Community Development Authority - Regular Meeting

call to order the community development authority meeting of Wednesday, July 9th. Um, we do not need to take a role. And so the first order of business is the approval of minutes held uh June 11th, 2025. Are there any comments or a motion to approve? Move to approve. Thank you. Is there a second? Second. Mr. Chairman uh Colin uh the record should show that I abstained since I was not at the meeting. Okay. From the following vote in a second meeting. Okay. So Colin has seconded. Uh any further discussion hearing? None. All those in favor say I. I.

Uh the motion passes with one abstension. All right. Getting on to the uh meat of the meeting here. Uh, number two is discussion action on a funding request from the Whitefish Bay Business Improvement District, otherwise known as the Merchants of Whitefish Bay. Kelsey, do you want to kick us off?

Yeah, that'd be great. Uh, so the two agenda items this evening are both focused on the end of the expenditure period for TID one. So, they're both connected. Um, but I'd like to, um, start by talking about what that means, walking through the cash flow documents, and then, um, Bid is going to present because they had an earlier hard stop. um before we go through all of the items that I outlined in my memo. Um so to start the extend expenditure period as I mentioned before ends on October 20th of 2025. Um so what that means is that any expenses that we anticipate wanting to use TID 1 funds through the end of the TID which is in 2031 have to be formally allocated prior to that date. So what that means is we need contracts in place, escrow accounts, like the actions have have to actually take place prior to that October date. So the point of the discussion tonight is one if the CDA is of the mind to approve the bid um request they could do so and then for me to also get an idea of of the remaining funds what would you how would you like to see those dollars spent so that way I can start that groundwork and we can have additional meetings more focused on those items. Um the only exception to that requirement to have the funds formally allocated is for professional services. So expenses like legal um our financial advisor Ellers any fees that we have to the state that are related to the TID though the funds can still be used for those purposes and we don't have to take formal action ahead of the closure um for those areas. I did ask um Ellers ahead of the discussion tonight to run two different cash flow models and so I just quickly wanted to walk through those before bid presented because if I was in your seat I'd want to know how much money do we have before we start talking about how do we want to spend it. Um so the first cash flow um document is on page 10 of your document or of your packet.

And so kind of just starting from left to right and you're these look familiar because these are similar to the ones Mike has run in the past um for us as well. But in terms of revenues um we're anticipating 692,000 annually um through 2027 and then you see that drop to 640,000. That drop is solely resulting from the demolition of Sendex. So if you remember how TID 3 was drawn, we intentionally excluded the existing Sendex building. And so when that building comes down and will um eventually potentially be a parking lot, then that means there won't be any value on that property. And so the decrement is actually within TID one that you're seeing in the um blue column that shows all of our outstanding debt through the closure of the TID. Uh and then moving continually to the right uh we have a development agreement with Stone Creek to pay them $20,000 annually through 2031. The administrative expenses are estimates um 35,000 is what we've historically um utilized. However, whatever action if our intention is to utilize all the remaining funds, then we'll want to write one of the final agreements as such that if there's additional administrative costs that those could be captured just because at this point those are those that 35,000 is just an estimate. Um, and so then moving um, off to the right where you see cumulative, you'll see at the very bottom um, kind of best case scenario or all of the funds that have been allocated to date show a fund balance at the closure of the TID of $2.8 million. Now, the second cash flow um, example, which is page 11 of your packet, is probably more accurate and the one that you want to be looking at a little bit closer. There's two major differences between the first cash flow and the second. The first major difference is that we've included a U municipal

revenue obligation um for Sendix, which is to offset some of the public improvements that are necessary as part of that redevelopment project. So, you see that in the geo bond column that's kind of like pinkish on my draft. Uh and then also we've included $60,000 annually for bid because historically um CDA has contributed 50,000 and then last year 60,000 to bid. Um so to be able to show continuing that forward. So in this cash flow scenario under cumulative you see a fund balance at the closure of the TID of 402,000. So I would say realistically you have about 400,000 to work with and then you can exclude 60,000 annually of the bid request because that's already in the cash flow assumption. Are there any questions with these cash flow documents that you want me to answer? Um what's the on on the sort of the things that matter the revenues

are there is there any uncertainty and is there anything that could change those numbers yeah um how do I think how should I think about that yeah no that's a great question so you'll actually see a little bit of change well yeah a noticeable change from um 2024 to 2025 that decrease was actually when the revaluation happened and so yeah those numbers will fluctuate They're intended to be as conservative as possible. Um, meaning that it's showing like zero valuation growth, but the reality is it will end up being different. Yeah, but that it's it's just on the valuation. Is there another revaluation that's going to happen with within five years? Three to five years.

Um, there will be another one that will happen, but also valuations within the district will likely increase too. And so it's a little bit offsetting.

Okay. Yeah, it's just a projection. My recommendation would be that one of the items be essentially like a cash sweep if you want. So there's a there's several of the options that could be that or we could structure them in a way that if the goal is to maximize the funds for the use of the betterment of the district that we would write in a way that would allow that. Okay. I think just one other piece of math is um the difference between uh the first table and the second table is 1.7 million for the MRO's plus 60,000 a year for what is that six years? Yeah. Mhm.

So it's 360,000. Okay. 360. So that's just a little over two million. Are we $400,000 off? Um because I don't think you're counting the interest for the Ascendix MRL. There we go. That's it. That's what I'm missing. Okay. Yeah. Just talking out loud to work through what are the differences between the two. Um so I think that you're Is that all you wanted to do to set up a conversation with the about the bid?

