 the meeting of the redevelopment authority to order. Chad, if you will call the roll please. Roberta Flicky Pineski. Here. Steve Harrison. Here. Dave Gass. James Owen. Here. Amy Horst. And Dave Soxie. I think Amy Horst and Dave Soxie are both excused, so we do have a quorum. Amy Horst. We do have a quorum. Okay. All right. All right. Let us pledge 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, indivisible with liberty and justice for all. Thank you very much. Is there anyone on the authority that has a conflict of interest with the discussion items? Dave Soxie. Dave Soxie. Can you tell us which item? I think he just joined. I just, which item? Oh, Dave Soxie just joined. Thank you, David. What was which item? What did that mean? Amy Horst. We have two items on the agenda. Does anyone have a conflict with either of those? Dave Soxie. Sorry. No. No. Okay. All right. Hearing none. The chair will entertain a motion to approve the minutes from the July 1st meeting. Move. Seconded by Harrison. Okay. Any additions? Corrections? Hearing none. All those in favor say aye. Aye. Motion carries. Okay. We have with us today a representative from the financial group. Greg, if you would introduce yourself to the group. Yep. Good morning, everyone. Greg Casper here with the financial group on 8th Street in Sheboygan. Okay. And if the authority remembers, Greg has an outstanding loan for us. Chad, would you like to start and then we'll have Greg or should we have Greg start? I can begin. So just for the authority's information, we had a $75,000 note with the financial group executed in December of 2017. Under the terms of that loan, the financial group was to create three new full-time equivalent positions in three years with two of those positions meeting the low to moderate income status. To date, they've created one job, I believe that meets the LMI status, so we'll have to confirm. Greg, maybe you can confirm that, but the financial group explored paying off the RDA early and that did not work out. And they also have a concern about meeting the two full-time equivalent job requirements as stated in the loan agreement. The current terms of the loan is 2.5% interest for 10 years. He is current and yes, so what the request is in the letter is to talk about what options are out there, but I'll let Greg give a little bit more information on his request and then we'll talk about what options we might have. Okay. Thanks, Chad. So yeah, basically, Chad gave you all the information there, the rundown. Essentially, I did get the loan in December of 2017, and I'm thankful, very grateful I was able to get that, that helped me close the business deal. My predecessor was Greg Reineking, who started this business in 2005. Successor, but with the terms of loans that I did borrow, we needed like chats that I needed to hire or create three new full-time jobs low to moderate income individuals. I believe 51% of the workforce within the financial group needs to be in that criteria. Currently, Chad, yes, we do have one individual who is in the low to moderate income category. I obviously am not, and I'm also an employee in the financial group. So right now where it stands, I'm at 50-50, so not at that 51% threshold. With the unprecedented time we're in currently, I don't foresee me hiring moments last year of considering hiring an individual to possibly make a and go over the computer. All of that hasn't happened yet. During this time here, I wanted to talk to my banker and my local bank, and I did. I tried to see if we could pay off the note to the city of Sheboygan and bring the note over to my bank. However, week four to avenues. The first one was with the SBA. They're going to require me to do an environmental study. The environmental study is due to Artimix in my back alley. Artimix is a dry cleaner no longer. There is history if you look at the paperwork of chemical spills. This study, I guess, if you will, is like a phase one, I believe. There could be other phases after that. It's expensive. It's maybe $6,500 just to do the initial assessment, I suppose, to get that SBA loan. So, I'm up against that. The second item, we try talking to my bank, see if I can bring some money to the table and refinance the loan. However, the underwriter won't budge on that at this time. So, that's where I'm at now. I did send a letter off to the city of Sheboygan, attention to Chad Pellechec. The city did receive the letter. I'm asking if it's possible to modify my loan. I'm willing to enable all years listening if we needed to change the terms of the agreement to satisfy everyone. So, I'm willing and able to listen on that item too. And with that, any questions? I, Greg, I'd like you to know that the members of the authority are, they do have your letter. They have, they, they are familiar with your observations. I guess I'd kind of like to start. This, this loan is passed through from the federal government. So, we, we basically are bound by their rules for our rules. And the, the couple of things that we have available to us, we, we could extend the loan to encompass another year. I mean, we've gone through some hard times before. So, we can extend the loan. We can't change the parameters of the loan. And we also can't change the, you got to put three jobs together. I guess my question to you is, it's either for us, it's either put three jobs together or pay off the loan. You have been current paying now. My question to you is, too, do you foresee in the next couple of years that you will hire two more people and, or have you explored other bankers? Right. Have not explored other bankers yet. That's definitely a possibility. So, I'll look into that. In the next couple of years, it is possible to hire more staff too. As I keep growing my business, I've doubled the assets under management, doubled clientele within two and a half year period. So, it is possible. That's impressive. Roberta, I, so I have a question. I'm wondering if this just came to me. So that we gave him 75,000, 25,000 per new job created. Is there any way, Greg, that you could pay off? I don't know what your outstanding balances. I'm guessing it's about 50,000 or so, 60,000 maybe. Could you pay off like a $25,000 chunk for one of those jobs that you're maybe not going to be able to create for a number of years versus the whole thing? I think that would be possible. That might be another option, Roberta, that you and I did not discuss. Yep. Okay. I