 Okay it's time to call this meeting to order. Let's start out with the pledge of allegiance. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands one nation under God and indivisible with liberty and justice for all. Okay next item on the agenda is approval of the minutes from our June 17th meeting. Entertain a motion to approve those minutes. I would make a motion to approve the minutes. Is there a second? Okay. Who's the first? Roy? Roy. Okay. Is there any corrections needed? Seeing none all those in favor the minutes please signify by saying aye. Aye. Motion passes. Oh there's anybody opposed? Motion passes. Items for discussion and possible action. Item 3.1 is discussion and possible action on the consideration of extending the life of TID-18 the district known as the South Point Enterprise Campus. I'll turn it over to Chad Pellecek our city planner for report on this item. Thank you so before we begin Roberta before this meeting I sent out an email with the attachments that I'm going to be referring to. I don't know Roy and Roberta if you guys can look at those it might help in the discussion. If not so what we're looking at today is TID-18 so you'll recall that we created TID-18 back in 2018 for the development of the South Point Enterprise Campus the city's new business park on the south side of Sheboygan. When we originally put together the development assumptions and the performer for that district we had anticipated that we were going to one have new development from the FedEx which we have and I'll talk about that shortly and that we had some potentials for a six million dollar project and a two million dollar project and then selling land at 50,000 an acre for interior parcels and a hundred thousand dollars an acre for I-43 parcels. Since that time the FedEx project and in the first sheet that I handed out on page one you can see under the actual column the three million nine hundred ninety five thousand that's partial of the FedEx and the three million seven hundred and four thousand is the other one so the total project is right around four point seven million. We had anticipated that that's what the development assumption was going to be and that was going to be new revenue. We did not successfully get the eight million dollar project that was going to be constructed in 2019 and be available for taxing in 2020 and then Van Horn was going to build a dealership Van Horn Van Hyundai dealership that they built on the property next to the current dealership out there in the town that was originally going to be built on the city's property for another two million of value. So what we had to do is push out the projects and we are right now we had anticipated a potential project of five point five million which is a couple projects that are proposing to happen although we haven't actually got offers yet and then we're working on a warehouse development in 2022 that for the eight million that may create some additional increment and then what we looked at was the value of land. So when our neighbors to the south in the city of village of Woosburg is giving away land for free and our neighbors to the west and falls are giving away land for free it's hard to remain competitive at fifty thousand and a hundred thousand dollars an acre so this preforma puts it at twenty five thousand dollars an acre when we believe it's probably going to be less than that to do so. So the development of this site has substantially changed when you look at the next page in this packet page two it runs through the tiff increment projections and I'm sorry the page three is very small for those of you that I printed copies I should have printed it the other way but in essence basically what we're talking about is the fact that we've got roughly fifteen million dollars of investment in outstanding loans that have to be paid back and when we look at the development assumptions and the revisions to the the cost per land it pushes us out to paying that back to the end of the district which is 2039. So what we're here to talk about today is whether the Joint Review Board would allow for us to project for a three year extension so under state law the Joint Review Board has to basically approve a resolution that they would if it was needed and once we got to 2039 we would be able to exercise the extension for another three years of the district by state law by state statute we get the three years then we would take it not knowing where we're going and not knowing how long covid is going to take and we've got some permanent financing to get in order yet we just think it's uncertain terms to not project a you know that we're going to need this extension and it'll actually look better on our Moody's rating calls if we have a few more years to recoup some revenues so the idea here would be to obtain approval from you guys or entertain an option to give the city the authority to extend this district for another three years to hopefully if we need it to hopefully recapture some of the revenues that we anticipated we're going to be coming in in the first couple of years and probably aren't going to be particularly because covid hit right when we were ramping up so that's kind of it in a nutshell and I'd be happy to answer any questions thank you very much Chad any questions for Chad I could Mr. Mayor go ahead are there other districts that have been extended and what is the projection on all of the districts going forward overall financial picture I guess is what I'm looking for so to answer that question the overall financial I mean most of our districts are doing well you know this is the only district