VILLAGE OF FONTANA ON GENEVA LAKE
WALWORTH COUNTY, WISCONSIN
(Official Minutes)
MONTHLY MEETING of the COMMUNITY DEVELOPMENT AUTHORITY
Wednesday, October 6, 2010
Chairman William Turner called the monthly meeting of the CDA Board to order at 7:00 pm in the Village Hall, 175 Valley View Drive, Fontana, Wisconsin.
CDA members present: Roll call: Chairman Turner, Cindy Wilson, Bob Chanson, President Arvid Petersen, Jeff Fisk (arrived at 7:11 pm)
CDA members absent: Skip Bliss, Gail Hibbard
Also present: Rallee Chupich, Administrator/Treasurer Kelly Hayden, Library Director Nancy Krei, Village Clerk Dennis Martin, Carol Whowell, Tom Whowell, Director of Public Works Craig Workman
Visitors Heard
None
Announcements
Approval of Minutes for September 8, 2010
President Petersen/Commissioner Chanson 2nd made a MOTION to approve the minutes as submitted for the meeting held September 8, 2010, and the MOTION carried without negative vote.
Approval of Current Payables
Hayden stated that she still needed more information on an invoice submitted by HGA and asked the CDA to hold off approving the invoice until she received a detailed report. Turner stated that the payables include a charge from Village Attorney Dale Thorpe totaling $1,022 for time spent on a public record request for copies of emailed messages pertaining to the lakefront ownership inquiry. Turner stated that the request was for copies of emails of the Village Board members, Hayden and Martin. Hayden stated that since the request was generated by the CDA Board’s legal research project for the Lake Street business properties, the expenses for having the village attorney administer the open records request was allocated to the CDA. Turner stated that the CDA did not authorize the expense for the Village attorney services and he thinks the CDA should not pay for the expenses. Turner stated that the bill should be sent to Lake Geneva Regional News reporter Rob Ireland, who made the request for copies of all emailed messages pertaining to the lakefront ownership research project. Wilson stated that she thought Ireland’s request was to simply pick up copies of the emailed messages and she didn’t know Thorpe was going to be involved. Hayden stated that the village attorney handled the request for emails in order to guarantee the Village of Fontana was providing all the information it was required without putting village or personal computer equipment in legal jeopardy. Petersen stated that two of the Village Board members are on the CDA and the project was initiated by the CDA. Wilson stated that the CDA should have authorized the expense with Thorpe before his services were solicited if the CDA Board was going to be responsible for paying the bill. Petersen stated that the request was presented between monthly meetings of the CDA and there was not enough time to get preauthorization. Petersen then made a motion to approve the bills as presented, with the exception of the invoice submitted by HGA. The motion died for lack of a second.
Chairman Turner/Commissioner Wilson 2nd made a MOTION to approve the payables as presented, with the exception of the $1,022 invoice submitted by Village Attorney Dale Thorpe and with the condition that the HGA invoice is not paid until the billing details are provided. The MOTION carried without negative vote.
