City of MononaCommunity

Development Authority

Presentation to the City CouncilApril 19, 2010

Role & Powers of the Community Development Authority

Prepare Redevelopment Plans Prepare Tax Increment District Plans Facilitate public/private partnerships Enter into contracts Acquire and dispose of property Prepare property for redevelopment Temporarily operate and maintain property Borrow money (debt is not deemed debt of

municipality) Many actions require approval of City Council

Recent Activities

Tax Increment District (TID) #5 & Redevelopment Area (RA) #5 creation in the Owen Road area

Facilitation of Garden Circle Redevelopment TID # 6 & RA #6 planning (east Broadway) RA #7 planning (north Monona Drive) RA #8 & TID planning (west Broadway) Housing stock improvement program

Owen Road Redevelopment

Created November 2007

Request for Proposals to redevelop Garden Circle

Selection of developer (MSP) for Garden Circle redevelopment

Owen Road Redevelopment

Negotiation of developer’s agreement with MSP for Garden Circle redevelopment.

Garden Circle project: successfully removed 8 blighted apartment buildings that were a drain on City resources

Developer selected for redevelopment has provided a high-quality project that is an asset for the community

Garden Circle: Previous Conditions

Garden Circle Redevelopment: Heritage Monona Senior Housing

Garden Circle Redevelopment: Heritage Monona Senior Housing

Garden Circle Redevelopment: Heritage Monona Senior Housing

North Monona Drive Redevelopment

Dean Avenue to Winnequah Road Commercial revitalization for areas

that have seen little reinvestment Commercial land and improvement

value growth in this area severely lag behind the City average over the last 25 years

Focus on “Targeted Redevelopment Areas”

North Monona Drive

Citywide increase in commercial land assessment 1985 -2007: 171%

Areas 1&2: 61% Citywide increase in

commercial improvement assessment 1985-2007: 223%

Areas 1&2: 87%

North Monona Drive: Existing Conditions

North Monona Drive

Citywide increase in commercial land assessment 1985 -2007: 171%

Site: 45% Citywide increase in

commercial improvement assessment 1985-2007: 223%

Site: 9%

North Monona Drive: Existing Conditions

West Broadway Redevelopment Area

West Broadway: Existing Conditions

West Broadway Redevelopment Area

CDA created RA #8 boundary per City Council recommendation

RA #8 created to: Facilitate redevelopment of old mobile home

site Facilitate development of vacant sites along

Broadway Potential TID creation to further assist in

redevelopment

CDA Activities

CDA has been active in pursuing redevelopment opportunities consistent with City land use and economic development plans

CDA has continuing projects: North Monona Drive East Broadway West Broadway Implement housing plan recommendations by

creating a housing improvement program

Benefits of CDA Activities

Redevelopment of blighted and environmentally contaminated sites

New jobs in Monona Growth of commercial tax base Housing improvement program

opportunities Concrete results with limited general fund

expenditures

CDA Funding

CDA looking to further assist City in achieving planned objectives

CDA needs stable, assured, long-term source of funding to see projects through and continue to drive private sector reinvestment

Any source of funding should not be funded by general levy

Potential funding source: Fees from TIF districts for planning, redevelopment and administration services

East Broadway Redevelopment

Working on TID #6 & RA #6 Plan

UW Health in discussions for new clinic on Fritz site

Menards expansion Other potential

redevelopment sites in area

East Broadway Redevelopment: Existing Conditions

Proposed East Broadway TID Budget

Infrastructure: $1 million Development incentives: $6.5 million Professional services/discretionary

payments: $600,000 Administration: $4.1 million

Includes $4 million for CDA; $148,000 per year over 27-year maximum TID lifespan

Proposed East Broadway TID Budget

Budgeting money for CDA in TID #6 creates opportunity for ongoing revenue source for CDA

CDA partners with City to provide planning, redevelopment, and administration services

City retains fiscal control through annual approval of CDA budget

East Broadway TID Timeline

April 27: public hearing at CDA meeting May 17: Council consideration of final

reading of resolution to create TID #6 Late May: Joint Review Board consideration

of TID creation

Conculsion

TID #6 provides City with a mechanism for long-term CDA funding with limited impact on general fund

CDA looking to continue carrying out City’s land use, economic development, and housing goals

City retains control by approving yearly CDA budgets