Yeah. So then, um, to tee up the bid a little bit more, um, I had asked the bid actually several months ago, but with all the development work that's been happening, um, I didn't really want to move forward with this conversation until we were a little bit more certain about what would happen with Fox Bay and Sendex. Um, but we're in a better place. Um, so now I've asked Bid again, so thank you for your patience, to bring forward a proposal that would get them through essentially the end of the TID, which is the 2031. And so I've asked them to consider that entire time period because the reality is they cannot come forward next year to make an ask. So whatever is decided by October of 2025 that we will actually have to put in a contract with bid will be the final dollars that bid will receive from TID one. And so their request is intended to encompass that. Does that make sense? So we'll have an agreement with

coals in it. That's all. Yeah. Go ahead. Yep. Um, so that that is what they've been charged to do this evening. Um, and so with that, I'll I'll hand it over. Is it to Charlie? Are you going to speak or Lexi?

Need bigger table to speak into this because there's someone on Zoom. There's nobody on Zoom, but we're recording it. Got it. Okay. Um we are back. Um

CDA, thank you for uh allowing us to come in. um as we've been coming back on an annualized basis I think for the last maybe four or five years uh we're now to the point where we were I think is a selfishly as a bid we would hoping to be um and we would like to continue the momentum of what you've graciously provided us and we think we've been good stewards of of the economics uh and the financials you've provided us and how we've navigated ated that. Um, so we're coming forth to be honest with you with the exact same ask we came to you last year. It's $60,000 till the end of the TID. Uh, we did provide an additional uh proposal for $23,500 for capital expenditures that you know if you needed to spend $25,000 on the street within the business district, how would we do it? So, we put forth that in the proposal above and beyond the 60,000 that we asked for through the closure of the bit of the TID and um we'd be happy to answer any questions or provide any clarity that you might be seeking.

Sure, Nick. Thank you, Mr. Chairman. Um, yeah, I think you've answered my question, and that is the the the additional $23,000 worth of kind of specific projects that that is over and above and in addition to the $60,000 uh regular payment, right?

Okay. Because that I believe is not reflected in the in the cash flow that we just looked at. That simply reflects the 60,000. And then just one other kind of question in each of the uh specific elements there's a lot you know you have the estimated cost which is always you know a number and then it says plus tax and shipping. Why are you paying t property tax I mean real estate tax. Sales tax. Sales tax. That's what I meant. Sales tax. Aren't you a 501c3?

No. the village could buy it and make they'd be except because that's, you know, $1,300 probably that I'd rather spend on Silver Spring than sending to Governor Ivers. You know, the the other little pieces, and we could probably discuss each one of these in sequence, um, is a generator for the art festival beer tent. Um, I know the DPW has a generator, although I do not know how noisy it is. Yeah.

Well, and then it's, you know, who where are you going to keep the generator and is I mean, or should it be a DPW generator? You know, like we we we probably would get more use out of it than, you know, the five events that you guys go ahead. I think microphone real quick to answer that though. Um, part of it was that in the instructions of preparing this, we knew we needed to have line item requests that were itemized in order to justify the spend that was spent within the district. And so our thought was

if the bid gets the generator and oh my gosh, the civic foundation uses it for something within the district. I think it was more of a legal ease of like it's within the TID, the money can be spent within the TID and the village as a whole probably could use the generator and it just so happens that the bid owns the generator and the bid is happy to utilize the generator. Long as Kelsey's good with it, I'm good with it. Yeah, if that makes sense of how that was structured the way it was.

There's also a bit of inside baseball with this with cash flow. So, we're actually tight in year one with cash flow. And so, the way we'll end up structuring the agreement will allow them to end up being whole, but they could advance by some items that if we as the village were buying would make it a little bit more difficult.

Yeah. on that particular item. Uh I just happen to have a an offer that I could make to the bid for your consideration. And that is uh for reasons that are no longer valid, I acquired I purchased a brand new Honda portable generator a year ago and uh I don't have a lot of use for it. I'm happy to either make it available for your use or consider a donation. So

generator and I would just share that the bid or that the that DPW does have a generator and it runs very very loud by the kids area for a number of events and we can't have it on the street next to any of the patios and based on the logistics and layout for a number of the events that's why we're looking at a specific generator that runs clean and runs quiet and so it would obviously be able to be used for a number of different events including Fourth of July and this is supposed to be one of those.

It is one of those. Yeah, I had um our resident bid consultant who does construction give us some options for this one and um also had DPW look at some of these as well to make sure that these item line items were ones they would select as well. And obviously if you approve these, we will work with DPW to select the correct items and based on storage and different needs. Anybody else have any generator related? And I I'm I'm uh kind of looking to everybody to say does that sound like a good use of TID money?

I mean I guess spec this isn't necessarily specific to the generator but to all of these a lot of these are will require maintenance and replacement and things like that. Do you guys have the budget to m to maintain them?

Yeah. So actually to speak to that we have rented and so has the civic foundation rented a number of these items yearoveryear. So this will allow us to kind of save those savings. We expect this to be a three-year revoling. So we'll be made whole in the 3 years, but we do know that we'll hold those funds in reserves so that should we need to reenter, we can. But this will allow us to to utilize this and it also allows us with the growing events to have some infrastructure support that we don't currently have. For example, one of our events last year um Halloween has a little bit outgrown the capacity that we originally saw and there were some safety constraints. So if we are in possession of our own security barricades for that, we can grow these events a little more organically and be a little less limited by budget or availability.

Do that financially as you advertise the cost of the capital expenditure up front. And if you am advertise those costs over what you think the replacement years would be, then you are basically force savings into when you would need to replace the item in year three, four, five, 10, whatever it might be. Long as you have the cash flow to do it, right? I mean that it's it's a it's a cash flow thing, right? Yeah. So, as long as you can we feel very comfortable about our cash flow position. Yeah. Okay.

