Planning & Zoning - Regular Meeting

area off of 230th Street. It is uh currently zoned a residential for that area. It's going to be a 14 lot subdivision. Uh it does already have a few homes believe being constructed in it for there. So as far as county's land use plan, I mean it's in a mix of the residential already. It's in an area where uh they for we foresee more housing to come.

Um I ex that lot that lot is not included in when you look at your other drawing. Oh yeah, right there. Right. So it'll be added in or not? It's not.

It's not in there. So, this will be the first step for the county on this. Just so you're all aware, they'll do the urban renewal plan and then they will enter into a developers agreement with the developers. That'll be negotiated out with the developers and board supervisors on there. This uh urban renewal area does say that it's the description of of use of the the tip is would be the payments would not exceed $389,000. There is an LMI that's a low to moderate income holdback on that and Mills County it appears that it's around 36% of that amount. So that equates to the 141752 $12,000 in legal and administrative fees. So that would bring your total amount up to 585. So the LMI holdback has to be they'll they'll use that for they either they could potentially use it in this but you wouldn't see it being used in this subdivision. it wouldn't be used for projects other in other rural areas and want to incorporate a town. But uh on page five of that, it does offer uh a list of seven deals that you can use the LMI for. It can be used for an owner or renter occupied housing rehabilitation. It can be used for grants, credits, or other direct assistance to LMI families. home ownership assistance, tenant based rental assistance, down payment assistance, mortgage interest buy down

assistance, and infrastructure development. Matt, since I've been on this board, I don't think we've [clears throat] addressed this before except maybe at Woodfield potentially. So, this is this is somewhat new to this board to see this type of tiff. So I I think I think the last time we've addressed it potentially was Woodfield, but I I can't guarantee that either. So this board would be un uneducated somewhat on the tip and how how the procedures work. Okay. [clears throat] Just just so you're aware,

right? So Kenneth, we'll start back more towards the beginning of what it would be. So the developers would uh would come and approach the county board and ask to say hey we want to you know we're going to do a development in this area and make sure that you of course ahead of time they make sure it aligns with the land use plan and that's what they wanted to do and or they would adjust them they would come in and ask for an adjustment for the land use plan ahead of time in this instance obviously aligned with the land use plan so we're going to do a development here we feel uh they'll go to the engineers and the engineers will give them an estim estimated construction cost of what it's going to take to get the infrastructure put into that area. And uh I would assume that's $389,000 that they're asking for back in there. So when they look at those costs, you're looking at what potentially what the site grading costs, site grading, site clearing, uh what the road costs, potentially what the power costs. Uh you could also throw in any type of public improvements, right? your your if you got storm water improvements on there, um if you have a water line that runs around there, you can put those costs in there. All of those costs get lumped together into that sum of that what would that $389,000 in this instance be for that. And then [clears throat] um so then we go to our TIFF attorneys and we say, "Hey, we have an opportunity to potentially tiff this area." So they prepare all the documents for us, right? and they basically send us a step-by-step guide on you need to take this step at this time and then it goes right on down the line. So the urban renewal plan establishing an urban renewal area is your is your first step in that and that's what this urban renewal plan is tonight. So that urban renewal plan list out the legal

description. Sometimes they contain a map of them as well to say this is the exact area of what the urban renewal plan is going to be. So what that does is is that helps establish what your base of your tax is in that area right now. So all of what that is has a taxable value to it, right? And you on the developer side of it, you hope that it's right now you want it to be somewhat fairly low. So you get that done. That establishes what your base is going to be. So then you the county will always get whatever that base tax amount is that

yes. Yeah. That base tax amount comes in, right? That's always going to be there. So your tiff amount then is [clears throat] from your base to what you've assumed your value is going to go to by building those 14 homes. And that's how they get their payback on it. So that's like the incentive for the developer to because you're not getting any money unless you build houses and you sell houses and they start paying property taxes back, right? County is still getting its original amount of money. Nothing has changed. Developer wants their payments back. Well, they got to build and sell houses or sell lots to people who are going to build houses. And a lot of times you'll see if they do sell the lots, they're going to put a time frame on it like, hey, you got to start construction within, you know, a year to 18 months. If you don't start construction within a year to 18 months, we got a buyback clause on it. we're going to buy that lot back and we're going to sell either sell to somebody who will build or will build a house on it. Um all of those details get worked out in the developers agreement aspect of how that repayment plan is going to work back to the developers and that will that will go through the board of supervisors. Everybody will agree to it, sign off on it. I'm sure it's in negotiation right now with the attorneys unless or maybe is already kind of being finalized out where the attorneys will send that final draft to it. But that does that outlines, you know, what's going to be exactly what's being held back for LMI, exactly how much is going to go back, and it kind of provides a schedule of what it's going to be. So then as those property taxes start coming back in at a higher rate, as soon as it hits the auditor's office, they know that and it starts rolling into that tiff accountant, that tiff amount, but you have to certify that debt every year. And so that's where those figures come in, right? Theuses in this case are going to provide this is what they're going to give you the actuals. This is what we actually spent on this. So that debt amount gets certified. We can't

