Evansville Redevelopment Authority--Minutes---April 24, 2006

Evansville Redevelopment Authority

Regular Meeting

Tuesday, April 24, 2006, 7:00 PM

City Hall, 31 S. Madison St., Evansville, WI

MINUTES
The meeting was called to order at 7:10 PM. Present were Vice-Chairperson Eager, Ald. Hammann, Ald. Wyse, Betsy Ahner, Dean Arnold, and John Decker. Chairperson Hagen was absent. James Otterstein, Rock County Economic Development Manager, and Bill Connors, Executive Director, also were present.

The agenda was approved as printed.

Motion by Ahner, seconded by Arnold, to approve the minutes of the March 21, 2006, regular meeting as presented. Motion passed.

Citizen Appearances Other Than Agenda Items Listed None.

Public Hearing Regarding Possible Change in Boundaries of TID No. 5.

Vice-Chairperson Eager opened the public hearing at 7:11 PM. Executive Director Connors reported that he had placed notices in The Review inviting property owners to come to a public hearing this evening to request that their property be added or removed from TID No. 5. No property owners appeared to make such a request. At its previous meeting, the Redevelopment Authority had received a request for Jim Krueger to add his property at 357 Union Street to TID No. 5. Mr. Decker reported that Chairperson Hagen spoke with Mr. Krueger, and Mr. Krueger understands that it would not be prudent for the city to use one of its limited opportunities to change the boundaries of TID No. 5 to add just one parcel. Mr. Connors showed the commissioners a letter from Mr. Krueger which appears to indicate a willingness to wait a while until his parcel is added. Ald. Wyse asked if anyone knew of any properties that had potential for being added to TID No. 5 in the near future. Roger Berg, 75 Exchange St., reported that he knows that someone is studying a possible new business development at a location near the boundaries of TID No. 5, and this person might request that the property be added to TID No. 5 during the next 6 months to one year.

Motion by Hammann, seconded by Ahner, to close the public hearing at 7:20 PM. Motion passed.

Motion by Decker, seconded by Hammann, to recommend to Council that Mr. Krueger’s property at 357 Union St. be added to TID No. 5 next time the city changes the boundaries of the district. Vice-Chairperson Eager said he was relying on Chairperson Hagen’s representation that Mr. Krueger was willing to wait to have his property added to the district. Ald. Hammann said he does not want to establish a precedent that the city will change the boundaries of a TID to add just one small parcel. Motion passed.

Unfinished Business
The commissioners continued their discussion of the “pay back” provision in section 5 of the agreement with Triple B Investments regarding the Badger Coach Building. Mr. Connors reported that Hallie Wendorff, City Assessor, had agreed to inspect the building and consider changing its assessed value. Mr. Berg report that Ms. Wendorff had inspected the building for the first time since the renovation was completed and had informed Mr. Berg that she would increase the total assessed value of the land and improvements as of January 1, 2006, to $234,300. Mr. Berg asked the Redevelopment Authority to conclude this change in value fulfilled Triple B Investments LLC’s obligations under the development agreement. Executive Director Connors said this change in value might be enough to do so, but he could not be sure without doing some calculations. Vice-Chairperson Eager asked if there was anything that could be done about correcting the under assessment of the property as of January 1, 2005. Mr. Connors said he would find out. The consensus of the commissioners was that Mr. Connors should perform a calculation with the new assessed value and report back to the commissioners at the next meeting.

The commissioners discussed what assumptions the executive director should use regarding future changes in the property tax rate and future inflationary increases in property values when calculating the net present value of an anticipated stream of future tax increment revenue from a proposed project. Mr. Connors said he has not had an opportunity to research past trends in property values, but he distributed a spreadsheet showing property tax rate for tax increment in every year since 1986/1987. The consensus of the commissioners was that Mr. Connors should use the most recent five years of property tax rates to project the future trend in property tax rates.

New Business
Tess Gruenstein, intern from Beloit College, presented her report and recommendations after speaking with downtown businesses owners about the 2007 Main Street Reconstruction Project, and asked for suggestions on how to encourage business owners to speak with her. One of Ms. Gruenstein’s recommendations already has been addressed by the formation of the Chamber of Commerce’s task force to work with the city to plan the 2007 project. Ms. Gruenstein reported that restaurants cannot have customers enter through their back doors, because that would improperly bring customers through their kitchens, so they are interested in creating “alternative” (i.e., side) entrances. She also reported that a number of business owners reported that they are not interested in investing in alternative entrances because (1) they are tenants, not building owners and (2) their businesses are struggling financially and might close soon even without impact of the 2007 project. Ald. Wyse reported that many downtown businesses were adversely impacted by the USH 14 reconstruction project in 2005. The commissioners thanked Ms. Gruenstein for her thorough and thoughtful report.

The commissioners discussed two draft resolutions to establish grant programs for alternative entrances to Main St. businesses in advance of the 2007 project. One draft resolution would modify the existing Building Improvement Grant (BIG) Program. Executive Director Connors reported that of the $10,000 the Common Council transferred from the Revolving Loan Fund to the BIG Program account, $3,700 remained, not counting the $3,000 the Historic Preservation Commission had given to the BIG Program for replacement of nonconforming signs in the Historic District. The other draft resolution would create a TIF-financed program. Motion by Hammann, seconded by Decker, to recommend to the Finance Committee and Council that they adopt the draft resolution modifying the BIG Program, and that the Finance Committee find additional funding for the BIG Program. The motion passed 5-0 on a roll call vote, with Ald. Wyse abstaining.

Motion by Hammann, seconded by Ahner, to adjourn. Motion passed.

The meeting adjourned at 8:35 PM.

Prepared by

William E. Connors, Executive Director