CITY OF RHINELANDER

PLANNING COMMISSION MINUTES

TUESDAY, JUNE 15, 2010

MEMBERS PRESENT: Chairman Mayor Dick Johns, Sandra Bergman, Russ Brown, Bill Freudenberg, Mark Pelletier and Joe Sturzl.

MEMBERS ABSENT: James Leschke.

OTHERS PRESENT: City Administrator Bill Bell, Bob Berns of DRI, Deb Berns of WPSC, Ronald Counter of the School District, Ken Heck of Heck Capital Advisors, OCEDC Director Jim Kumbera, Craig Mandli of the North Star Journal, City Attorney Philip Parkinson, City Clerk/Treasurer Mary Richardson, Fire Chief Terry Williams.

CALL TO ORDER

The meeting was called to order by Mayor Johns at 7:00 P.M., noting there was a quorum present to conduct business, the media had been properly notified and the agenda duly posted.

NEW BUSINESS

Public Hearing – Adopt Resolution Amending Tax Incremental Financing (TIF) District #6

City Attorney Parkinson noted that TIF 6 is an industrial TIF District adjacent to the Airport. TIF 6 was originally created in 2002 as a joint effort among the City, Oneida County and the Airport. TIF 6 was amended in 2006 to facilitate the ABX project. We are now proposing to amend TIF 6 again, to incorporate an additional 8 acres. The new building for Spee Dee Delivery will use 2 acres, and the other 6 acres will be available for future industrial uses. Parkinson advised that there will be another amendment in the future, as some additional property will need to be annexed, but we didn’t have sufficient time to include that in this amendment. He noted the total project costs will be $525,000; $30,000 for the Spee Dee Delivery project, and the rest for site improvements and expenses for possible future development. The Spee Dee Delivery project will maintain approximately 15 local jobs, and will retain a delivery service near the Airport.

MOTION BY BERGMAN, SECOND BY PELLETIER, TO ADOPT RESOLUTION AMENDING TAX INCREMENTAL FINANCING DISTRICT #6.


Pelletier noted that this amendment won’t change the life expectancy of TIF 6; it will still expire in 2025. Parkinson confirmed that, and noted that the new law does allow extending out to 40 years if a TIF District is distressed.

Sturzl asked how the term for payback is estimated. Parkinson stated that this type of TIF District can go out 23 years, so we normally look at that time frame. He noted that when we did ABX, we projected that we wouldn’t break even until the second expansion, which is forthcoming. He noted that TIF Districts can be paid off early, if more new increment occurs than anticipated, but with industrial projects, the focus is usually on job creation more than quick repayment of the TIF.

Bergman asked if the downturn in assessment helps with the numbers. Parkinson stated that the law says that all of your TIFs, existing and proposed, cannot exceed 12% of your equalized value. Generally, if your TIF Districts are decreasing in value, the rest of the city is also decreasing, so the percentage isn’t affected. Parkinson noted that although TIF 6 is tax-exempt as City and County property, the law requires a projected value to be placed on the property, which we anticipate to be $120,000. Assuming both this amendment and the creation of TIF 8 are approved, we will still have $10 million of available assessed value for any future TIF District activity.

VOTE ON MOTION: 7 AYE, 0 NAY (1 ABSENT – LESCHKE); MOTION CARRIED.

Sturzl asked about the lease with Spee Dee Delivery. Jim Kumbera stated it’s a 10-year lease, 5-year renewable. Sturzl asked if the lease provides for a penalty in the event they break the lease. Kumbera stated that we will be escrowing 50% of the annual increment to cover any potential shortfall.

Public Hearing – Adopt Resolution Creating Tax Incremental Financing (TIF) District #8

Bell stated that in conjunction with the waterfront grant we received a couple of years ago, this is the next step in developing an implementation strategy and starting a redevelopment process. He stated that Heck Capital had a perfect project to fit into the downtown business district and with our goals for waterfront and downtown development, to put money back into the community. Bell noted that the boundaries were created by taking the current downtown Business Improvement District and expanding those boundaries to include the east and west sides of the Wisconsin River, running from the area of the VFW building, north to the Paper Mill dam, and north of the Hollow to connect with the existing BID. Bell stated that currently, the valuation of the downtown area has been stagnant or declining; this plan will freeze that at its current level, and any new increment created after the date of creation of TIF 8 will be used for new projects within TIF #8. He noted that every project is different, so each one will have its own timeline of expected payback. The Heck project has a 6-8 year repayment schedule, based on the projected cost of $1.2 - $1.3 million, which would generate $25,000-$30,000 annually in property taxes. The City is investing $150,000 into this project. Bell noted that a similar analysis will be done for all future projects.

The list of potential public works and improvements includes land acquisition, site development, demolition, façade improvements, and infrastructure improvements, such as water, sewer and storm sewer. The second main project outlined is the sewer interceptor project, which is the main line running along the east side of the Wisconsin River from the area of the Priebe Law Office to the VFW area; the estimated cost is $800,000. As for potential public works projects adjacent to the TIF District, the OCEDC has purchased the house next to the Heck Capital property; OCEDC is handling acquisition and demolition and the City will look at purchasing it at a later date. Bell noted that the property is outside the boundaries, but it will directly support the activities within the TIF. Bell stated that the only zoning change recommended at this time is to create the waterfront commercial district, which is basically a corridor along the Wisconsin River that includes properties directly on the river bank or in view of the river. The Job Center is being kept outside of TIF #8, because the property value will drop to zero when Oneida County purchases the building, which would have a negative impact on our TIF numbers.

Bergman noted that several residential properties are located within the TIF #8 boundaries, and asked if those property owners have been contacted. Bell stated that there was nothing other than the legal notice published in the Daily News. He noted that the only thing we would be looking at for residential properties would be assisting homeowners with façade and building improvements, by utilizing the City’s CDBG funds. Pelletier noted that the residential properties are already located within the downtown BID.

Bell stated that the plans for demolition include the old warehouse buildings in the area of Pomp’s Tires; under the waterfront plan, these buildings would be removed and the area redeveloped. He noted that there are also several old buildings along Stevens Street, between the O’Melia law office and the Federal building, that the waterfront committee has slated for future demolition/relocation to bring in new development.

Mayor Johns stated that when we talk about these plans, we’re all aware it won’t happen overnight, but the plan is the first step and is necessary to seek funding.

MOTION BE BERGMAN, SECOND BY FREUDENBERG, TO ADOPT RESOLUTION CREATING TAX INCREMENTAL FINANCING DISTRICT #8. 7 AYE, 0 NAY (1 ABSENT – LESCHKE); MOTION CARRIED.

MATTERS OF EMERGENCY/INFORMATIONAL NATURE

Parkinson stated that after the Council adopts these resolutions, the Joint Review Board needs to be convened to review and determine that these developments wouldn’t occur without the TIFs. The process needs to be completed by September 30th.


FUTURE AGENDA REQUES AND MEETING DATE

The next regular meeting of the Plan Commission is set for June 22, 2010 at 4:00 p.m.

ADJOURNMENT

MOTION BY BROWN, SECOND BY PELLETIER, TO ADJOURN THE PLANNING COMMISSION MEETING OF JUNE 15, 2010 AT 7:45 P.M. 7 AYE, 0 NAY (1 ABSENT – LESCHKE); MOTION CARRIED.

APPROVED BY: ______RECEIVED BY: ______

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