to all the person sharing made the motion.
All the person Bailey seconded it.
It was unanimous that we come out of closed session at 742.
OK, so let's go down to item 35.
Decision regarding a 2026, 2027 operator license for a Roronano
Bissero.
This is a council wish to take any action.
I move to grant an apparatus license for a Roronano Bissero.
Is there a second?
Second.
Second by all the person who's a wiki.
All in favor?
All opposed?
Motion carries.
Two passes.
So you'll contact her office tomorrow, right?
Your office will reach out to you tomorrow with your license
information.
OK, you can go.
Thanks.
All right, so now we're going to go to item 32 and 36.
We don't need to go into closed session for those items, right?
Do we?
I don't think so.
So as part of this, so this is like the seventh amendment to the second.
Well, it's the seventh amendment to the second development agreement.
Is it the second or the third?
So.
I'm going to mention the first of all, I'm bringing in the second amendment to the
second amendment to the second amendment.
OK, so when you start hearing things like there's seven amendments,
it's like there's a lot of stuff going on over the course of time, right?
So Cobalt is here.
And what they wanted to do, because it's sort of you can get confusing, right?
It's like, well, what do you mean this restaurant?
What do you mean?
So wanted to provide a more universal global overview of what's going on, OK?
Which Deb and Mr.
Yolk apparently have been vigorously going through negotiations and discussions to make
sure that the city, Deb, that our interests are taking care of and Scott to be in another
magazine cover or something.
That's it.
Probably.
No, I don't know.
No, he's.
So if we have it, can we start it?
Yeah, come on up.
And I think there's a mic there.
Oh, yeah.
Let's see.
Close it.
Close it.
This one.
They might not like that.
So is it on your area monitors working?
So this is trying to put everything that's happened with hit six and today in perspective.
As best as I can do that.
Good evening, Scott Yolk with Cobalt Partners.
Thank you for letting us present for you this evening.
And thanks for having the rain clear up a little bit.
It was pretty heavy coming down a little bit ago.
So just wanted to give an update as the mayor indicated.
And we're going to go through just real briefly, 84 South and then Loomis Crossing.
So project updates.
Some of this you know, but it kind of picks up where some of the prior amendments left
off.
We've got a site plan that shows all of you guys see this in your screen in front of
you right where we where we left off previously.
There's really one remaining parcel now at 84 South, which is the one highlighted in
yellow.
And that's the one between Steinhoffals and the parking structure for the Aurora Medical
Office Building.
If you want to go next slide again, some of the images of what was there prior to this
you're all certainly aware of it.
But you know, really proud of a lot of the buildings over there in the architecture and
where this is and we are down now to the final parcel.
When we were here back in 2015, it's a long time ago and set up the TID and the PUD.
We had projected increment about 114 million.
As of the most recent report this year, it's 226 million.
So it's significantly higher than originally projected.
So that's certainly good news.
Recent things we've completed here are Cooper's Hawk, as you know, on the corner that I think
has really been very successful and we're pleased with what's going on there.
Next we Chipotle that you know opened recently and then we've got Starbucks that also opened
recently and then Kava's going to be opening in the place where Mod Pizza used to be.
Mod closed down most of their Wisconsin locations, but Kava's coming and people are really excited
about that.
So again, the one remaining parcel, I know that the mayor has made it no secret that
he'd love to see a hotel here and we've been working on some other retail options at that
last location, but I think a hotel really brings a nice component to a mixed-use development.
It's nice to have the grocery, it's nice to have the medical office building, the residential
and the right mix of restaurants.
The hotel would be a nice addition to that.
This particular hotel flag is called Cobblestone and they're based in Nita, Wisconsin.
They've got about 160 hotels in about 29 states.
We had gone to the grand opening and I know the mayor attended and Aldrin Bailey attended
as well and got to tour this very nice product.
We have other hotels that we own and operate, some home to suites and Spring Hills.