Uh one thing I noticed is that almost half of this 23,000 and change is for these portable, collapsible, foldable picnic tables. Is do we need $12,000 worth of picnic tables? I think that this let's go back to something that the CDA considered two years ago and that's around making public spaces um what was that term activating public activating public spaces but there was a a um add vibrancy there's a bunch of there was a buzz word placemaking thank you

the goal of it is how do we activate Silver Spring in a way that instead of just closing down the street it's how do you create a gather gathering spot that feels like a gathering spot and not a block party. And that's key to making Silver Spring a vibrant district and allowing us the ability to move infrastructure in to make it more placemaking ability instead of just putting up barricades and hope people sit on the curb. Um is kind of like our thought process as we think about welcoming Argo and welcoming in some of the other new retailers that we expect to bring more traffic and vibrancy to the street. I think the largest number we rent for an event. So that's certainly up to discussion, but then that would cover every event that we currently rent those products for.

I also would just like to add because I added a decent amount of expense to this, which I appreciate the bids consideration, we currently are having to haul large picnic tables to some locations. So the the night evening farmers market is an example where we had to take them to the Aurora parking lot. Taking these large picnic tables individually is a significant amount of staff time and causes some issues for the Aurora lot as well which we obviously don't want to be causing for them. So this this structure that these picnic tables are shown within would allow us with a skid steer to be able to easily pick up and move and they can actually lock the picnic tables overnight. So after an event, the volunteers can collapse the picnic tables, put them away, padlock them, and then Monday morning, first thing, our team can come in with one person, one piece of equipment, pick them up. Um, so would offer a lot of enhancements uh for us operationally as well.

Well, if it makes Kelsey's life easier, then it's got to be I appreciate you. Thank you.

The other thing to consider, too, from a a bid standpoint, um, a lot of what we are asking for is in line with what most bids already actually have. And so one of the struggles that we've had as a bid is like we've we've bootstrapped a lot of things to make the district what it can be and what it should be for events. But if you look at some of the major bids within southeastern Wisconsin, they have a lot of these infrastructures already in place. And so we're just trying to get to what would this is probably not the right term, but it's a term that's on the top of my head. It would make it a legitimate operation. Um, so those are some of the things that we think about from a strategy standpoint.

Just one other thing and then I'll be quiet. Um, the there's a kind of a blank here too that you've got a a request for lighting improvements um with with a note that you're you're going to request or you have requested a a quote from David J. Frank. Yeah, we actually have three different firms that we're getting bids from. The the the idea is uh we did a as you've probably seen Christmas light wrapped um right

light post uh which worked out well for a couple years and then they degraded and so what we're looking for is a upgrade to that. Um we just don't have I think some of these firms are in their this is when they make their money uh this time of year certainly for David J. rank. Um, and then we have two electrical companies that we're also getting bids from. So, it's coming. Um, we just don't have it yet. Do you Well, then do you have an order of magnitude guess? It was five.

Yeah. My my gut I I I could just give you my gut. um is or the idea is on the top of these light posts, not not the crown part, but right underneath the crown part could be two uh LED lights facing down. Uh so it would be downlighting uh the posts themselves. Um secured and using the 120 volt plug in on the top or or next to uh that cost. I mean, I'm not sure. I mean, my gut would be it's probably a couple hundred bucks each installed and we might have 70 to 90 light posts. So, that I mean I it's something to that effect. I mean, we did 67 light post banners on this last run of banners that we just did. And I know there are more uh polls than that. So,

so this is going to get to be another easily 20,000 25,000. Yeah. I mean, I I would say in terms I'm just trying to get some foggy idea of Okay, let's just put a number of 25,000. Um, I think for us, we look at priority one is 60,000 through the closure of the TID. Priority two would be the $23,500 for a few capital expenditure items. And um you know the grand scheme of things of your total overall budget that you would look to need to itemize by October, we can figure out and I'm that's probably priority number three for us. But if if you needed a number

in your ideal world, the the the CDA would grant not only the 60,000 a year for the next five years, but also one time 23,000 and change and potentially another 20 to 25,000. Yeah. I think, you know, if you ask me my perfect world, Yeah. Yeah. I want a hund you know, whatever that number is to be, I want all three. And I feel very comfortable in saying I think we've been very good partners and very good stewards to the district. Question that at all.

Um not saying you are. I'm just saying, you know, if I had a perfect scenario, yeah, we would love all three. Um I also recognize that we're trying to help you spend a little money by October. And I would rather it come within our realm of how we do that. the the last slinging project which dates let me see if I can find the date quick back to 2021 was 5900. So you figure with inflation maybe they'll have some capabilities of like theory there's green and gold line the street it's Christmas

sure this this is our answer to light the homer's comr is hoping to be able to light silver spring well you know indeed one thing that was eventually going to come up and and that is that over the years the CD PDA has frequently spoken of um allocating funds not particularly to the bid but but just to the village to execute projects for beautifification and placemaking right um if you recall you wouldn't but uh fourish years ago we had Grafe come in and they gave us a whole menu of things we could do for beautifification

um that some of those tiny bits of those projects got done like for example um Council Commons has the fon lighting. Not to mention the sale. I'm not sure if the sales were part of beautififications or if that was but like the water fountain in front of Sundex. More bike racks.

