REDEVELOPMENT AUTHORITY OF THE CITY OF KAUKAUNA
A meeting of the Redevelopment Authority of the City of Kaukauna was called to order at 9:00 a.m. on Friday, December 4, 2020, by Chairman Feldt. This meeting was held remotely via teleconference.
Members Present: Feldt, Landreman, Lindeman, Moore, Verhagen, Windorff.
Also Present: Planning Director Jakel, Principal Planner Brunette.
Absent and Excused: VanderWyst.
- Minutes. A motion to approve the minutes of the November 11, 2020, meeting was made by Verhagen, seconded by Landreman. All members voted aye. Motion carried.
- COVID-19 Loan Forbearance Program. Jakel explained that RACK approved a deferral of payments through the end of 2020 for those business who opted to take advantage of the offer. No payment was required since April and interest was not accrued. Mr. Jakel suggested extending the forbearance until February to get businesses through the holidays. Mr. Landreman suggested approving an interest-only payment option. Ms. Verhagen asked how our business community is doing. Ms. Brunette explained that there has been no formal outreach to businesses in the last six months. Ms. Verhagen suggested offering payment options to struggling businesses. Mr. Jakel explained that the administration on interest-only payments can be burdensome and if a business is struggling, they could reach out for assistance. A motion to end the loan deferral program in February of 2021, offer options to struggling businesses with RACK approval and require newly dispersed loans to begin payments right away was made by Windorff, seconded by Verhagen. All members voted aye. Motion carried.
- Code of Ethics/Conflict of Interest Form. Brunette explained that the forms were a recommendation from our consultant following the loan restructuring program.
- Interest Rates and Downtown Boundary for 2021. Brunette explained that current rates are 2% in the core downtown district and 4% in the rest of the community. Ms. Brunette explained that conventional loan rates are currently very low, and as it is not our intention to compete with the private sector, recommended leaving the interest rates as they are. Ms. Brunette explained the proposed boundaries of the downtown district which also included the Nicolet School property. Mr. Jakel explained that the property was converted to commercial use and with its historical nature and proximity to downtown, the 2% interest rate is warranted. A motion to keep the interest rates at 2% in the downtown area and 4% outside the boundary and to approve the boundary description as presented was made by Moore, seconded by Landreman. All members voted aye. Motion carried.
- Review Loan Application – Modix, Inc. (Sebastian Schmidt). Jakel explained that Modix’s current operation is a leased facility in Neenah. Mr. Schmidt is looking to construct a 9,000 square foot net-zero building using solar and geothermal technology. Mr. Jakel explained that the proposal would be an ideal candidate for a PACE loan however the cost would exceed the 8% of value statutory requirement. Mr. Jakel explained that the Industrial Park Commission and Common Council have reviewed and approved the sale of the property in the NEW Prosperity Center for the project. Mr. Schmidt is looking for $150,000 at 2.5%.
- Executive Session – Modix, Inc. (Sebastian Schmidt). A motion to adjourn to Executive Session at 9:35 a.m. pursuant to Wisconsin State statute 19.85(1)(e) was made by Landreman, seconded by Moore. All members voted aye. Motion carried.
- Open Session – Modix, Inc. (Sebastian Schmidt). A motion to return to Open Session at 9:55 a.m. was made by Landreman, seconded by Moore. All members voted aye. Motion carried.
- Other Business. Brunette thanked Authority members for their thoughtful discussion of items before them and for their time and effort in thoroughly reviewing applications.
There being no further business to be brought before the Authority, a motion to adjourn the meeting at 10:00 a.m. was made by Landreman, seconded by Verhagen. Upon roll call, all members voted aye. Motion carried.
Community Development Coordinator