Finance Report – Administrator/Treasurer Hayden
TIF Increment Letters to Wisconsin DOR & State Senator Neal Kedzie
Turner stated that the subcommittee of Village Board and CDA members met with Jim Mann of Ehlers and Associates to discuss the Wisconsin Department of Revenue change in valuation determination for TIDs. Turner stated that because of the $26,853,700 decrease in the DOR’s certified value of the Fontana TID, the financial projections the CDA has been using had to be recalculated in the updated spreadsheets. Turner stated that using a very conservation increment increase projection of 1 percent per year over the next 20 years, the Fontana TID will still end up with a positive cash balance of $2.5 million if no more projects are undertaken. Turner stated that at a 1 percent annual increase in the total valuation of the TID and because of the Wisconsin DOR decrease of $26,853,700 from last year’s certified value of the TID, there will be a negative cash balance until 2019. Turner stated that the CDA will have to borrow from the General Fund for its debt service payments or approve a refinancing plan for the years when there is an anticipated negative balance. Turner stated that the CDA will not be unable to undertake any new projects until the certified value of the TID increases. Petersen stated that if a proposed project could fund itself, the CDA could consider approval. Turner stated that if the total increment value increases by more than 1 percent in one of the upcoming years, the negative cash balance will improve at a faster rate. Turner stated that the subcommittee members are recommending that the Village initiate a legal procedure to protest the DOR certified value of the TID; that the Village call on State Senator Neal Kedzie to provide assistance; that the DOR be petitioned to change the valuation method back or to phase in the new method; and that the State Trust Fund provide loans at no interest for TIDs that are now experiencing negative cash flow problems because of the change in determining the certified value of TIDs. Turner stated that draft letters to be sent to Senator Kedzie and the Wisconsin DOR were distributed for review. Turner stated that the subcommittee members also want to file a formal appeal with the Wisconsin DOR and seek support from other municipalities that have TIDs. Turner stated that if enough state municipalities join together to file a formal appeal it may help the Village of Fontana’s position. Turner stated that the subcommittee would like the Village Board to authorize the issuance of the letters to the Senator Kedzie and the Wisconsin DOR, and to authorize the commencement of the formal appeal process with the Wisconsin DOR. The Village Board approved issuance of the letters with the condition that typos in the letters were corrected so that they correctly state “over $16 million in projects.” Turner stated that it will be difficult to get an appeal approved; however, there is nothing wrong with filing the appeal and taking a chance for a positive outcome.
Chairman Turner/Commissioner Wilson 2nd made a MOTION to authorize the issuance of the letters to Senator Neal Kedzie and the Wisconsin Department of Revenue as presented, and to authorize the appeal process with the Wisconsin DOR. The MOTION carried without negative vote.
TID #1 Projects – Public Works Director Workman
TIF Project Maintenance Activity Report
The updated report was distributed.
General Business
Extension of Lease for 138 Fontana Boulevard
Turner stated that the Village Board approved a motion to recommend renewal of a one-year lease extension with the same terms, subject to approval by the CDA Board. The current lease has the rent at $500 per month from October through April, and $700 per month for May through September. Turner stated that although the CDA is putting out an RFP for a developer to work with the Village on a development plan for the site, it will take at least one year for the approval and planning process, so the lease can be renewed through August 2011.
President Petersen/Commissioner Chanson 2nd made a MOTION to approve the renewal of the lease with Patricia Doherty and Miles Hughes for the residence at 138 Fontana Boulevard until August 31, 2011, and the MOTION carried without negative vote.
Village Beach Revenue Payment
Hayden stated that since the Village had a tremendous season at the beach, the annual repayment to the CDA for the beach house construction totals $38,053. Hayden stated that since the total amount is a significant increase over the scheduled amount, staff would like to allocate $2,750 of the funds for beach house floor repairs, and make the annual repayment a total of $35,303.
President Petersen/Commissioner Fisk 2nd made a MOTION to approve the proposal to allocate $2,750 of the $38,053 2010 beach admission revenue annual repayment from the Village to the CDA for beach house floor repairs, and the MOTION carried without negative vote.
