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Village hears good news regarding TIF District
Developer making payment, letters of credit to village
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By Andrew Kuehl
11/15/07 KEWASKUM- The village board heard progress being made on reaching new agreements with the developer of the village’s Tax Incremental Finance (TIF) District during a special meeting Tuesday evening, November 13. The biggest winner in the meeting, the village, will receive $368,492 from the TIF district developer for his portion of the improvements to the district.
Developer Gary Gavin came away from the meeting with improvements being made to the property that will help him in selling parcels in the district. Approved was a street lighting proposal for Prospect Drive and Trading Post Lane and Trading Post Drive.
Prospect Drive, leading to Gavin’s Nature Haven Subdivision will receive a total of 15 lights installed at a cost of $9,320.19. On Trading Post Drive and Trading Post Lane, (roads running behind Kettle Moraine Town and County and JK Rentals) the village will install five poles that will have six lights on each pole. This will cost the village $23,623.94
The money for the lights will come from the TIF District budget. Gavin is expected to pick up $3,768.81 for his portion of the installation. Lights on Prospect Drive will most likely be installed sometime in December.
Gavin stated he was pleased with the action taken by the village, as he wanted more attention brought to the area. “Having Prospect Drive lit will help, people don’t know it’s part of the village,” he stated.
Road work that will improve access to the TIF district from Highway 45 and Badger Road is expected to be completed as soon as practicable. A Wisconsin Department of Transportation traffic study reveals that both Badger Road and Highway 45 will need improvements before access is allowed from those roads into the TIF district.
Those projects include installing dedicated lanes of traffic so as you head south on Highway 45, you have a turn off. Also required at Badger Road is a longer dedicated right turn lane for motorists turning south on Highway 45. The state says the current lane is not adequate to handle increased traffic from the TIF district. Total costs are expected to be $221,000 of which Gavin will pay $25,282.40
The village’s engineering firm Ruekert Mielke, will move forward with the permitting process for the storm water piping across the wetlands into a two acre remnant parcel that was bisected from the entire TIF district after wetlands were discovered. This parcel also includes a portion of the Rodenkirch property at the southwest corner of the TIF district.
The project is expected to cost $39,000 of which Gavin will be responsible for $4,461.60. Typically in a situation like this the amount would be special assessed back to the property owner, namely, the Rodenkirchs. Shambeau stated the village is unsure if this will happen.
The village also committed $25,000 for a permanent entrance sign from Highway 45. Gavin’s share of the sign will be $2,860. Typically in developments around the village a sign is the responsibility of the developer, however when the developers agreement was formed, it was decided the village would contribute to the sign because of their partnership with the developer.
Gavin lastly agreed to install the final lift of asphalt in Nature Haven Estates no later than September 1, 2008. All remaining sidewalk in the subdivision is required to be installed prior to the final lift of asphalt being installed.
Shambeau informed the board that the improvements needing to be completed will come from the TIF District budget. “These items were part of the project plan budget-wise. Most of you know we are already in the hole for what we budgeted for completing the TID infrastructure. Budget is somewhat irrelevant when we are spending money we don’t have and that’s where the agreement comes in. We shared with Gary when he questioned why the village hadn’t built this stuff, we shared with him, because we don’t have any cash. That is where the $368,000 comes in, to offset these items. This isn’t pulling us out of the red, but this is floating some cash to get this work done.”
Shambeau explained to the board, village staff will be putting together a long-term borrowing plan for the district. He reminded the board daily interest accrues at about $1,300 per day of which Gavin is responsible for about $500. Trustee Kevin Scheunemann stated he hoped to see something brought to the board before the end of the year to which Shambeau agreed.
Village Attorney Gerald Kiefer informed the village trustees that meetings continue between village staff and Gavin and his associates. The next meeting will be held on November 27 from which Shambeau will report back to the village board.
Gavin is expected to make his payment by December 3, 2007. He will also provide the Village with a letter of credit for financial guarantee number one and financial guarantee number three as required in the original developers agreement in the total amount of $184,000.
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