look at it and say, "Well, we think that we're going to generate $6 million on it or something and say we're gonna hold that amount." You can't. You have to have those actual debt amounts in there. So then that pays that back to it and kind of gives a stop a stopping point to it to say, "Okay, we've now collected all of our tiff funds. Now, it's just going to go back into your regular tax accounts in the county, your general levy, your rural levy, that but it it'll always be just that extra portion because you're still getting your base taxes are constantly going yearly into those accounts. It's just that above board and it is on a clock, too. So, and it's um when you're tiffing residential, it's a little bit different than if you're tiffing commercial or industrial. Um so, you start with a 10-year clock on it. And even on some of the larger developments, you'll see where they want to you'll do phases of it, phase one, and it'll start on such and such date for that area, which is fine, but your overall so that clock your your longest time period for tax collection into the tiff is going to be your phase one because everything so your phase one might run through year two and then year two phase two starts. Well, then you only got eight years that you could potentially collect on phase two. So, everything is going to stop at that 10 years. They can come back in and you can ask for an extension to that. But, um, you know, we everybody right now and all the municipal whether it's the town or the counties, everybody's really watching what the state house is doing with tiffs because they're talking about it. They're talking about it again. Um, it's scary. It's kind of scary for us every time they get into it because it's one of our biggest tools that we have to be able to get developments to happen

to grow.

Yes. To grow. We have to have this tool. We don't want the state to take it away from us. They've already cut back on their other economic development. Uh whether it was the what do they call it like high high um highpaying jobs or something like that, high skil jobs. They they cut out all those pieces of it. And so they're they've really whittleled down what we have. TIFF is like our last stronghold that we have to be able to do these things to help these developers to make sure we can grow our tax bases and have things happen. So, um, because I think just about any developer would tell you, you don't necessarily make a lot of money on the development itself. They need this tiff to be able to make it financially feasible to have this happen because your infrastructure costs are doing nothing but going up and up. So, but back to where we are tonight then. That's kind of the full story of it. They have to build houses in order to get any repayments back, get them on the tax roles. County will always get whatever tax base is coming in from that right now. Um, step one of that is we establish the urban renewal plan. We make sure this conforms with uh the land use plan that we have in place right now. And uh so for you all you can offer comments to it or um andor go back to real quick.

Right. Yeah. So then the houses I mean I've driven out there. Um so those homes that are already constructed then they're not

they will be it's going to depend on where the where that when the date at which that base gets established. So if they could be under Yeah, they could be under construction right now, but if they haven't been assa if they haven't been assessed to those properties right now when the when the base gets established, then they will be included in into the tip. If they if there's a base, right, what's above. So if but if they've already got assessor's already been out there, they already have taxes assessed to them, then it won't be they've already assessed to because that will be they will be included in the base of what it is, right? Just what they go about. So give me a scenario. So 600 $600,000. It's already constructed.

It's already constructed and say you're paying $8,000 a year on taxes on that, right? That $8,000 a year continues to just come to the county as it normally has. It goes It goes to the county. It goes to the schools. Everybody that it gets divided out to, it will it would go to them. That's the freezing. Yeah. Okay. That's what's the freezing. So, you go above and beyond that, then that's what's going to get rolled in that rolled. Yeah. Any of those new houses, your neighbors build, you know, that next lot next door to you, they build. Yeah. They'll they'll build a new house. If Cessor comes out and says, "Hey, the tax is going to be $8,000." Well, the $8,000 is going to go into the tiff. It's not going to go into the base because the base is already set. They don't build any more houses.

Right. Yeah. The only way they get paid back is by building and selling by building the houses and getting them on the tax rules. That's how you get your tiff money back. Does this only include new infrastructure that's done right from that base point date forward? It doesn't include any infrastructure that's all you can put in. No, it's it's going to be that infrastructure that's already there. Okay. Because they go in and they do that. They go in and they have to up front. Yeah. You have to put the cost up front. Just wanted clarification. How many are completed? Did you say more?

How many are completely done? Four sold or moved into or moved into sold complete sold. Forget about Davis. I don't know if Davis has any questions on Yeah, Davis, if you want to if you have any questions or anything, just unmute yourself anytime and let us know what you're thinking. We'll do. Thank you,

Davis. My understanding we don't have this isn't something that we have to we're just making recommendations we're just deliver

so Matt what was your recommendation again that where that freeze point that's how we have to do it basically follow and then the rest of us would fall into that. Yeah, this is all in conformance with every one I've seen before. We just need to start.