That might have been a DPW. Anyways, um you know, we we had frequently allocated funds at the you know, in October for budgeting purposes saying, "Hey, let's spend, you know, the last time I think it was 50 grand on beautifification." Um, I I like the concept of having the bid responsible for for that. I mean, they're you know what? You know what the CDA is going to do? And what we always did, we always turned around to the bid and say, "Hey, what do you guys think about beautifification? Let's get something going." I I think the, you know, putting money on in their pockets to be able to execute that. Um, I love lighting. I I you know that that is definitely a beautifification thing that we have frequently said yes to. Um and so I'm I'm I'm good with

uh whatever you come up with from you know a lighting perspective and and it clearly the the lights that you're suggesting may be much longer lasting than your basic Christmas lights that you know one light busts out and you can't turn them on anymore. Um, so yeah, go. In fact, I I would say come up with with some other options. Come up with some expensive ones that are like, "Yeah, this is cool. It has lasers." Because I love lasers.

Um, and maybe, you know, if it's cool, then uh there's there's various downtowns across the country that have light shows. Not that I'm saying that we ought to do that, but just think out of the box and maybe you can convince us. We can do that. I mean, I'll tell you the number one thing, the streets fully full, everything's locked. Um, I think we have really solid activation, and Halloween's a great example of we have a problem where we have too many people on the street, which I think is the best problem to have.

You know, I came in here a few weeks ago and made a somewhat controversial statement that parking is an exceptional problem to have within a district. Um, these are all good things. And we're looking to create investments into the number one thing we hear from now. Now that everyone's really happy with activation and the street is full and that we're getting someone's going from Navy KN to Yellowwood to Jay McGofflin and then Edie Bouquet. Yeah, Edie Bouquet coming is how do we make the street more beautiful and how do we enhance the street and make it more attractive? I mean that's the number that's all we talk about now. How do we make the street more attractive? So these are good problems. Yeah.

Yeah. And then um I mean one question you might have is all right 60 grand for the next you know seven years is great but eventually that's going to go away and kind of what's the plan on replacing that. So one of the issues that we identified is that there's a cap on the assessments to the real estate holders on the street. And right now, I think when I did my analysis, 55% of the square footage on the street is actually capped out. So, we just did a there was just that assessment, right? And you'd think our revenue would go up, right? But it didn't. And a lot of that is because of these caps because most of the people that got reassessed, they we didn't see any additional revenue from. So, we've never upped that cap since it was originated. we will start upping it um 250 a year um to about 5,000 um cap and then we also have additional room if we need to um our assessment is quite a bit lower. I don't know if you want to speak to some of the other bid.

So we volunteered to work on this with WEDC and we looked across the state at peer bids and did an assessment review on our rate and we are lower than market against our peers. So we do have the space to grow our individual rate should we need to beyond increasing the cap.

We have presented to membership at our last annual meeting and then did have a bid item on our agenda to walk that through. We're also fortunate that a significant amount of the real estate holders are also sitting on the bid that benefit from the cap. So someone like Mr. Mr. Bastra is aware of what our five to 10 year plan is with the revenue models and how we would address it and understands the impact it would have on him and his business. Chairman. Yes.

I I really appreciate you addressing that question because it's been one that I've raised the last couple of years and uh you know I'm I'm in favor of the $60,000 and I think it's being well spent, but my concern has always been what happens when it goes away and I wasn't seeing much progress in relationship to what you just talked about. So I'm happy that you're really getting serious about that. That's great. deadlines spur action.

Yeah, I know. On the other things, uh uh generally I don't have problems with any of it, but uh one just fleeting thought I had about the fencing as an example was that just that seems to me that maybe is the kind of thing that uh is a public safety requirement that the village ought to be considering in any event. uh whether it's, you know, funded by the by the TID or not, uh you know, it's it's a good idea to to have access to that stuff uh for these kinds of events. And I think it's a responsibility in fact of the community to provide as much protection and safety as possible. So whether we had that money or not, I think it's something the village should be considering.

Yeah. I just to I I think the um origin story of all of that would be the Fourth of July parade, right? That's the biggest parade and it has, you know, 10 12,000 people watching and I think at some point 101 15 years ago the civic foundation who runs the parade said we need to do this. We need some blockades and and I think they just stepped you know they're coming up with these concepts and decided we're going to spend the money to to rent these things. Um having them in house is a great idea. You're completely right. I think it's just it's it's it's it has been tradition that we've rented them.

Yeah. And actually to add to that, we've encountered when the Bucks had their finals at the different time of year, we actually encountered that these are impossible to rent. You can only rent them from one location and they needed them at Fiser at the same time as we needed them for Fourth of July. So, this is also valuable to have access to them based on our events. Because if they are unrenable, can you imagine our inability to safely secure any additional needs for a parade route or for an an event that's bigger than we expected it to be? In addition to the changes that we're going to see with the Argo on the street, we like the ability of having a way to flow traffic should that be necessary, right in the back of our, you know, right in our back pocket.

And the the DPW is good with storage. Yep. We talked to him. In my mind, it's just a question of it's not a question of whether it should be done. It should be done. It's a question of whether it's funded through this vehicle or through the village and not funded by us and it's funded by the village, that's fine. It's a property tax thing. If we fund it, then uh it's something that we're doing that we can't do elsewhere. That's all. There's a trade-off somewhere. I I think the argument would be that I think all of these are used on Silver Spring and then Blake. That's it. So like they're all used within the district. I don't think we use anything anywhere else. Yeah. So I mean what about up at Colon or for the Fourth of July par?

We use the Jersey barriers up there which which the village does has purchased and owns. So I think that when I saw that I'm like okay they're all used on Silver Spring. That's they're all used right in the in the bid area. And that's, you know, typically when we put a new garbage can or maybe I'm speaking out of turn that that was a bid expense because it's, you know, improving the bid district. Yes. The other thing that I had not thought of until Lexi brought it up is there's a bit of an unknown with the Argo and as a bid

from a constituency standpoint if there was ever a need to control a traffic because let's just say they hit the home run with some concert that all a sudden brings all these people in and we have to be able to manage traffic flow in some way. At least as a bid we can keep constituents happy in that way that I think is kind of forward thinking. But is that a bid responsibility or is that a police department responsibility or a tenant or a tenant responsibility? Yeah, it it would be an Argo responsibility. Um but it's correct for bid to point out that if if it's difficult to acquire these, they've sold out a tournament or a concert that the artist has already scheduled.