guess if we just back up just a second. What part of the loan covenant is he in violation of? Did he have three years to create these three jobs? So, Bert, one of your thoughts was to extend this for one additional year to create, to fulfill the covenant. So that would basically kind of put this on hold for a period of time for at least 12 months by extending that provision. Is that correct? That's my understanding. And then Chad's comment is that Greg has paid off a third of the loan already. There is a 50,000 balance. He'd get credit for 25,000 for getting, creating one job. The fact that he can't create maybe the remaining two, that there would be a $25,000 that would be doing owing at that point? That's correct. Chad? Okay. I just wanted to understand and make sure that I'm connecting the dots correctly. So, Greg, our goal is to keep you in business, not put you out of business. So, the challenge we have is that the federal government, you know, the requirements in federal law says that they're supposed to have no more than three years to create the jobs. You know, maybe COVID is the, you know, maybe there's some, I don't know, maybe there's some options there. But, you know, that's why I guess I'm torn over extending it for another year unless Greg really feels that in a year he's going to create another LMI job. Right. And at this time, I mean, to be honest, yeah, I don't have an answer on that. And I think if we extended on another year, if I have to create another LMI job, it's possible, but I'm not going to, I can't promise that. So. Well, technically, this loan, the three year deferral wouldn't be up on the three year timeline wouldn't be up until December. So, it's July. So, we do have, you know, we don't have to necessarily take action. Now, I guess we could wait till December and revisit it and see where we're at with the economy and what it looks like. And if it really, if he feels in December that he's going to be able to create another job within a year, talk about it at that point, I guess. Chad, would you be able to find out if there's any special provisions now that we have all of these COVID programs? Is there a chance you could just validate and make sure that there is an opportunity for us to make these modifications without a problem? I can tell you there probably, HUD has released very little guidance through this whole COVID thing. So, we have a different chunk of money that was COVID money that has different requirements. The old money, if you will, the stuff that was non-COVID, they haven't released any guidance on any of that stuff. So, I'm guessing the answer is no, that there's no changes. Greg loses his low-income employee. Does that mean he's created no new jobs? He's created one, according to what I know. Greg, you've created one full-time job that qualifies for the LMI. Is that correct? That is correct, yes. I guess all I'm asking about is, we get to December, or Greg loses that employee or something happens in the economy, and now that job is not an active position. Does that mean he has not created a job? Is that a picture in time, or did he create the job, and now he doesn't have that person anymore? We look at that. He created the job, so the job was there. Whether that person is there six months from now, weeds. Technically, the person should least be on until the end of the year when the three-year note is up that when we do the final check, we can see that there is an employee there, but after that, he doesn't have to retain them. Greg, if we revisit this end of November, beginning of December between now and then, could you go work with a different bank, different banker, and see? After this call today, I'm going to talk to the bank. Yeah, because the either or that we have with federal money, you create the job or the loan is payable and full. For us, those are our two avenues. If you use the six months to maybe do some creative financing, and we thank you. You haven't been in a rears for this loan, so we appreciate that. Yeah, you're welcome, and I appreciate everything you guys did for me. Okay, so we will revisit this end of November, beginning of December, and Greg will go about looking for some alternatives. We also appreciate that you came to us earlier than default. We like that. You're welcome. So, Roberta, if you could make... Okay, anything else? Roberta, if you could if you could entertain a motion to hold this until November so that we can put it in the minutes. Okay, Cheryl, entertain that motion. Of course, seconded. Okay, all those in favor say aye. Aye. Opposed? Motion carries. Okay, we have now been joined by the city attorney. Thank you, Chuck. Okay, okay. Cheryl, entertain a motion to go into closed session under the exemption provided in section 19.851E of the Wisconsin Statutes where competitive bargaining sessions require a closed session. Okay, now we're in open session and we're live and we're televising, so you can now vote. Okay, this is the redevelopment authority of the city of Sheboygan, going back into the open session. Cheryl, entertain a motion regarding the information discussed in closed sessions. I would make a motion to give an exclusive right to negotiate to the party for the six-month time period for just the one parcel. That's the blue parcel, I believe. Okay, it's been moved to give an exclusive right for six months. I'd like to make a friendly amendment to that and just put in that the value of the property is determined to be $100,000 and whether it will be a sale or a lease, the lease would be based on that $100,000 valuation and that's based on an appraisal of two-thirds of the property that was appraised. I would second that amended motion. Okay, okay, we have the amended motions. The mover accepted that motion. That amendment. Okay, any further discussion? We are giving Philippe the exclusive right to negotiate on the blue property along Commerce Street for the value of $100,000. For six months. For six months, thank you. Okay, any further discussions? Would you call the roll chat for this vote? Roberta? Yes. Steve Harrison? Yes. James Owen? Yes. Amy Horst? Yes. And I'm Dave Gasses no longer on Izzy? No. Okay, so we have four ayes. Okay, motion carries. Any other business to come before the meeting? No. You will entertain a motion to adjourn. So moved. Second. It's moved and seconded. Are there any objections? Hearing none, we are adjourned. Thank you for your time ladies and gentlemen.