Community Development Authority 2020 - Regular Meeting

I mean, there was some downtime about putting up condos there, but they

Maybe you don't have a deposit to fix it. Yeah. Can you hear us okay?

Yep. Okay.

Perfect.

Yeah. How you doing? How you doing?

Yeah. I

got a I got a kid on her basketball team where

it's crazy to say

it on the afternoon. Yeah. And They missed the game, and we came back. Remember there, Kevin. What's up? Purpose said it was in the morning, I'll call it minus thirty six for

Right.

Okay. And then

Yeah. Bye. Stand there. And there's Adam.

There he is. He isn't at the bar. Okay.

Like, had

him on high. Yeah.

Yep. Okay. So, yeah,

We no. But

else is there?

They are

Is there a number up there?

Nobody else is on here. We it won't repeat it. Shows. I didn't hear anything otherwise.

So we we don't have a. They also pop up.

That would be from, you know

Can't quite hear it again.

Did you, by chance, hear from Keegan, Adam?

I have not. No.

Okay.

Yeah. She's wandering our own experience.

Yeah. I have the model work.

Yeah. Watch for people. Christmas. That's for a bottle. I mean, this is not a good question, but I knew. Right away, we start late. I mean, we're not gonna run at night. I mean, you know, this is not I think we should be over.

We're going back upstairs and

forget about this room. Yeah. Well, he's prepared for that. Yeah.

They did? Yeah. Oh. He's gonna join virtually.

Okay. Great. Keegan's going to hop on virtually.

You're gonna have a room for?

Sorry, guys. Thank you, Michael, for the reminder.

Yeah. You're welcome. You're very busy with me, baby. Yeah. We're sorry to bother you, but we need you for our

department. Yeah. Okay.

We got a quorum, so I'm gonna call the meeting or take an oral call. Mhmm. Yeah. Okay. Everybody got their minutes from last meeting, December 17. Any conditions or corrections? Second. All in favor, say aye. Aye. Opposed? Motion passes. Okay. Now we can move around because we do have extra people on Zoom. They don't have to stay with us forever. So we'll skip our public housing business for the moment. What?

Adam, which one would you like to do first?

Since we have people from Gorman online, I guess that probably would make the most sense.

Yep.

Okay. Great.

Do you

want me to start with repeat? Yeah.

Yes, please.

Okay. So I you are all aware. Obviously, we've been working for quite some time to try and redevelop Merrill. So we are getting very, very close, hopefully, to being able to dispose of half of that property. The main developer on that is Gorman and Company, out of Oregon, Wisconsin, kind of the Madison area.

So they are at the point where, as part of their due diligence, they are looking for the site plan and design review approvals from the CDA. Since you guys are the owners of the property, there is that requirement, and then this is in the downtown design overlay as well. So that also triggers this review. So within the packet, you should have seen, some renderings of the building as well as a conceptual site plan, so just to kinda give you a sense of everything. Ultimately, this is a workforce housing project, so it is looking it has obtained, low income housing tax credits through, the state already, and they're working on assembling all their other pieces of the capital stack, which I believe includes some money from the Department of Administration, potentially federal home funds, and some other sources.

And then, like, maybe there'll be some participation from the city in this as well. So as far as the actual site and layout, the design is, I guess, what I would consider fairly typical for a higher end looking four story apartment building. If you drive down State Street or in Madison or in any of the other communities where we've you see a mid rise building, this is gonna be fairly consistent with that. Materials mainly being masonry and smart board siding. And then, ultimately, there's 59 units, and on-site parking, and it would take up about half the site.

So overall, staff does recommend approval of the site plan and the renderings as submitted, with no additional conditions at this time. K. And then as noted, Ed and his team are online if you have any specific questions that I can't answer.

Alright. We we Now I'm done. With you. And so I thought building itself looked very good. And I said, I should not watch this right there.

I agree. I've I've supported this since it first brought brought up to us. So I have no issues with it.

