 I am Roberta Fulicki Paneski, Vice Chair of the Committee, and let's do introductions starting to my left. Great, thank you, and in our audience, you very much appreciate that. Let us stand and pledge. I pledge allegiance to the flag of the United States of America and to the Republic for which it stands, one nation under God, indivisible, with liberty and justice for all. Thank you so much. Chair will entertain a motion to approve the minutes of the June 28th meeting. Is there a motion? Thank you, and second. Okay, it's been moved and seconded. Were there any additions or corrections to the minutes? Hearing none, all those in favor say aye. Opposed? Chair votes aye, motion carries. Thank you very much. Item for discussion and possible action, resolution three point, it's a 3.1, resolution 28 of 2122 from July 6th, 2021, document 5.2, a resolution authorizing the sale of land in the South Point Enterprise Campus. Chad, please start us off. Thank you, Madam Chair. So we're here to talk about the sale of land to S2A modular. So those of you that were on the council back in February of 2021, there was a closed session discussion to talk about this project in full detail. At that time, the city submitted a proposal to S2A modular, and since that time, we have been able to have them execute an offer to purchase, which is before you and it's contingent upon common council approval. So in the IFC that was attached to this document and board docs, their plan is to build what they're calling a mega factory. A mega factory is 100,000 square foot and up. Actually, there's a proposal is to build 200,000s or roughly 240,000 of manufacturing facility. They will be manufacturing modular homes out of that facility employing around 250 people. The original proposal was to sell them a chunk of property along I-43, basically from the south side of Stahl Road down to South Point Drive that frontages I-43 in the area where that South Point Enterprise sign is out on the interstate. After we started negotiating with them, they actually needed closer to 40 acres. So this proposal is to sell them 40 acres of land at 20,000 per acre. So it would include the 32 acres and then it would include eight acres of land on the south side on South Point Drive. So if you have the IFC, I highlighted a map in there that shows the parcels that they would be purchasing as part of that. The total is to sell the land at 825,000, which is 20,000 per acre, 20,000 in earnest monies. They have since paid that earnest monies so that's sitting at the Woodland title as part of the transaction. The purchase price is contingent upon renewable energy incentive funds. So you'll recall in the new TIF policy that the council has approved, we were working, we have laid out in there that we would provide TIF dollars to projects that basically had a renewable energy component of it. And given that most of this factory is gonna run off of solar panels, and that's when you, if you look at their website and you see their mega factory, it has all these solar panels and then it has the structures. Getting to this amount obviously isn't gonna be an issue. They're really looking at these houses or have Tesla technology and are self-sustaining and off of the grid. So the incentive, we're calling them renewable energy incentives and what it's going to do in the end ultimately is to reimburse them the cost of land. So on paper, they will pay the full amount for the land, but then in year six, after five years, they will, we will give them TIF incentive as you pay as you go TIF that will then ultimately bring the cost of their land down to zero or a dollar or something very minimal. So the idea behind this, and it talks about in the offer, if you read the offer, one of the contingencies is the additional $188,734 in renewable energy incentives. That is to, that is the cost of the land of those additional eight acres, eight to 10 acres, I think on the south side of self-point drive. Actually, I think it's eight acres because it's a total of 40. So the three parcels would be in essence on paper showing that we're selling it at 20,000 an acre. There'll be a real estate transfer, that'll happen, but then after the project gets stabilized in year five in the developers agreement, which is a separate document that's coming forward that will be approved by the council as well. In that document, it lays out the TIF incentive that will be paid back basically to provide the land to them for free or minimal cost. So they're looking to invest roughly $18 million in the development. There is one other clause in the offer to purchase that we agreed to that we would pay $50,000 out of the proceeds of the sale for them to do a feasibility study, and they have their own consultant that they work with to do that. So once we get justification on the expense of that from Santa Rosa Development Consultants, because this is a California firm, that's S2A is a California firm, they work with this consultant on all of their siting of locations so they will do a feasibility study to make sure that the property is feasible for them to build on, and then we will reimburse them the $50,000 out of the proceeds of the sale. Other than that, there's really nothing else in the agreement besides us just agreeing to the fact that we're gonna give them the additional incentive for the additional land that they're looking for. Also in the upcoming development agreement, they're also looking for a right of first refusal on 30-some acres to the east of them for a phase three of this project. So if this thing does indeed take off it, they will be a major tenant in our business park. We have a couple final things with some signage to work through on the developer's agreement and then the goal would be to get that to you guys sooner than later, but we wanted to move forward with locking up the property and getting them under contract for the offer of purchase before we move into the next pieces and hence the reason why this document is coming forward tonight. Anybody have, anybody on the committee have questions? Barbara, sorry, Barb. Can I turn her back? Okay, Chad, of course, my usual question is, can we make sure this time that the developer has some local talent in there? We have a lot of local workers that are very talented and I'd like you to push that with this developer and ask him if he could, it may cost the contractor a teeny bit more, but it's well worth the effort. So what I would say is that developer's agreement has the clause in it that they have to make a good faith effort to work with local contractors. The Economic Development Corporation will work with as kind of a clearinghouse to kind of work with the local contractors, but our local contractors are super, super busy and a lot of times timing doesn't work out and that's what we're hearing from developers is that they're under the gun to get going and they can't wait for local contractors, but most of these companies and developers are willing to at least open it up to the locals and give them equal fair share on submitting and it really comes down to who's available at what time. But the developer's agreement does have the language in it that they need to make a good faith effort to work with local contractors. I thank you for that and I'm hoping that because this is such a large project that our local developers