There's potentiality that that could be very difficult um for everybody. And so I I think at the end of the day, the reality is we know there's only one vendor that provides these. We have very specific dates as a community for some of these events and we don't want to have to cancel them and tell the public it's because we can't acquire pedestrian fencing. Knowing that this is a $7,000 item and we have uh 40 minutes left on our clock. Yep.

Um are there any serious uh objections to these items? The the only other thought I had is on the 60,000 if you actually have a plan to to increase the cap, right? Keeping the total the same but showing a decrease in the so showing a decrease over year, you know, year-over-year based on how much you expect to generate and then have a separate item of beautifification projects that you could take that money and use it for. Right? That would be that's a good idea. So the total would be 60,000. So it's the same amount of money, right? And maybe it's more money. Maybe you want more money. I don't know. No,

but but you're it makes it a little clear and it makes it sort of it may make it clear to your constituents that that 60,000 is going to go away over time. So you have to do that, but you're going to be able to also like you're not going to be you're going to be met whole and you can use it for other things. Does that make sense? So would we be basically suggesting we would kind of restrict those funds whatever we're getting in additional revenue every year. We'd restrict those funds to beautifification. Yeah. Okay. Yeah. I mean that we can definitely do that.

Yeah. I mean basically it's like okay you have a set of things around the website and outreach and that number goes down year-over-year as you increase the funding from the thing but then you end up with more funds that you could allocate specifically to beautifification or other things. Yeah, it's definitely a possibility. You want a motion? Uh yeah. Kelsey, what what do you expect here? Do you want a motion for items one, two, three, and or and five? Five. Yeah. Yeah. Is that make your computer easier to use?

I guess the first direction. So we Chris and I will have to draft an agreement in partnership with the bid that will end up having to be approved by the board because it exceeds the dollar amount. So my first question is does the CDA want that agreement to come back or are you comfortable if that goes straight to the board? So that's one question because village board the village board because it exceeds the dollar amount but only because it's over 60. Yeah. Okay.

So it has to it has to be approved. Think of it as like any development agreement. Um and then the second piece is um yeah the motion could just include you know the to approve the bid request with an allowance up to a certain dollar amount for the lighting and once we get that final quote we can incorporate that in. So first do do you want this to come back to the CDA? I I think I don't I don't think we need to I don't think so. I don't think so. And then second was simply I guess we just need a motion for we're just so the motion would be to recommend to the village board.

Yeah, it almost seems like it's two things. One is a motion for number one and second is a the capital purchases coming out of the CDA, none of which are more than 50,000, right? Or do you do you want one motion for everything? Either way is just one motion for the naked one. Yeah. Right. So, I I would move that the CDA recommend to the village board approval of uh $60,000 a year um payment to the bid uh for the next five years through 2030. 31. Um and 31. Yeah. Six years. Yep.

Okay. Um and that we uh additionally recommend uh approval of the uh items numbered two through five in their memorandum to us uh totaling $23,500. Thank you, Mr. Chairman. I'll second it with with one additional copy. You got a wreck already? Uh yeah, I I got to just leave you alone. Um, I would just ask you to consider my offer on that generator. It's only a $1,500 item, but hey, it's a brand new generator, and I think it's exactly what you're looking for. We'll take the generator. All right. So, let's talk. Yeah,

we got it. We'll take the generator even if it means we have to buy a second generator. Well, we're going to get into the generator uh rental business. It's as long as they're Hondas. I've got a Coleman. Those are the ones you can't. We We'll take generators. Can't hear it. Okay, Mr. Harrian, I'm I'll be happy to pick it up with my pickup truck. We have motion and a second with an offer. Uh is any further discussion board? the the only question is the idea of ratcheting down the 60,000 a year whether you want to

so that so I think what you were suggesting was keeping the the dollar value at 60 but their internal allocation was going to yeah I I think I think more specifically what I was thinking was you actually just add another line item to this right you have the 60 changes and then you have another line item which is a catch all for beautifification or something that r ratches ratchets up over time. That's how is that internal or do you want that to be like a term sheet item? Honestly, it depends on I would I would be more comfortable with it as a term sheet item just because I would have more confidence that you will then increase your spend and you're not going to seven years later be like we need more.

We can't come back in seven years. So it for us to it in 7 years for us to be viable with the 60,000 that we've been given uh at the rate in which that we are doing these things what we'll do is we our constituents will create an expectations of what we've delivered on and if we don't figure out our revenue proform over the next seven years what we have here a lot of would go away and then we'd have a bigger problem on our hands. So part of it is is what we've been doing the way we solve that problem without getting too much into how the dollars are shown on an itemized balance sheet is the constituents are going to say well wait the artfest is going away and the marketing digital marketing dollars are going away and so that's how you you know you ramp it up. mental note there. We we've had good budgets from them. Like a year ago, we had we probably should have been in this packet where you would have seen exactly what their spend is.

I haven't seen that. So I don't Yeah, this is this is 10 or 12 years. Yeah. Not doing this exactly, but I mean we're not going anywhere, but we're we've been as far said, so we're going to make it work for the merchants. Yeah. Look at that. I'm not I'm not concerned about the money. I'm just it's just a I just want to make sure it's sustain sustainable. Yeah, we've we've thought about it and talked to the key stakeholders who this would impact so that they're aware like Teddy's aware depending on if Mosh is a land owner in five or six years, he's generally aware this is coming.

