The Reedsburg Common Council unanimously approved a memorandum of understanding May 14 with Service Line. The city will sell land for the company to expand.
According to the memorandum of understanding, the metal fabrication company, located on Zinga Drive, will complete the project in two stages. A 3,780 square foot building with an estimated cost of $75,000 will be constructed in 2018 and the following year, a 6,700 square foot addition with an estimated cost of $125,000 will be built.
For the expansion, the city will sell a 0.3 acre parcel for $1.00 and will be responsible for $16,000 in developmental costs, including a $4,000 direct business assistance grant, $5,000 of soft costs to be paid for by TIF 9 and $12,000 of previous development costs for the parcel of land. The previous development costs have already been paid for by TIF 4. The new development costs will be repaid within a three year period starting in 2021 and will generate close to $60,000 in surplus over the life of the TIF.
The project is estimated to increase the tax base by $160,000 and will bring four additional full time jobs in 2019, according to the memorandum.
The agreement makes room for further expansion on another parcel of land if needed with the city agreeing to execute a right of first refusal for a 0.7 acre parcel to construct a new office and lab testing facility.
“At this point they are not able to guarantee that so we built into the MOU that they would get a right of first refusal for five years,” said Kurt Muchow, community development consultant for Vierbicher Associates. “If they exercise that right of first refusal they would need to build a building within one year and there would need to be a new development agreement for that expansion.”
In addition, the council approved a preliminary concept plan and development agreement for Jacob Stanek to purchase property on 900 Mary Avenue to convert the parcel into six additional lots, plus an existing one on 8th street. As a part of the agreement the city will pay for curb, gutter and asphalt installation while the developer will be responsible for utility improvements like sewer, water, electrical and other necessary improvement.
The Parks and Recreation Committee will review the agreement in May to make changes. Further consideration will be given from the plan commission before it is brought back to the council at a later meeting for further discussion.
Park Impact Fees
The council approved to reimburse $4,800 to Lakeside Foods for its seasonal housing project within the industrial park under the new ordinance for Park Impact Fees for seasonal workforce dormitory housing given the OK earlier this year.
The item passed 6-3 with Alderpeople Craig Braunschweig, Calvin Craker and David Moon voting in opposition.
In February, the council approved to update the municipal code to lower the rate for seasonal employee housing development with more than 12 units from $800 to $400 a unit due to findings in the park impact fees study.
“The fee they paid at the time was $800, which was our regular per unit fee we adjusted those for dormitory housing to $400 per unit,” said Matt Scott, parks and recreation. “They are requesting the difference of $400 per unit.”
The seasonal housing is located on the business site near the plant. Craker spoke out against reimbursing Lakeside Foods.
“There’s a need for this $4,800,” Craker said. “I don’ think we should reimburse somebody that is in business and making money. But that’s my opinion.”
The item failed in June 2017 at a parks and recreation committee meeting and tabled at a council meeting the next month.
The council unanimously approved to set a public hearing for June 11 to discuss rezoning property from R-2 residential to R-1 for resident to allow for two separate parcels at 415 Midway Drive.
The council unanimously approved to file the first quarter unaudited financial report from January 1 to March 31 2018. General fund revenue is 4.53 percent higher than expected and expenses are 3.28 percent lower for all general fund developments.
The council unanimously approved a second reading of three ordinances involving the purchase and possession of cigarettes or tobacco products by persons under age 18 prohibited.
The council unanimously approved $850 from the Webb Fund Request for the Historical Preservation Commission to put up a 16 by 24 inch bronze sign to put in Anna Stone Park to recognize Anna Louise Stone and Alexander P. “A.P.” Ellinwood.
The council unanimously approved to not have a council meeting on May 28 to commemorate Memorial Day.