Yeah. We just basically so we we need somebody to make a motion to recommend the board. You can say yes this conforms with the scanning. Anybody have anything public comment or no public comment? This no public comment at this one. Okay. I want to go to the board of supervising. So we'll be

sure. Well, I'm gonna abstain from this due to my brother Mark being involved. So I guess I I can ask answer a question or help with anything but but I will stay out of the way here. So however you guys handle it. So would it have been I wonder would it have been better if this all been in the very beginning had [clears throat] it could I mean it could have been one that at the time they they weren't even they just [clears throat] didn't come in and needed or wanted or

and they get it pretty quickly. They've already applied for all this. So, it's gonna happen. Yeah. I mean, it's going to go to the board of supervisors on October 28th, and I imagine the development agreement will follow shortly after that. They're very move forth with us and have the board. [clears throat] It would be great. like said if somebody wants to make that motion. Does anybody want to make a motion that this thing moves forward? I will make a motion to move this forward to second. I'll second it.

I Let's do a roll. [laughter] carries on to the board supervisor here. Part of my question too is when it gets frozen

that's hard. I'm not part so I can't be involved in it but it pros from the beginning from sold Amy's gonna Amy Buork from Dorsy Whitney he's gonna be

there's kind of two different law firms I would motion to during the meeting they're they're One of the best ones that want to make sure emoji.

Oh, just one second. I have one one more thing for one. So, at our our last commission meeting, we talked a bit about uh accessory dwellings and that change that was done and how Mil County already has two family residential lists out in their code. You had brought up the fact that you thought Mil County had written out um mobile homes or single wives from being put on there. And so I was I've been reviewing through the code again just to make sure it does look like so manufactured homes um manufactured modular homes could be single wide or it could be a double wide. It's the code section is written like a lot of other counties in the state where it's got to be converted into real estate, right? You can't use anything pre the pre HUD days. Those are written off you can't even touch them. But if you have a modular or manufactured home, as long from what I read in here, as long as you set it on a permanent foundation, then it's and remove the axles and the tongue, it's fine to be set on there. Um, and could potentially be utilized as an ADU when these code changes go through. Mobile homes are also listed out in Mills County, and that's a foundation.

Yes. Permanent foundation. Yes. as long as it's set on a permanent foundation. So that's not the same, right?

But then the mobile homes, if you want to leave the axle and you're going to leave the tongue on them, then it's they're be placed in mobile home parks on there. But because if you're looking strictly at on like a building code aspect side of things, you're you the tiny home craze that you have your minimum house that you 270 square feet when you add up all the livable areas that you need. You have to have the space of 270 square feet to consider what a dwelling would potentially be. 270 square feet. I thought it was minimum. So 10 by 27,

right? When you when you start looking at the space needed for your eating, your space for sleeping and sanitary, those minimum spaces when you add them up, it's 270 square feet. Because when when we passed the ordinance back in the day, Steve Boomer came in and he was replacing his single wife.

Yeah. and he was just furious that we built him out of being able to put in single white. Now what your definition Matt you're saying and maybe his definition and your definition was maybe it was interpretated differently than how you're interpretating it but he had to go to a double wide to put his house back in and they wouldn't allow him to do the single wide back in hollowo back in the day. So, I don't know if he was trying to put the skirting around it or he was trying to replace it, but but the previous administration

before I got there took the square footage of a single mobile out of the the outlaw made it bigger than what the single white is. So it had to be another they sold them out and that was yeah because maybe they're so maybe I'm looking maybe we're looking more of what somewhere in there if they got a minimum square footage either is or was changed today I tell you today he's glad that the law was in place because he would like to have a little more space listed 320 in I was So

body feet are more in length. Yeah. 320 or more square feet. Build on a permanent chassis are designed to be used as a dwelling without permanent foundation. I thought we said you could not replace with the previous supervisor said we don't want those. I just remember that. I haven't read the I haven't read I haven't read what you're reading but I do I do remember it was a scuttle

and then along with that code so then along with that code section I provided you just a draft of what the accessories ordinance will look like and it and that will just that ordinance will go to the board of supervisors for their changes based on state law change I know we're going to make sure going to get her everything so it'll sometime in November when that part goes to the board of supervisors and this is it's going to add a definition of what of what an ADU accessory dwelling unit is and then it's going to change the um use matrix table for two family residential where right now two family residential is marked out as conditional use where they'd have to go to the zoning board of just get a conditional use permit in order to be able to do it And uh just based on that state law change, it has to be a principal use.

Yeah. So we'll change that conditional to principal use.

I would make a motion to journ on the record. Davis, thanks for joining us tonight. We appreciate it. Yes, thanks for having me. Um, Audrey, could you send me a uh email that map that was handed out? Absolutely. Okay. Thank you very much. Thanks, Davis. Yes, thank you. Thanks for having me. Bye.