Uh and then there's, you know, again, it's there's not a lot of land owners who own the 55% that this impacts. So, it's probably four or five key players. Just a point of clarification. Did the motion include lighting? It's not. Or did we not? I think that's something that the intent was to include it. We had about 60 grand. But sheriff, city likes,

that's right. We we um my understanding of the motion was that there was going to be $60,000 as requested and then these other items added up to 23 and change plus there was consideration at the level of about $25,000 for this other lighting. That was not part of the motion just to be specific. Um is it is there a problem with May I make a recommendation? was thinking that they when they get the green numbers in the waiting. All right, why don't you do three motions?

The 60,000 because that's the one that has to go to the village board. You all can approve the 235 for a second motion that would not have to go to the village board. And the third motion would be 25 up to 25,000. That would not also have to go to the village board. Why don't we wait on the last one then? Yeah, I'm Why don't you get the quotes and That's fine. As long as we do it by October, yeah, we should be good. Otherwise, I think but if you separate the motions, then you don't have to go to the village board. We we got we got a motion that covers it all. I think I think we're covered. And and so I we I was under the impression that we would sometime in the next four months you'd come back and say we've got a quote and this is what it's going to be. Okay.

And if we have to go consent and you all don't have to come. It's just Lexi. The other thing I would add is that you guys seem to be kind of in charge with placemaking now as as a board. I would have you think think about, you know, what potential items could be donated. I mean, on that list of X, Y, and Z, maybe you have a list of 10, 20, 30 items. You know, people come to the village all the time for ideas on different things to donate. A lot of times that becomes trees and benches. I think that could be something much cooler as a part of either either a part of the list that Grafe had or if you as a bid have any other ideas that you could add to that list. I think it'd be helpful to share that with the village and when people come forward and ask for ideas, you could say, "Hey, here's our list of ideas that we we would like to."

So, pending on the outcome of all these motions, our next move is we are basically at the end of the rope of our latest three or four year strategy plan and we have some work to do this fall to think about a reimagined next three to five year strategy plan. And that's like priority number one. Perfect. uh we just were waiting on the outcome of what this looked like before we could identify what the financials looked like for us to achieve a strategy plan. Okay.

Well, one of one of the items that's on Kelsey's wish list uh on the next item on the agenda um is an update potentially to the comprehensive plan or the Silver Spring plan or whatever. Um and you know all of those kind of work together if we want to go down that road. We have a motion in a second. Right. Uh uh and and just to reiterate uh it is one motion uh to uh send number one to the village board and two three four and five to be paid by the it will end up being a contract because of that cash flow piece. So it all of those one motion all of it will be in a contract.

Perfect. Second. Uh we have a motion to second. Any further discussion? Hearing none. All those in favor say I. I. Any opposed? Motion carries. Thank you. Thanks guys for being great partners. Okay. So yes, your your homework would be get a quote on lighting and come back. Y we'll allow Kevin to light lasers. Lasers. All operated. Fog machines. Fog machines are always good. Um drone show. drone. Nah, we don't need a drone show. Uh, all right. Uh, I really like a drone show for the whole

probably probably. I had a lot of kines like that. All right, moving on to item number three, which is discussion action on final spending and fund allocation for TID one. And just a reminder, we've got 28 minutes.

Okay, so I'll be efficient. Um, so I am starting back here on page eight, uh, which is just kind of picking up the first part of my memo I already talked about, which was the cash flow and that, um, TID one is closing. So, what I did here is I since I've been here, I've been keeping a list of ideas that people have mentioned with TID one closure and I've just outlined that list. So, nothing is prioritized. It's just the things that I've heard um that the funds could be utilized for. And so, I'm not I'm not looking for a motion this evening, but it would be ideal if I could get a level of direction if there's a few of these items you're thinking that we should move forward with so I can start doing work in formalizing. Yep. We got an interruption right away. No, I'm just when she's done I want

Oh, yeah. Go ahead. I want to be the first to talk. Okay. In the queue. So, all the items are outlined in the memo. I'm happy to run through them or we can just start discussion.

Why don't you just let us go ahead what what you want? I think she's kind of we're going to go through each of these bullets. Whatever you want to do. Did you want to make a a comment on a bullet point or overall? Yes and yes. Go for it. Okay. Floor's yours. Well, I mean, all of these things uh are are laudable things to do. I guess uh putting it into context, uh the dollars that are available. We talked about there's the $42,000 that are shown on the last spreadsheet that's in the in the document here, which is I think where our starting point was. We've already chewed up about 60 grand of that.

No, that was included before. Only the 60,000. Only the 60. 23 23,00 There's another 25 50 to 60 in play here that I that we probably have made a commitment on and Yep. in theory. Y that's so we're now down to about 340 is is the balance as I see. Mhm.

And so I'm just going to make one more pitch on on something that I've been talking about for a couple of years and and that's just and I'm not married to this so I mean uh my feelings aren't going to be heard if we don't get end up doing it. I wanted at the time I made the suggestion to have uh an opportunity for the CDA to be able to make a difference in an ongoing way to have the funds uh in some form or another come back and that was you that was the concept but behind the revolving loan idea. I know it involves administrative work and and some some ongoing process here. Uh but uh it's it's one way that uh you know you have at least something in the toolbox. Now we have since that conversation started uh there's a whole another realm of things that have opened up to us with this tax increment district number three which wasn't on the horizon before. And maybe that's going to generate some additional uh opportunity like TID one did. I don't think it's going to have the scope necessarily that TID one did because of the fact that it's smaller and uh we're not sure how that's going to play out in relationship to the cash flows that we're designating. I think we're going to be covered clearly well within the framework of the life based on what we're committing to, but I don't know how much more margin there's going to be in TID 3. So my point just being that u I was hoping we we'd do something that was sustainable. That' still be my number one thought. My number two would be uh the concept of having the monies dedicated to the CDA so that additional development incentives could be allocated as they arose. My my fear there is that uh we'll be back where we started from, which is having people come in and the money will be gone in in a heartbeat.

