River Bluffs Update By Judy Steffes

ANSWERING QUESTIONS SURROUNDING RIVER BLUFFS ..      By JUDY STEFFES

The community of West Bend is buzzing since the Monday, June 7 council meeting where Mayor Kristine Deiss cast the deciding vote approving development of a nine building, 36-rental unit complex that will be built on nearly 3 acres east of the Eisenbahn State Trail.

Local lawmakers, business owners and taxpayers have questions surrounding the $7 million River Bluffs Townhomes project. Six of the top questions are outlined below.

1)         District 3 West Bend Alderman Ed Duquaine is looking into the Redevelopment Authority (RDA) and how the group had the power to sell a parcel of property to a real estate development firm, Real Estate Equities Development LLC of St. Paul, Minnesota. “I don’t understand how a non-elected body, an unaccountable body like the RDA can sell city land without a vote from the council or a proper vetting process from the taxpayers,” said Duquaine. During the Monday meeting the city attorney informed the council that it secured a deal Feb. 4, 2009 with Andrew Schaefer, vice president of development for Real Estate Equities Development. The parcel of property in question was along Wisconsin Avenue. “The RDA approved the option to purchase which was contingent on approval of a developer’s agreement,” said Community Development planner Julie Cayo. “They (RDA) couldn’t close on the property without the developer’s agreement being approved by the common council, which is what happened Monday, June 7,” she said.

2)         According to Community Development, the RDA was created in 2001; their powers regarding property purchase are outlined in statute 66.1333. “That gives them the ability to buy and sell land,” said Cayo. “But they don’t act alone and they can’t act outside something the council has not approved.” Cayo said the RDA also acts as an arm of the city, to embark on different projects. “If there’s a lawsuit it would be the RDA’s lawsuit and not a liability to the city as a whole,” said Cayo. “The RDA can also borrow in its own name and it’s not counted as debt for the city.”

3)         The RDA is made up of six citizen members and one alderman; currently alderman Tony Turner. The first meeting between the RDA and Real Estate Equities was Feb. 4, 2009 and an option to purchase was put in place. Duquaine and Deb Anderson were first elected to the council in April 2010. Duquaine said he “was completely blindsided on this whole thing” and had not been aware of the operations of the RDA. Former alderman Richard Lindbeck and Terry Vrana both said they were never aware of the RDA’s deal with Real Estate Equities either. Turner said he typically doesn’t talk to aldermen individually about the RDA actions because of requirements regarding open meeting laws. He also never relayed the RDA information to the council as a whole. “In November John Cappelle briefed the council on the project, so the only people who did not hear were not on the council at the time,” said Turner.

4)         There’s a city ordinance 17.39 subsection 4 - Applications For Site Plan Review – the Department of Community Development shall submit all applications and accompanying plans to the appropriate city departments and staff and the plan commission for its review. Fire Chief Jim Vest said he is always notified for new building development and he did see the plans for River Bluffs on Nov. 4, 2009. “We do certain levels of plan approval for the city, so anything that’s going to be built we’ll see here,” said Vest.

Cappelle said he normally contacts the fire department because of fire protection, the location of fire hydrants and the water laterals from the street to the buildings.

Police Chief Ken Meuler said he was never asked by Community Development director John Cappelle to review the plan. “His interpretation is we were not an affected city department,” said Meuler. “Since I have been chief we have never been sent a community development site plan for review.”

Cappelle said the police department isn’t typically on the plan review distribution list. “If you look in chapter 17 the criteria for review of departments relates to site planning and development portion of the code so what’s appropriate is how does the building layout on the parcel, the zoning setbacks from the street, driveways, parking, open space, etc.

Cappelle said the code Meuler refers to “really relates to the development on that particular lot.” Questioned whether an influx of 36 to possibly 100 more residents would have an impact on police staffing or demand on services. Cappelle said, considering the community has a current population of 30,000 – an additional 100 people living downtown would not have an impact on the West Bend police department.

5)         Property taxes from the development will go into tax incremental financing (TIF) District 5. Because River Bluff receives federal funding from the Wisconsin Housing and Economic Development Authority the project will not be taxed at the full rate. Cappelle said had this been a business development the project would be taxed at the full amount. “We’d prefer it not be less, however it is revenue the TIF would get now,” said Cappelle. Jan. 19, 2004 the city council zoned the land mixed use, so the property can be used for either residential or business. “Over the years we attempted to get businesses here and perhaps they might come in the future but this presented itself as something that was legal and appropriate,” said Cappelle. Questioned whether this was the best use of the property Cappelle said, “It is a use.”

6)         A letter welcoming the townhouse development was sent to the St. Paul firm in 2004 and signed by then alderman Dave Krochalk who sat on the RDA. Krochalk said he remembered signing the letter, but admitted he didn’t write it. He believed the letter was written by someone in Community Development. Now, six years later, Krochalk talked about the current state of affairs.  “The property has been developed and obviously it’s more valuable than before but unfortunately the economy is such where, there aren’t a lot of developers willing to step in and start spending a lot of money,” he said. Questioned whether this was the best use of the property considering the developments in the last year with the Museum of Wisconsin Art, moving of Veterans, rehab of the train depot and relocation of the Binkery, Krochalk said, “Nope. Plain and simple no, but it’s what we have and for us to wait any longer it would be foolish,” said Krochalk.

Posted by Owen at 0709 hrs
Economy + Politics + Politics - Wisconsin