This was the inside and the finishes were just as nice as those products.
It was really very impressive.
So we are working with this group to bring the hotel to this final parcel itself.
They tend to be in, I would say, they're not in the larger cities.
They tend to be in cities, you know, the size of Greenfield and even smaller.
They've got three different product offerings, but this is their highest end offering.
They call it the upscale Main Street product.
It would have a pool.
It's got kind of a lounge area.
The one we toured as a restaurant, that wouldn't be the case here, but it has business centers,
conference rooms, fitness centers.
There's a couple of suites and then there's just the regular, you know, non-suite rooms
as well.
You can go to the next one.
They've got a rewards program and so forth.
They're excited about that location and kind of the mix of the amenities that are there.
So that's the latest 84 South, 84 South and I'm sure the attorney time check will talk
a little bit about this.
You may recall there was a point in time, I forget when it was, but one of those amendments
when there's some transfer from TID-6, which is 84 South to TID-8, which is Loomis Crossing.
So a lot of what happens at 84 South.
Some of that feeds into Loomis Crossing, so it's good that 84 South has been the success
that it is.
So then going to Loomis Crossing, you can go on to the next one if you would, please.
Thanks.
This was back when we kicked off this project.
There were a number of parcels, a fair amount of acreage here and two phases, two sides
of the interstate, as you know, and it had a very low tax base, a little over $6 million
of tax base.
Ultimately, this will be close to $80 million of increment.
We assembled all these various parcels at the time to make all this work.
If you want to go on to the next one, I don't think it'll go through.
These are slides from last time, but really there was a number of challenges here that
was the old DOT, Park and Ride, it was tax exempt, there was the ATC transmission lines
that run through there.
There were some other AT&T infrastructure that had to be removed.
There has been a fair amount of environmental cleanup, nothing real significant, but things
that are spread out given some of the prior uses that were there.
So we had a number of challenges to work through at the same time, assembling lands that are
ultimately going to be conveyed to the turf park along with the parking facility and parking
area that we're building there at the next one.
I think I hit all those things and go on to the next one.
And so again, a lot of the images of what you see there today, and if you see in the
lower right corner, that's the parking lot that's under construction.
If anyone's been by recently, you see we got all the curb and gutter in, or most of it
in today, I know the mayor gets out there a lot and checks on what's going on and we're
making good progress that parking lot will be in the next couple of weeks.
We've got two of the multifamily buildings that are complete at Luma's Crossing Apartments
site that we had a meeting today with our partner on that.
We're at 100% occupancy right now.
There's no vacancies at the moment.
That ebbs and flows every month, but we've had steady lease up there.
The last building is 114 units, which is the largest of the three buildings.
We'll open next June, so you can see that if you drive by certainly under construction
and we're on schedule there.
If you want to go on to the next one.
So I'm going to leave this to Dabby, but there were some things that in the amendment
that you see today, where we used cities and secured throughout the duration of these
amendments, and that the structure set up in a way that certainly is protected for the
city and the taxpayers, and I'll again, I'll let the attorney, Tom Chick, talk about that.
If you want to go on to the next one, please, you can go on one more.
There's a number of costs, though, that are being covered in excess of about $5 million
for land that was acquired.
There was a point when the city had purchased some of the parcels that were there for about
$1.3 million.
Those dollars were paid by the project back to the city, as well as other parcels that
we acquired.
All of that land, which is in excess of $3 million of purchase price, will be conveyed
to the city along with the construction of the parking lot for the turf, as well as the
former DOT parking ride lot, which, through the efforts of the city, the number of parking
stalls that the DOT wanted to retain went from about $150 down to $39, something like
the mid-30s, so that certainly helped.
That demand for the parking really hasn't been there anymore.
Again, Lumis Crossing apartments, you'll see, we're in the final building, which is the
one on the farthest background, right?
That's under construction now.