U and I and I just I'm a little concerned about that. I mean, the other thing that came to mind in in this concept of the revolving loan was that uh you we've seen a couple of instances where we've had some businesses that we've allocated a reasonably significant amount of money to. I mean, in the $80,000 range comes to mind, i.e. uh trouble and size. And uh they did, you know, end up having not to to cease business over there. uh but they did it just after their obligation was to to repay the funds which uh understandable but uh you know at least with the revolving loan I I think you have a tail there that would if they uh it's not going to be forgiven if they go out of business they're going to have to meet that commitment and to me it feels a little better that's all

so to I just to make sure I understand the idea behind the revolving loan fund is CDA would actually be the bank. We would loan the money. Yeah. And get the payments back at some interest rate. Yeah. Have others administer it. But Yeah. And someone else have to but we should be the bank. But if we But we couldn't do that under say the donor TID example. Is that option? Is that correct? Well, the donor TID is a little different thing because you'd be donating to in this case taxment district number three. Uh yeah. Now that is a smaller footprint. So that's a different whole different group of people that you'd be meeting.

But that's a good point though. Couldn't Couldn't you in theory if if we couldn't come to a conclusion about this in the next four months? Could could we instead go to donor tid 3 and then have a loan fund out of donor tid 3 uh tid 3. Is it your scope though who you could loan to much narrower? Much less a half mile much smaller area that you much narrower. But if we're going to set up the donor tid system, we're already out of time. It's a three-month process. You need a joint review board, all those other kind of things to get done uh by early October.

So to answer a few questions, um Mike Dwire is correct. The district TID 3 is smaller than TID one. And if we created a donor TID with TID3 $3, we would have it would have to be for the purpose of TID3 businesses. So I did confirm that with Ellers and our auditor. The only way around that would be to amend the TID 3 project plan to add in the halfmile provision which then at that point you're I mean you're creating that's the same process as the donor TID. Um and then the other question is could we create a donor TID by October? The answer is yes. I've had Ellers sketch out a schedule just to make sure we could meet that schedule, but it's not we don't have a lot of wiggle room on that one.

You'd almost need an answer today. The other argument I would make there, Mr. Chairman, is that you have uh you have funds that were generated from increment from the entire district in in tax increment district number one, right? Why shouldn't the monies be available to benefit those people that donated the money? Yeah, I'm I'm confused on the what's of what's what's available for the half mile possibility versus what's not. It's it's it's the stretch on the southside from Santa Monica to Bay Ridge basically. Yeah.

Um but so I've had to learn this as well. So within the TID 3 and TID one project plan, there's a section that's called half mile and any projects that are used or if we we have to we can only use that list for the it's those purposes within the half mile. So the the allowable workaround is to go to JRB and to ask for permission and you don't have to do a full project planned amendment. So for instance, if with TID3 $3 there was um a business that was complimentary let's say to Fox Bay and we see a lot of benefits and want to provide an incentive with TID 3 without changing it. We could do one JRB meeting where that project would be presented and if JRB approved then the funds could be used for that purpose but it would require essentially think of JRB as the extra half mile oversight. H how about uh going on to the funding the CDA CDA development incentives that bullet point. Um could could a loan fund be inside that?

I don't know why. I think it could. I don't see why it couldn't. Okay. I'm just I'm trying to like sequence this out as best as we possibly can if we can't get everything uh all of our ducks in our own. I mean, I guess just a broader question, what you have listed here, the master plan, the bike improved, pet improvements, tree kit, does that add up to $350,000? Like, could we possibly consume the 350,000 based on the stuff we have there? A few of these items are essentially clearing items. So, like the revolving loan fund, donor t just these specific things, the specific uses of funds that are on the table. Oh,

like I don't think we like we have to have a solution for the money at some point, right? So, yeah, the rest of the things we could sort of punt, right? I think that's the I'm not sure I understand your question. We So, as you said, we have about 350,000, maybe a little more depending on how the revenues come in. The we have until October, what October to allocate those. There's not enough stuff on the table specifically to actually be able to do that today. And so you have to come up with you have to ch you have to choose something between the the donor tit or the loan fund or the or the the CDA incentives like for some amount of it. I think in

you might as well do it all in that and then and then allocate it, you know, then we could choose these things separately, right? I think what you're saying is that if you did a number of these things, you would have scraps left over.

Um, you know, let's let's we can talk about each one. The silver swing master plan, $35,000. Now, that may or may not happen, but let's let's pretend it does. Um, skipping the loan fund, skipping the CDA. Uh I I would actually even skip the bike ped improvements because that's already enumerated in TID 3. Um streetscape enhancements. It doesn't have a dollar value and but who knows maybe the bid comes up with something. But then lead service line replacement that's 80 grand which I you know Kelsey might want to talk to whether that is a bid expense. You and I had this conversation.

Yeah. So on a lead service line, there's a public and private portion and so the private portion will end up being paid by the business. Um so it would be a way to reduce that direct business expense by doing it this way. Um but I've included the cost for both public and private and so perhaps the CDA would only want to do half and say they would cover the private. And you think that would be 40 and not 80? 40. Yeah. And this is an example of one I would want to look a lot closer at if the if the CDA was interested in it. do that. I I could see using it for the public portion of spring. You're right. Great.