So we have a motion to Alright. Press the CA approved site plan. Yep. I'll make the motion to approve it. Any further discussion? All in favor, say aye. Aye. Aye. Ian, say aye. Okay. Okay.

Great. And, Adam, I could say a few words if you want me to just in terms of introduction of the team and what the next steps are.

Yeah. That'd great. I was

gonna just ask a question just, like, just for my as long as getting from my constituents, like, when is everything gonna start at this point?

Yeah. I I'm sorry. I didn't hear you. Could you say it a little louder? I'm sorry.

Oh, yeah.

I'm sorry. Yeah. I was just gonna ask, like, now at this point that you get the approval, like, what when are things gonna start? Because I'm

Right. Yeah. Was just gonna give you a little update. So I'm Ted Matcom. I'm the Wisconsin market president. Adam Gorman is the director of development. So we actually get moving dirt and getting the the big machinery in there. He'll be the guy who supervises that. Daniel's our architect. And and I do appreciate you guys approving that that rendering because we actually went back and forth on that rendering, which was we're trying to make fit in the site with an updated look, but still a little bit of a view to the past and kinda, you know, respect the heritage of that site.

And so we are looking forward to having half the site being the building with the with the parking and then kind of, I think, Adam, correct me if I'm wrong, like a park cap, which would be like a park or green space to the back, which we'll design in the future. Obviously, very environmentally challenged site there that has gotten a lot of remediation efforts on. Is that is that correct, Adam?

Correct. Yeah. We're beginning to look at kind of an interim use, which would be basically to cap the sites, with some topsoil after doing some additional demolition and cleanup work on that. Based on where numbers came in on some bidding and things recently, that's probably a couple years out ultimately, but, yeah, that is the

Great. And so the obviously, the the interesting thing about this site and the challenging thing about this site is the the structure that is beneath the surface, I'd say the subterranean structure. The question well, let me back up. The fact that, the actual structure that's subterranean here is built like Fort Knox, and so we would love to be able to use a lot of it. However, it's made for a different purpose.

So we're trying to use some of the existing rooms and caverns there as a unique instrument of storm water detention, which would be really cool. Stantec, who is our engineer, they're working with us to kind of make that a stormwater detention facility, which would be really cool. And then we're trying to make that with some aggregate fill on what we're doing here on this kind of supplementary part of the scope of work, put engineered fill, which means, in a sense, aggregate pebbles that would be strewn throughout the site to kinda give us a foundation where we'll put on what we call our structural slab. You know, there is no basement to this building. It'll a structural slab with foundation with parking on the surface, which will be in the middle of the site.

You won't see it from the street. So that is ongoing. We expect to be closed around June or so here. That's what our time frame tells us. I think there's a little bit of a wild card on the DNR part of this, you know, the environmental part, but I think Stantec working with the city has that pretty well managed.

And, you know, I and and we're extremely excited because we're gonna have a range of incomes here that are 80% of the county median income, which is pretty much market rate from where, you know, the rents fall to, you know, 30% kind of unit income. So we have a big mixed variety. And the nice thing about these projects is you don't have, you know, too much low income. It is mixed with other incomes, and so it's a very income diverse, what I would say based on the over billion dollars of development I've done in in Wisconsin over the last twenty years, a very stable community that's a good, you know, really nice asset for your downtown. I think it'll be a really nice building and and, you know, good workforce housing for for people of Manitowoc.

So any other questions you guys got?

So if you close in June, then when when would, like, then the next phase start, I guess?

Yeah. We'd we'd start immediately with, construction. The slab is the first thing, and then, we would, probably be done in, you know, sixteen months. So, the unfortunate thing about that is we start leasing up in the holiday, which is never great, you know, at the end of the year. We don't like that. We like to lease up, like, around February and March. But, you know, it is what it is. And so then we'll lease up probably in six six to seven months. We will be full. The need here in Manitowoc is so great that I'll be surprised if it takes six months to fill the building. Yes. So Thank

you. Thank you.

Yeah. Absolutely. Thank you for the opportunity, and thank you for the chance to be on the call.