If you want to go to the next one, just a couple of images of what you might recall
a little bit before we started not too long ago.
It's kind of hard to remember what was there, but it's quite a change, as well as
the Lumis are late in reconstruction and on the Lumis Bridge, so that area is really
seen a big transformation, I think, gives some more images of the apartments.
And then the final phase now is the technology park, and we've been through all the approval
process for the buildings there.
There's three buildings, totally about 250,000 square feet.
The first two buildings, give back just one for a second.
The one at the very top that's outlined is building A, and then building C is the one
down at the bottom.
The top one's about 122,000 square feet.
The one down along the freeway is 89,000 square feet.
Those two will start construction in September.
That's our plan.
We're really ready to go, and frankly, down to the wire.
If we need to release some things as early as tomorrow, so I'm glad we're here today
on precast that has to be poured, otherwise we'll miss the window.
But that's building A, and there's a next slide just shows an image of what that building's
like.
These, as you may recall from when we came through the process before, are really what's
called flex type buildings, so they have an office component, typically 20 to 40 percent
of these are an office type use with other either processing showroom, you know, things
in the back of the building.
So they're not heavy duty industrial buildings, they're quasi office buildings.
The next one, that's just a floor plan of that building, and then building C, the one
at the bottom, is similar look, I mean, they'll all have a uniform look, and then the last
one, I think, is just a floor plan.
So that's kind of the overall, just want to show you some images and kind of pictures
of what's going on, what the plan is.
I can answer any questions if you want now, and certainly turn it over to project.
Yeah, okay.
Any questions up there?
That can answer is done.
My only question is, how many projects does cobalt have in the works in southeastern Wisconsin
at this very moment?
Well, there's probably 10-ish, some happen and some don't happen, so we, we, you never
know what's going to go all the way through and what isn't, so sometimes projects are
out there that are underway that, you know, for whatever reason, a user doesn't materialize
or there's due diligence issues, but yeah, it's in that range.
I just, I'm concerned about the ones in Greenfield quite honestly, can you prioritize those?
Yeah, we are, well, we, we, this, I mean, you know, it's going to sound like I'm sucking
up and maybe I am, but, but this 84 South has been a really special project from us from
the beginning, and it was one of our early projects for the second to the one in Monomony
Falls, so we love that project.
This project finishes everything out.
This will actually fully build out 84 South and fully build out everything at Loomis,
and I think if you look at the quality of the building's architecture, they're really,
I think they're pretty special.
Any other questions I can answer about the slides?
Okay, I'll get out of the way.
Hi, Debbie Tamchek with Brinehart Burner, and we have been special counsel to the city
on the 84 South and the Loomis Crossing projects, and you all should be commended because,
as, as Mr. York indicated, the successes here are really admirable, and I think admirably
admired by other municipalities as well.
I didn't kill a bunch of trees to bring copies of all documents, but we're happy to do that.
Really the, the documents themselves are pretty simple.
There are two amendments to existing development agreements as the mayor indicated.
There's a seventh amendment to the 84 South development agreement and a second amendment
to the Loomis Crossing development, but this is a summary of the terms that we've been
negotiating.
We do ask that we're not 100% final, but I think we're just down to language changes
at this point, and I know there are timelines that people are trying to, to meet to keep
the development on, on track.
So in the 84 South development agreement, as Mr. York indicated, when there was a projection
of $114 million worth of value increment, and you're already at $227 million of value increment,
so almost double what was projected, and that has created great, another great opportunity
for the city because there is positive increment that can be allocated and has been allocated
already to undertake some infrastructure improvements, the turf, things that didn't have a source
of funds without that, that 84 South increment.
So what's being proposed in that 84 South amendment is that up to $6 million of positive
increment would be allocated from TID6 for infrastructure for the turf, for the turf's
parking lot, and those are things that, that Mr. York indicated his companies already started
to undertake, have already been constructed, so we're incurring the cost already for those
that, that infrastructure work, and we need to pay for it.