Yeah, I think that was a pretty quick especially since the especially since the village government is not going to be doing any work for private laterals for residential. Why would we do it for business? Right? So I think that we're probably going to be all in agreement on um we would so so right away let's you know mentally note that that's not 80 grand it's more like 40 it's zero well for but the somebody needs to do the public side public should correct I agree I don't think it's a tid I mean we used TID dollars a long time ago for redoing Silver Spring and I thought it was a mistake

I agree interesting okay Yeah. Meanwhile, just as a comment, um all of the um the village portion of the Lake Silver Spring intersection was paid for by the TID and so that I mean that's infrastructure. I'm not sure what's were you would you say you were against that as well? I mean that that's a super infrastructure item. Yeah, that should have been the village expense. Yeah. Okay. 85 of what though? Because it was 90, wasn't it? 90% grant. Yeah. So, I mean, 85 was pretty close to the top.

Anyh who, I So, back to what Colin was saying, uh, if we did 35 plus 40, that's 75. All right, we still have 300,000 to do something with. When When we say we have 300,000, it it there is a timing issue. Correct. Um, right. it it it's not there in the bank today coming in either. So how how are we doing? I mean we can't spend the money up front unless we're borrowing from the village.

Yeah. So um let's take the the donor is the easiest because the state statute is written in a way that that money can just move over to TI3. So let's take the the CDA development incentive example. So, what would happen is the village would have an agreement with the CDA that would outline that this money is to move over to the CDA annually. Um, and we'd have to set a dollar amount and probably over anticipate that to make sure we capture it. Um, but I ran this idea past Ellers and the auditors and they both were in agreement that that would be the way that you would formalize and our obligation on this on our side would be to make sure we're not spending it ahead of you know. Yeah. You know, getting it knowing what we got,

right? That's kind of why I'm a fan of the CDA allocation. Um, give it all to this board. Yeah. Then we can deal with it, you know, either using it for short-term projects or long-term projects like a a loan fund. It's fine. I mean, I just I I've seen how we've been uh we've been giving money away hand over fist with I can't think of one project we said no to. Correct. Kind of correct. We played a little defense on some things, but

and I I think I think I think I'm not saying it's bad. uh because I think everything that we did was in good faith and I think we did uh at the time uh we felt that that business would make a great contribution to the community otherwise we wouldn't have done it but at the same time I I just think that we have a uh fiduciary responsibility to do the best we can with getting the most bang for the buck out of those dollar that's but what you would like to see then is a very long list of short-term and long-term projects that would well exceed the funds you have so that you can make choices, right? And you could say, I think these things are better than these things and we're going to go do those. Yeah.

And and what it sounds like is what you have what we have is a list of we got historically had is a list of projects that don't come Yeah. that don't consume the total budget and say you say yes to everything because we got somewhere between 300 and $350,000. That's not that's a it's a lot of money, but it's not a lot of money. Well, and that's over the six years. Yeah. Right. and and we we've also I mean that's contingent upon uh the revenues meeting the the projections which we don't know if they will. Yeah. But if you know for 25 we got a $52,000 deficit

negative and then in in 26 we've got a little over 50,000. Well, that'll cover what we're talking about with the bid, you know. So, that's that's creepy. Yeah. You know, if if if we're operating on a cash basis without borrowing against future stuff, we're not going to have any money to spend until 27 and then we've got all of $88,000. If if if this cash flow is accurate, it's a good length. You know, the 402 is sometime in 2031. Yeah.

Let me let me just ask Kelsey what how can we help you? I'm not I'm not Have we helped you today? Yeah. Um No, I think so. So, it sounds like there may be agreement or at least from some around the CDA, the moving the funds to the CDA. And so, what I would need is direction. If that's the case, then I would need direction on what those funds were to be used for because that's something I have heard from Ellers and um the auditor is that we have to be clear about how those funds were would be spent. And so you could say something likely beautifification or streetscape loan fund. A revol you could revolving loan funds.

New idea. Y what a concept. I I mean, could you include, you know, wouldn't wouldn't you include an entire menu of things? So, like just everything we've ever done, put that in the menu and then we can do whatever we want or just say can decide that. How how specific do you have to be? Is the like what what passes muster with the auditor? Let me I I understand where we're trying to get to. So, let me try to walk the tight rope and come back with something. Yep. Got it. Okay, that sounds good. you know, revolving loan fund and street beautifification and I I incentives

I think it was some documentation on the that you had created five eight months ago about the loan fund and some research that you had done and I know we have a new member so it's probably a good time to send that out again. Yeah. Okay, perfect. I think I have um good direction and Chris could straight to agreements. Oh, one thing, Kelsey, just as a housekeeping item on uh I think I brought this up on the tax increment column and in the uh total revenues column. Mhm.

And elders, they've got that pointing to something that doesn't add up to what's here. Uh I can tell you the number should be 9,840,17 not 11,468 okay in that first column and then by the same difference and the it doesn't affect I checked it doesn't affect the cash flows across the in the rows but it does okay it doesn't look right sounds good should be fixed are we going to try and grab 10 minutes in a close session to talk about the ascendics.

Um, if you're interested, yes. And should we then reconvene downstairs? Yeah, that would be um, perfect. So, I am hoping we can schedule and sorry to make you guys work extra, but I'm hoping to schedule meeting I'd say in a month um, once we have some of these agreements formalized and then um, we have the lighting information so that way we can keep moving forward. I just don't want to miss that this October date and that might align really well with Sundix as well. So, um but yes, let's um go into close session and we'll go downstairs for the Could I get a motion to go into close session as presented in this memo? So, move second. I'm going to give that Dick.

Let's give it to Dick and second to We'll get to Brian. All those in favor of going into close session downstairs say I. I. Any opposed? Motion carries. Um we will reconvene in a secure location. All right.