Lakefront Ownership Progress Report
Turner stated that Attorney Hank Gempeler has not yet met with the attorneys representing the Gordy’s Group and Jamie and Carol Whowell; however, once he does, Gempeler has indicated he can wrap up the project and complete his report. Chanson asked where Gempeler was with regard to the approved $5,000 budget for the research project. Turner stated that he has told Gempeler on several occasions that the budget is only $5,000 and Gempeler has not indicated that he will be requesting more funding. Chanson stated that the original charge of the research project was to determine the parameters of the road prior to finalizing plans for the now rejected Lakefront Building Proposal. Chanson asked that now that the referendum has been denied, why is the CDA still pursing a legal opinion from Gempeler. Turner stated that the CDA could stop the research project, or the issue could potentially be “put to bed” after it has been coming up for the past 35 years or more. Turner stated that as a longtime village official, he would love to have the issue resolved once and for all. Turner stated that the research project is almost complete and it should not be stopped now. Fisk stated that since the CDA had already committed the funding, the project should be completed as long as additional funding is not requested. Turner stated that Gempeler has indicated that he can complete the report and he will not have to come back to the CDA for more funding. Fisk stated that if in a few years the CDA elects to pursue approval of the Lakefront Building Project, it would be nice to have the issue resolved. Tom Whowell stated that he wanted to share with the CDA Board members some of the documents that his family has had to accumulate to protect their business interests. Tom Whowell stated that the bills for the lakefront ownership research project go way beyond the CDA’s bills. Tom Whowell stated that he wrote letters to the CDA and Village Board and so did Carol Whowell, and no reply was received. Tom Whowell stated that they were seeking direction on the scope of the inquiry before the project was commenced. Tom Whowell presented a book of documents concerning the lakefront properties and riparian rights and stated that the documentation is public record and clearly demonstrates the private ownership of the lakefront riparian rights. Tom Whowell stated that the scope of the CDA project was supposed to be to get the road platted and the Lake Street reconstruction plans finalized. Tom Whowell stated that the CDA has allowed Florida resident Bruce Jensen to present way more information to the attorney hired by the CDA than what is pertinent to the initial scope of the inquiry. Tom Whowell stated the Bruce Jensen is not even a property owner in the Village and the CDA has unwritten his personal attack on the Whowell families. Besides funding Jensen’s attack, Tom Whowell stated that the CDA is countermining its main objective – to promote the increase of property values in the TID. Tom Whowell stated that two of the only business properties in the entire TID that have continued to thrive despite the terrible economic conditions in the country are now being attacked by the CDA. Tom Whowell asked the CDA Board why it was not supporting the business owners instead of underwriting an attack that’s goal is to diminish the value of the properties owned by the Gordy’s Group and by Jamie and Carol Whowell. Carol Whowell stated that they had no choice but to protect their business interests by hiring an attorney and respond to requests to provide any information they may wish to assist with the legal review. Carol Whowell stated that the CDA provided an opportunity and paid for a meeting with Gempeler and Lou Loenneke, Jensen and Attorney David Rasmussen. Carol Whowell stated that now Gempeler wants to meet with their attorneys and suggested that they bring a surveyor along to the meeting. Carol Whowell stated that she has already incurred $16,000 in expenses for the legal review initiated by the CDA and she asked if the CDA would be paying their bills since it funded the meeting for Loenneke, Jensen and Rasmussen. Carol Whowell stated that the CDA Board opened a big can of worms and it is costing the Whowell families thousands of dollars with their legal review project. Turner stated that he suggested to Tom Whowell and Carol Whowell that they wait until Gempeler was done with his initial legal review before they consider hiring an attorney to get involved. Turner stated that the attorneys representing the Gordy’s Group and Jamie and Carol Whowell submitted letters and documentation at the beginning of the process, and Gempeler indicated to him that a meeting was requested by the attorneys representing the Whowell families. Turner stated that the reason he accompanied Jensen, Loenneke and Rasmussen to Gempeler’s office in Madison was to make sure the meeting was limited to one hour. Turner stated the next step in the legal review is dependant on the results of the legal review; however, it would be up to the Village Board to initiate any other proceedings including a declaratory ruling from a judge or the drafting, approval and recording of an assessor’s plat. Turner stated that if someone else wants to take the mater to court for a ruling it would have to be funded by them, not the CDA. Tom Whowell stated that the whole issue started as a proposal to work together to draft a plat of the road and they were willing to work with the Village. Chanson stated that since the referendum failed, any future work should be funded by someone else and it is not a CDA issue. Turner stated that if the CDA stopped its inquiry now if would bring the whole process to a halt. Turner stated that state law dictates that all platted roads are at least 66-feet-wide. Turner stated that nothing has been found that indicates the Village has ever had the road platted, and if it has not been platted, the 66-foot rule doesn’t apply. Turner stated that all of the ramifications can be talked about for hours; however, until the final report is made, it is pointless to speculate. Rallee Chupich stated that the business owners just wanted to get some answer on the process prior to the initiation of the project and those answers were never provided as requested. Chupich stated that all the CDA has accomplished is to underwrite Jensen’s continued attack on the Whowell families and provide him with a platform to sully their reputation. Tom Whowell stated that now Jensen is after information on the fuel tanks at Gordy’s in an attempt to diminish the property value. Carol Whowell stated that she will have her attorney attend one more meeting with Gempeler, but she hopes the situation can be resolved. Carol Whowell stated that once the CDA is finished with its review, the project could continue costing the businesses money if the Village Board doesn’t put an end to it. Carol Whowell stated that she had written a letter to the Village Board expressing her concerns about the legal review process initiated by the CDA and the associated legal expenses, and her hope that the Village Board has an end plan to justify the funds spent on the matter. Chanson stated that it is not fair to the Village taxpayers, residents and lakefront business owners that Jensen has not had to spend any money to fund the expenses he has generated with Gempeler. Wilson stated that when Gempeler submits his invoice for the project, it should be itemized so that expenses generated by Jensen can be billed to Jensen. Turner stated that he will notify the business owners when Gempeler’s report is submitted.