Okay.

Alrighty?

Yep. Thanks, Ken.

Thank you, Ted.

Take care.

Thank you.

Okay. Adam, what do you got next?

I don't remember. Let me get the.

Okay. We got we're doing homes?

Purdue Homes. Thank you. So, yes, as I informed you recently, unfortunately, our previous developer that we had lined up for kind of the riverfront lots along the river on the South Side of the CN Peninsula or River Point, that project did eventually fall through. So the city reacquired the parcel that we had sold on that, But the city had released a request for qualifications earlier this year, and the whole purpose of that was to try and identify developers that were interested in working with the city on that project. They did not have to present a formal project at that time.

It was really more to kinda submit your resume and say you were interested in the city, and then we had been working with those developers since that, those responses came back. So one of those developers was Redue Homes, which is a entity out of the Green Bay area that does a lot of custom home building, and then they do a fair amount of condos and multifamily as well. But they do have ties to the Manitowoc area. So things have progressed relatively quickly. We first met with them, really after the New Year, to talk about this project and the potential that it could be, and they've, reacted very quickly and presented a concept that is fairly in line with what initially was proposed there, which would be around 20, attached single family home type of units.

So condos, attached single family home, kind of the same thing, but that townhome style, and then one, commercial retail space closer to where the fire pit currently is. So that's very high level conceptual. So if this offer to purchase is ultimately approved, we will then spend the next few months kind of refining that vision, talking about potential development agreements between us and them, and then bringing that back ultimately to the council for consideration. So based on what they have proposed and the reputation and their ability to do this project on a much stronger financial footing, than the previous developer, I think, ultimately, we do support this project and recommend approval and are looking for the CDA support.

Okay. Anybody have any questions for Adam?

Yeah. Just one quick question. I know when the original project came through, the like you said, the financing was a a deal.

So they were gonna go and do

it in phases. You know, they're gonna build, I think, like, eight first, then get those filled, build the other. With this one, with them being a stronger financial footing, are they gonna do more of the scope right away, or is it still that same phased type plan?

Ultimately, they are still looking at phasing it. The difference is that they have the financial capability to build on spec. So they don't need to rely on presales. So they don't that was a big holdup with the previous developer. They needed a certain percentage of the units sold before they were gonna break ground, which makes it extremely hard because then you're telling people, I need you to commit, but then you're gonna be waiting potentially two to three years before you actually get into your unit.

The difference is they can build four as they're selling those. They can start the next four, or they can do multiple buildings at once. They haven't settled on how many they would do initially, but my guess is they would start at that four. And then if things are going well, maybe they'll do multiple buildings following that. But, again, that'll kind of flush out a little bit more during the negotiations on the development agreement.

And then right now, where does that retail spot fit into that base plan? Is that, like, at the end or towards the beginning, or there's no talk?

Yeah. Haven't really discussed it, but, ultimately, it's gonna come down to they would ideally like to identify a user first and build it rather than building out something and then finding out that it's not exactly a great fit. They're willing to build it on spec and kinda white box it, basically, have it ready for something. But, again, they're ideally, we would find them a good tenant, then they build

it at that time.

Okay. Adam,

do you know if the I think the original plan was, a three story, if I remember correctly. Yep. Is it going to still be that same rough footprints?

Again, they haven't necessarily settled on a design, but I think they're leaning to a two story concept. So most likely, you would have your living and potentially main bedroom on the 1st Floor and then additional bedrooms on the upper, I believe, is what they're kind of playing with.

K. Any other questions? So a motion to be in favor of this plan is what you need, Adam. Is that

That's, I guess, support or approval of the offer to purchase.

So Say it. All in favor, say aye. Aye. Aye. Oh, a question passes. I see. Good.

Last thing, Adam, is the RLF.

You still there?

