor Decker explained that an authorizing resolution from the Common Council is a formal requirement of a CDBG grant application, although in this case the Commerce Department has advised the City that its application is successful, in advance of presentation of the authorizing resolution. The City is informed it will be awarded a grant of $300,000, of which up to $20,000 may be devoted to grant administration costs. The City's Housing Authority will administer the grant. The balance may be loaned by the City to the developers of the Eager Building for purposes of funding a portion of the costs of converting the second floor into residential space. Loan amounts repaid by the developers will be retained by the City for purposes of establishing a revolving loan fund to benefit other moderate- and low-income housing projects in the City.

Mr. Farnsworth pointed out that the legwork for the grant application had been performed by the developers themselves, and that it was their desire and expectation that the loan be made on an interest-free basis.

Commissioners noted that the loan to the Eager Building developers is subject to negotiation between the City and the developers as to term, interest rate (if any) and the like. Chairperson Eager said it would be in the public's interest to negotiate a shorter, rather than a longer, repayment period, so as to build up the revolving loan fund as soon as possible.

VII. Other business.
None.

VIII. Adjournment. Roth moved, seconded by Hammann, to adjourn to the regular January meeting. Approved by voice vote at 9:25 p.m.


Respectfully submitted,


John Decker, Acting Secretary

Please Note: Minutes of the Commission are not official until approved at a subsequent meeting.