Big Foot Country Club Development Agreement Update
Turner stated that a meeting was held with the representatives of Big Foot Country Club and the six areas of concern were discussed. Workman stated that following the completion of a study on the current conditions and the storm water concerns at Big Foot Country Club, it was determined that the best approach would be to not pursue the development of a detention pond proposed by hole number 6, because the storm water work at the Abbey Hill subdivision has alleviated the concern; to not pursue a detention pond by hole number 16 because of DNR wetland determinations and alternative planting and landscaping plans that will provide a solution to the concern; the concern in the Mayflower Lane area has been solved; and the concern in the farmland area still has to be resolved. Workman will draft a letter to Big Foot Country Club to outline the determinations and recommendations of the subcommittee including what has been accomplished by the Village and what projects are still required. Turner stated that the bottom line of the report is that the Village will not have to purchase any land to remedy the concerns. Workman stated that he will finalize the report and draft a letter to be sent out this week.
RFP for 138 Fontana Boulevard Development Site
RFP for Duck Pond Development Site
Turner stated that the draft RFPs were distributed and the initial comments addressed. Turner stated that he would like Wilson to work with Martin to make a final review of the two RFPs and to make any necessary amendments prior to issuing the RFPs. Wilson stated that she does have some concerns about the submittal deadlines, and Turner stated that Wilson can determine what dates to set for the RFP submittal deadlines.
Chairman Turner/Commissioner Chanson 2nd made a MOTION to direct Commissioner Wilson to work with Martin to review, finalize and put out the RFPs for the 138Fontana Boulevard and Duck Pond development sites. The MOTION carried without negative vote.
Reid Park Gazebo Replacement
Turner stated that because of the DOR change in TID certification, the CDA currently does not have any funds for the proposed reconstruction of the Reid Park Gazebo.
Chairman Turner/Commissioner Chanson 2nd made a MOTION to defer the planning and funding of a new gazebo for Reid Park to the Village Board since the CDA currently does not have any money left for new projects. The MOTION carried without negative vote.
Village Board Report – President Petersen
All the Village Board related matters were addressed in other agenda items.
Lakefront & Harbor Report – Commissioner Chanson
Chanson stated that he had nothing new to report.
Park Commission Report – Trustee Wilson
Wilson stated that the Park Commission developed a long-range plan and approved its annual budget at the last monthly meeting. Turner stated that the prairie restoration project at the Duck Pond is going great and the village will no longer have to purchase seeds for the project since they can be harvested from the existing plantings. Wilson stated that the project has been successful thanks in large part to Gail Hibbard and the volunteer group of Garden Club members that she coordinates.
Confirm Quorum & Dates for Upcoming Meetings
The next monthly meeting date is Wednesday, November 3, 2010.
Agenda Item Requests
None
Adjournment
President Petersen/Commissioner Chanson 2nd made a MOTION to adjourn the meeting at 8:14 pm, and the MOTION carried without negative vote.
Minutes prepared by: Dennis L. Martin, village clerk
Note: These minutes are subject to further editing. Once approved by the CDA, the official minutes will be kept on file at the Village Hall.
APPROVED: 11/10/10