Looks like the this loan, I believe it was last month or it was two months ago. But, unfortunately, since that approval was granted, the primary lender dropped out on the project, which was originally, I believe, Fox Communities Credit Union. So we were working with them trying to find a new lender. We have been lucky enough that United One has stepped up and is has already approved, their loan. So it's gone through their review process, their loan review committee.

But just the way that the our approval and my overview was worded, we felt it was appropriate to bring it back through the CDA for a reaffirmation of the approval of the loan. Ultimately, our terms are the same. It's a $50,000 loan. That would be a fifteen year with a six month interest only at four and a quarter percent. And then, obviously, United One would be the primary.

Collateral would still be secured with the building. So we would have a second mortgage on the property if the unfortunate happens and the project falls apart. That's how we would hope to get our money back. Kinda one of the biggest change is is that, in order to keep the payments a little more reasonable during construction, they are borrowing less from the primary lender. So initially, when you look at the financials, they have a very small pot of money for, their working capital.

It's only, like, 2 or 3,000. But then the plan is once the building is renovation is complete, they're gonna refinance, take advantage of the additional equity created through the renovations, and then that will bring their working capital up to around 40 or $50,000. So that makes us feel a lot more confident that as they ramp up and they don't necessarily have income coming in, that they will be able to float that through their financial wherewithal. So, ultimately, we still recommend approval of the loan. And, if this is approved, I think we tentatively have a closing set for Friday on the loan.

What property

is that, Adam,

again? This is

the former I wanna say Country Visions was the name of it. Kind of a feed and seed store located on Calumet. So Country Store. Okay.

Yep.

Yep. That's I always get the name wrong, but that would be correct.

I take the motion to approve. Thank you. Okay. Okay. All in favor, say aye. Aye. Opposed? Motion passes. Yeah. It makes perfect sense. We're not gonna change anything.

Not difficult. Yeah. Yep.

Thank you. Very good. Now we I think

Do you have any updates on them all you want to share?

Oh, yeah. Updates as long as

we got. Yeah. Yeah.

Then we can go. Yeah.

Let's see. So yeah. So your big three, obviously, you have your update on Miro because you approved the project on it. River Point, again, just approved that offer to purchase. We are working with two other developers at River Point.

One would be a townhome rental style. Hopefully, something will come forward in the next couple of months, and then the other one would be a mid rise apartment, that we're working through numbers and cash flow, seeing if we can make that one work. So that's River Point, and then we did submit the grants at RiverPoint as well. So we have we're kinda in a wait and see mode until we hear from the EPA on that grant application. And then at the mall, I believe I have heard that Vinton will be back out on-site either February or early March to finish up their infrastructure work on the property and really get things rolling again.

Our biggest issue there has been, unfortunately, because of the early winter and cold weather, none of that soil got stabilized properly, so we have had a bit of a dust bowl out there. But the developer has been trying to work with adjoining property owners who have been affected by that, trying to minimize kinda that impact, unfortunately. So other than that, nothing really on the malt until hopefully spring, it'll start looking better.

Very good. Thank you, Adam. Yep. Hey. We're gonna go over to housing. Metabolic Housing business.

Financial report? Insurance for there there is two months worth of report.

Yeah.

And I did something different this time. I put all the checks I thought you'd have questions on. I tried to put an explanation. So did that help? I don't and I tried to explain what was going on and why we had to spend the money. I didn't go with that. Don't So I really like that format.

Don't know. I'm sorry. We're gonna see it.

I was gonna list the pages that you could put to note, but I I don't know if that's on there. So does anybody have any questions about any of those checks or any other questions about that? Okay.

I guess, you know, from the standpoint of the operation is we've had more expense this year because of Gary.

And Gary was gone for three months, and then we've had he hit with some terrible tenants who I had to They had to leave, so they left their apartments in horrendous conditions, which keeping can attend to because he had to go in there and eat some of this. They had to replace carpet. One of them in particular was because of the smell. It was so bad. So bad. Was down the hallway. And the tenant around this one apartment kept cleaning so that, you know, that body.

Oh,

yeah.

Yeah. It's it it was that one was not particularly very fun.