will or our local contractors will take a look at that. We hope so too and I think that's the goal of it. Thank you. Perfect. Todd. Thank you, Chair. Just to kind of expand a little bit on Barbara's statement, we did really push the local trades, but we've also are hooking them up with our high school and our local technical college so that they can actually help some of our younger technical skilled, you know, carpentry and things like that to actually work for S2A. So we are working on that also and I just wanted to just real quickly touch on the fact that this project really started last year and we did bring it to council back in February, but this is another good example of how things were hot, then they're not and we really had to kind of babysit this one and we were just really lucky. They actually were scheduled, they actually had an agreement with Manitowoc. So we came really close and Chad and I are looking at each other going, hey, we haven't heard anything from S2A, what's going on? And we were just lucky that the CEO was coming to Wisconsin, coming to go to Door County because he bought a boat up there and he flew in and Chad and I and the mayor, we met with him and his family and showed him the facility, showed him the shovel ready property with all the roads and lights and everything and he was very, very excited. So we have so much to offer, we do have to do a little bit more due diligence on our marketing and making sure that people understand but please understand if they actually accept the additional 32 plus acres for additional projects, that'll take 60% of our industrial park with one company potentially. So it's something to think about for the future. Thank you. I was given to understand that part of the reason that they came was indeed, it was shovel ready, as in all of the preliminaries and all of the money that the city spent previously has paid off, fingers crossed till we get the final signatures but that was really the reason that they opted to select Sheboygan. Anybody else have a question, cause I have one. Yes, please. Yes, Gracia. Just what's the verbiage in the resolution, saying removing the contingency for the common council approval founded lines, blah, blah, blah. Chuck's gonna answer that question. There's a contingency in the offer to purchase. So the offer to purchase is already signed, which we could do that and then we included in their contingency that it's contingent and council approval. When you vote as a full council to approve it, it will remove that contingency, meaning that it will be met. So the verbiage will be removed from the agreement. Okay, okay. And then one more thing, can I? Yes, please. Would you chat, please, chat, chat. Explain again how the energy incentive funds will be working within the five years. So the project needs to include this renewable energy component in order to get TIF incentives. So what we did was we laid out the TIF incentive to start basically in year six, so that in the reason we did that is that we have a $563,000 debt service payment to make on the infrastructure. So it was about a $15 million project to build out the park and all the utilities and roads. When the city refinanced the debt last year or did permanent financing, we capitalized the interest, so we're making interest-only payments, but next year we'll have to make a principal and interest payment, which is the $563,000. We pushed the first payment of the development incentive out for five years so that we have time to get ourselves on board and hopefully develop the remaining 40 to 60% of the park and get other increment in there that will help offset the payment so that by the time we get to year five, we've got enough payment to make our debt service payment. If we would have started making TIF payments right at year one, then we would have had to find other funds to try to make our full debt service payment. So it's giving us a little cushion before we actually have to start. And they agreed to that, that they would get up and get going and get everything running full bore and then we would start making them incentive payments back and then I think we pay it off over five years. So whatever they pay in taxes, we'll pay a portion of that back to reimburse them basically the cost of the land. But that won't start until year six. All right, thank you. I have a question. I noticed that their property spans a road to the south. They have a major portion and then two additional properties. Will that road need to come out? So we are not sure. We're waiting to see what the final site plan looks like. They told us that their main manufacturing facility would be on the 32 acres. The sales office and kind of like module or home thing, their displays would be on that 10 acres, eight to 10 acres on the south side. Depending on how this all works, we may have to relocate that road. That road is nothing more than a asphalt driveway and our department of public works could go in and relocate it and repave it and push it down to the south if we had to and put it along the property line so that those parcels were combined together. But I've talked to David and Ryan and they've reassured me that it won't take much to relocate that, correct. Okay, so it's not the concrete with the pretty curves and everything? No, it's just an asphalt driveway. Okay, thank you. And then I'm a little foggy about the additional acreage to the east of the property that they are choosing to build on now. So they only want a portion of that and we are only encumbering that portion? No, they would, I'm sorry if you can't see this, but this is the piece that there is included in the first offer. They would get an offer, they get a, I think it's a right of first refusal on this whole piece to the east. So they would take the entire piece. So they have the 40 acres where the little red line is, plus the 30 acres to the east. So they want the whole hit and poodle right now? Well, they want a right of first refusal on the east piece. So in the developers agreement, it gives them a right of first refusal. So if we get another development, we would have to go to them first and they would have the option to entertain their option to purchase this east piece. How long does that option last? I don't think there was a timeline in that right of first refusal was there? There is. Five years, maybe? It's in the developers agreement. It's in the developers agreement. In the developers agreement. That's coming forth for another discussion. Okay, because there should be a limitation on right of first refusal. Perfect. Okay. Any other questions? This is pretty exciting. All right. Hearing none, no further discussion. Chair will entertain a motion to authorize the sale of the land in South Point Enterprise Campus to S to A for their factory campus. Is there a motion? Betty moved, is there a second? Second. Okay. Grazia seconded. All right. Any further discussion? Hearing none, all those in favor say aye. Aye. Opposed? Chair votes aye. Motion carries. That's it for the business of the meeting, the date of the next regular meeting is July 26th. Chair will entertain a motion to adjourn. Second. Move to adjourn. There is a second. Is there any objection? Hearing none, we are adjourned. Thank you very much, ladies and gentlemen. Done it again? I could. I missed it. I think it's fine. Thank you.