In the meantime, we've gone back and forth with our financial consultant with Ellers
to make sure that we can still continue to cash flow, pay existing debt, pay what's projected
in all of the, in all everything that's coming forward, and we've asked for commitments from
Cobalt to do all the wonderful things that you saw on the screen, and to make sure that
our projections of revenue will actually be realized.
So the one remaining pad that has yet to be developed at 84 South will generate additional
increment, another $8.5 million worth of value, and we're asking to ensure that Cobalt actually
produces that.
That's really the essence of what's happening at the 84 South Development Agreement amendment.
It's actually pretty simple on that side.
To be clear, too, with regard to the $6 million of transfer, about a million, million, two
is for the turf, and I think it's about right, and the rest is for the traffic signals and
for the rest of the stuff that's required.
I actually think one of the slides had everything immemorated, it was back for the, it was one
that my old eyes, it was, go forward, it was with the highlighted yellow, that was the one
I couldn't read, because there you go.
That's actually the enumeration of what that infrastructure cost is.
On the Loomis Crossing side, again, we're looking at a second amendment.
We've already actually there achieved $48 million worth of value increment, and that's
with the medical office building that's completed and the two multifamily buildings that are
complete.
As you know, the third one is under construction, and Cobalt is committing to complete that
timely so that we have additional increment that's being generated.
They're also committing to the development at the technology park to the north.
And Cobalt, again, when working through all the projections with Ehlers, they're committing
to and recording short roll covenants on the properties that they own to make sure that
the revenues that we're projecting are actually generated, so that we're sure we have that
cash flow that we need to continue to pay the bills.
In fact, Scott is actually personally guaranteeing a couple of the significant payments that
will be needed through that cash flow, $500,000 in 2027, $550,000 in 2030.
And then the city's obligation will be to allocate those TID-6 increments, primarily
for infrastructure for the turf, for the technology park, including the signal.
And the city has an existing mortgage that they will retain on the third of the three
technology park pads at the north, and that also enables us to make sure that performance
continues to happen.
But then when we refinanced some existing bonds that are outstanding in 2029, we'd have
some additional borrowing, $2.75 million to fully fund out all the infrastructure at
Loomis North, including the turf, and be able to have the city release a guarantee that's
currently outstanding on one of the borrowings that's out there.
Other development things that we'll be considering is one of the extra potential developments
at Loomis Crossing would be a potential restaurant pad.
And then there'd also be consideration, and these are things you haven't committed to,
but you'd also have to consider an existing static billboard at 10123 West Oklahoma being
converted to a digital billboard so that that would generate some additional revenue.
So those are things that would be additional revenue sources for some of the North Loomis
development.
We have negotiated almost all of the language in the two amendments, and we have copies
of all those, but we're not quite final, and we would ask that if you're considering
these two amendments that you delegate to staff to work on the final details and then
authorize the mayor and the clerk once we have final documents and all exhibits, including
Eller's final blessing on the projections, which we now have Department of Revenue
Numbers for to validate that all of our numbers are correct, and then only when everything
is signed, when the recorded shortfall covenants that Cobalt is committing to make sure that
they can make those payments and that the revenue we're expecting will be in place,
only then would we actually consider the additional transfer of the TID-6 funds.
Sounds like a lot.
Questions, thoughts?
I do have one question about, it says your third bullet point, 84 South, with preference
for a hotel.
So if the hotel does not happen, what's, what is going to be there?
I don't want to speak to what's, you know, but my concern is mostly the revenue part
of it, so they're agreeing that the revenue that we've projected from a development that
I think you may have heard about in the past will be there whether the development happens
or whether it's a different development.
And I'll let Scott answer what that would be.
Yeah, the plan, we have been working on a retail, it's a combined, it's 30,000 square
feet of two retailers, one of which is done and approved through what they call Real Estate
Committee, all these national retailers can go through this process.