Yeah. That's no. Yeah. Yeah. We do inspections annually on all the apartments, but we also have a bed bug dog come through quarterly, and a staff member always goes with him.

And then we also do extermination, pest control. They go through every six months. So there's always somebody looking in these apartments, and they do bring attention if there's an issue. So I feel like we have a good grasp on keeping up in these apartments and knowing what the problems are. Right now, I would say there's only one apartment that I really have issues with not supporting, but I talked to them.

And I told them, if I comes in here, they do their inspection. You need to make sure that they can always check on your apartment and make sure it happens. Otherwise, you're not. And Gary talked to him as well. So but, otherwise, I would say, yeah, not gonna move it.

That for the most part, it's actually good job keeping with our apartment. And Gary had this idea where he took a bunch of pictures from bad cleaning or bad house keeping and had to print them off, and that's what was ever telling me. Going to prison. This is bad. Is not what we want. If you're drinking it like this, we need to know before this happened. Yeah. Going to prison that. And he said, people may not file.

Well, he was everyone's

smile, bring you back up. We have a lot of. Because we have a lot of people who have. They put stuff down there, and then you don't have garbage disposal, so then it backs up. Exactly.

And that's why we took them out because we were tired of having to deal with that issue. So I'm trying to think what else I have on that list that I can tell you about. It also goes into the update. But you

You mentioned the they have a board, one of the apartments. They're all they're leak or something.

There must have been previously because Gary was gone, so I had to do all the inspections while he was gone. And I found several issues, and I knew that if I came in there for their inspection, which were two fourths here, that they would say that we had to fix it. So I just had to follow them while he was out. And, you know, like, the cabinet door missing,

and I

had to get that custom made because he couldn't find the door anywhere. We don't know why it was even missing. The tenant said, oh, the maintenance guy before took it off, but we looked everywhere. We couldn't find it. The soggy floor, that had been on my list for a couple of years, and it still was doggy.

And then once they got in there, it just wasn't repaired correctly. So then they fixed it and made it so it wasn't squishy of what it looked like according to the pictures. And then there were several I believe it was three different countertops that I could have just left them because they had nice marks everywhere, but we want people when they move in to say, okay. I like my apartment. It looks nice in here.

They keep up with, you know, fixing things. But according to that in their new Inspire standard, yes, we could have left the cabinet the countertops that way. But Gary and I assessed it, and we're like, well, we'd rather replace it, especially if it's empty. I get it done. So that's why I have all those countertops on her. And that's part of the reason I made my budget a little bit higher, but Yeah. Those are open. And then the quality construction, that was for our main door. Because when I don't know who did it, but somebody was jamming a shopping mall, jammed the door, and then it wouldn't walk far from me. So the tenants were not secure when nobody was in the office.

They could just walk in to the door. So that process money, but we got it. And then Johnson Controls went through. It was actually last year, and we didn't send me a report until recently. And then I had to fix all those sprinkler heads just because one was dropped and not working correctly. I had to fix all of them, so it's really expensive. But at least now they're not.

What's that? Was it was were they just sort of, like, spec for the the rest of them? They just

I can't remember if it was breastfeed or something when it it was corroded, and then it didn't work. Yeah. That's exactly Well,

part of the reason why I'm asking too. I'm chairman of station. We just put this sprinkler stuff in too so I could I just wanted to put let's say we got one that's better. That was the same thing. That's all. So except that it's pricey.

And it's not the whole floor. I had to do the whole 1st Floor. I believe it was the 1st Floor. So that was expensive.

See. The new ones, you know, upgraded over the old ones? Are we getting a better product now?

I think they're all the same, honestly. They they don't look any different. But then auto owners, insurance. I did ask our insurance agent if he could come and present here if he had any questions about why. And hardly anybody wants to cover. So he does.

Scared with you.

Well, I used to be on the $27,000 a few years ago, and the church neutral to Take on her. So then nobody else wanted to cover them. And now we're stuck with

I It's different than just the standard out of that. It's all years. A lot of business covered is. They won't take out any new clients. They're obviously dropping clients.