that we have that's created as an industrial district which doesn't give us any flexibility to share between districts because you can only share with like districts so the the challenge we have is given that this is created as an industrial it is what it is and it's got to kind of stand on its own we have just closed out to 11 which will be making payments back to the county that roughly $500,000 the rest of the districts we've got tid six that's closing in a few years I mean most of the districts except for the ones that have started recently like the couple we've created in the that have some debt on them the majority of them all in all are doing well thank you Todd Wolf our administrator you have a question comment it's more of a comment one of the reasons why we are looking at the three-year extension is that it was actually recommended to us typically an industrial park has a long life of around 20 years to actually you know develop build and close and because of the fact that we're we've had this pandemic situation not to blame everything on a pandemic but if you think about it we actually had some really good growth opportunities really set the table for us and we had very high expectations and that's why we took out the the the three-year NAN if you if you remember back the three-year extension is really being requested because it fills the gap and the void that we're we're going to have because of the COVID situation there are often opportunities that are out there but when we talk with the developers they're really kind of just putting things on hold they're not saying that they're not doing it they're just saying right now because of the uncertain times we need to hold the problem is we really need to continue to extend our TID the life of it doesn't mean that we're going to necessarily use it and correct me if I'm wrong Chad it's an extension but when we can still close prior so what we're asking is because of the situation it's better to ask for the three years extension now because of the COVID versus coming back and say 10 12 years and say I wish we would have asked for the three-year extension so we right now we can we can justify it we understand it we agree with it and if we need it we'll have it and if we don't need it we let it go thank you thank you very much and if I may mr. chair I think it really to that point to what the administrator said it really ties into the city's future bonding revenues and looking at these districts and whether they're going to be cash you know be able to cash flow themselves so it's to kind of line ourselves up as we go to Moody's in the bond market for other bonding for capital improvements and those things to show that in the financial picture we do have a few years should we need it now what I would say is we can't predict where we are going to be in 20 years but you know we did three was created to create the current business park around Weeding Creek Road we closed that district two years early and paid the taxing jurisdictions back a couple hundred thousand dollars as well so you know we've got a track record that it'll be successful it's just that we've got some we've been hit with some you know unstable times and not to say that over 20 years we're not going to have that as well but just giving us the statute amount of three years at least we know we have those three years to try to get this thing cash flowing if it should you know need it as we move along yeah are there any other questions or discussion I have a question please go ahead Roberta to recap you talked about FedEx and a couple of other potential businesses that would go into that part just just an overview is FedEx still alive but not quite for so much and are the other couple of prospects still alive or no FedEx is done so the total we had estimated eight and a half million originally the total tax rate total tax assessment right now is right around 7.7 7.8 million so we were you know roughly 500,000 or so off on that which isn't the worst we had anticipated another 14 million of new investment plus some land sales that would have given us additional increment those projects did not move forward so the projects that you see on the that I talked about the potential projects in the warehouse are still in discussions at this point we've met with the developers a number of times but we do not have a agreement with them that it's actually moving forward okay I'm in agreement to to extend I think that just makes good financial sense given that the uptake was slow because of the COVID so I'd be in favor of extending should we need it very good any other discussion or questions if I may mr. chair so if somebody is willing to make a motion the motion would be to approve a resolution extending the district for three years from 2039 to 2042 just to make a motion to what Chad just said thank you very much Roy thank you for that second we have a motion on the floor under discussion Roger I was going to make the motion to the point of improving the the bonding when the county bonds all of the municipalities and school districts are considered as we bond because that's all part of the taxing districts within the county so it's beneficial for the county as well very good any other discussion on the motion seen none all those in favor of the motion please signify by saying aye aye aye aye chair votes aye opposed motion passes next item is a motion to adjourn second thank you for that motion and support all those in favor of adjourning please signify by saying aye aye aye opposed we stand adjourned thank you very much for your time today thank you for coming in red