That's exactly what you told me. It's getting.

It's her birthday. Yeah. Those are not just both parties. Yeah. Yeah. Parts. You know? Right. Great work too. I just believe you got a lot you got a lot of people in the building. There's a lot more kids. Right. Excess right over. That's where it gets.

And we do have extra umbrella that I added as well. Because That'd be very much. Exactly.

Is this through? Yes. Other housing authorities got in

the area use them as well? Because is pretty big

Actually statewide. I don't know about other housing authorities.

Just be curious about about about about that.

I can ask them. Just to say

who who they're all using. There might be I don't know that they necessarily bundle them specifically, but, you know, if there's ones that are that are comfortable with it, it'd be good to know.

I will at my next district meeting, I will bring up.

Yeah. It's better than what they have

gotten. And then the last one is the. And we haven't had any bedbugs, but we still have a lot of things in it. Don't know what it is. So So I the day I went, and I sent out a bunch of applications again.

It's been seven. It was two weeks, so I sent out seven applications with everything. Told the city to respond because these partners are working. In your words than anybody, and I have I got more.

People are angry.

So now I don't have a wait list at all. So now it's basically first time. But I have a couple people moving in, and one is actually a permanent. He called the other day. Called me back. So I'm grateful for that. That shows right there that we're doing a good job if they wanna come back.

And winter slows down, actually. The the cold weather would be cold.

I know I would burn through the cold weather. So

So we need a motion to approve the financials? Second. All in favor say aye. Aye. Opposed? Yes.

K. Okay. So we just had a big meeting of our renovation project that was a day ago. We had a big turnout. There's a lot of interest in the project, and we still have people coming to look at the roof and for this building.

Today, the sprinkler, don't know what the sprinkler type of thing. That's good. And then, originally, we were gonna do the bid opening for the bid opening today, but we extended it out until the seventeenth because the project is is really big. And Eric, our architect, actually messed up on the date when it got published, so we just wanted to make sure we did our due diligence, gave more time. So So

we're thinking we will get a number of bids.

Yeah. We have several companies already that are bidding, and they know that we have to do hard paperwork because we specified that in our ad that was published, and Eric told all of them. This is required. So, hopefully, we'll get a good construction company. And they're hoping that well, Eric is hoping that we can start either at the February or become a project.

Just depends on what we hear back. And our bid document, about 400 agents, I didn't think. But the drawings are pretty, so I'm glad to send over it, like, just so you could see what the drawings look like as a model. But I'm excited. I cannot wait for this. It's for years.

So Yeah. It's a combination of I haven't seen the drawings that we've been talking about. You know, as you're expanding the office, but you didn't we've always had this postal concern that we could finally clear up too because when stuff is dropped off and out of the you know, somebody can get it. They can't leave. It's sitting out there. They have it in the office, but if you're not there, then what this will finally I think we'll have it where people can go there at any time. And

safety issues as well. The office will be locked all the time, which we've been keeping the door locked because I've had some safety concerns in the last couple of months. So now we just keep it all the time, and then we just get up from our bed. That way, at least it stops somebody from just coming right in. So this is going to be a big relief, and Karen and I will cannot wait. So Very good.

Other question? Hey. Anybody else have something for the for the order? Doing well in our new room then? Yeah. Have not gone we have not gone beyond our time limit.

No. No. First time.

Our and everybody can read that what's out there. It's further distancing away from us. But other than that, I would say it's we're good. Deagan, thank you for getting on. We get in that boat, and we like talking to you anyway. Good report there on the floor. Congrats on the family edition. Oh, yeah. Yes?

Yes. Thank you. Sorry. I couldn't make it in person, but still glad I could join virtually.

Oh, perfect. So a motion to adjourn. Anybody? I'll make a motion to adjourn. Okay. That's it.

Bye, Adam. Bye. Hi.

Dad with us anymore? Oh, he was still with us?

Oh, well. Yep.