The second one is not, to that point yet, they went through a first round of it and had approval,
which is preliminary.
So we do have a backup that we could probably pursue, but the preference now has been the
hotel.
We're on board with that idea, we like it, and I think I don't see anything really getting
in the way of the hotel moving forward.
So I think that's likely what you'll see.
If I had one other thing too, and I know Attorney Time Check mentioned this allocation
of those dollars, right now there's a model, there's a financial model that she referenced
that Ellers puts together.
We go through it every year with Ellers and with city staff and it gets updated to reflect
all the actual numbers.
Nothing in this plan right now transfers more money than was previously transferred, it
moves it up.
So we've had these conversations and I know Attorney Time Check might not disagree, but
she probably doesn't want to make those representations.
But there's not an additional transfer of dollars, that amount is staying fixed.
What's happening is the recent numbers that came back at 84 south are about 10 million
higher than we projected, I want to get complicated, the mill rate has to be determined yet.
So that could change what that revenue is, but we're 10 million higher, we had a very
conservative projection.
So we're 10 million higher on the equalized value than what we thought we were.
So there's added revenue and then with the development at Loomis there's about 25 million
of additional development there, so that's helping create all those sources.
So again there's not an additional transfer, the amount of transfer that's been authorized
was authorized by the council and that number doesn't change and I don't think it can change
without further authorization.
So it's not changing, the timing is moving up to do some of this work is really the difference.
So going back to my question, I was like a politician, I answered that wrong question.
It sounds like you're fairly certain that the hotel will happen or...
Yeah, but if it doesn't, then it would be retail, but I mean we can't, it took that
parcel and maybe to Alderman Caster's point, it isn't our lack of focus on that.
I mean retail, it really leased up quickly and then it kind of peered out for a while,
we had COVID and a lot of other things had happened.
So the other problem is if you look kind of universally, there's almost no new retail
construction happening without TIFF.
The numbers just have not caught up the rents that they're willing to pay, so that's been
a bit of a struggle as well, but they're starting to recognize they get to pay a little more
rent.
So we're very close under a different user group being those two retailers, but the hotel
will happen.
I feel pretty confident.
I mean they're ready to move forward.
Great.
And then I just have a question about the digital billboard, which I'm not really excited
about, but can you tell me a little bit about, is that going to disturb?
It's the location of an existing sign that was there about 110th in Oklahoma, and so
we're able to, by converting it to digital, a couple of things happen, one, we can create
more revenue, which so there's a $250,000 that we kind of commit as a result of that
conversion to helping the gap.
We had a gap on here, and as attorney Topshick mentioned, through a lot of efforts that turned
into us coming up with about a million won, roughly toward that, and one source was through
that.
The other thing with those digital signs, you can create this condition where the diodes
are faced a certain way, and if you move out of a certain distance, you don't see it,
they kind of black out, so they adjust at night from an ambient perspective, and we
also allow some community service announcements and public usage on that.
We've done that in the past with the turf.
Why am I having a hard time figuring out where we're 110th in Oklahoma?
No, I see.
So this is the off-room to get off on a one-place cell phone.
It's by the rehabilitation.
I would call that one of a heart that the rehabilitation has to do by the printing shaft.
That's by 101st.
There's existing static sign that was there, and we just took it down.
Our intent would be West Dallas.
Are you interested?
It's 101st.
101 or 110.
101.
I'm sorry.
I got my...
So, with regard to that sign, there isn't any intrusion into residential properties or
anything.
It's clearly on the freeway.
Yeah.
Yeah.
West Dallas across the street.
They're not asking for that now, but they're asking us to essentially, when it comes through
to B.
So, we're not asking for any approvals of any development opportunities, including the
static sign today, other than that you'd consider it if it comes forward.
We're not asking you to approve what happens at A2 definitively on the Loomis Crossing,
or an...
I'm sorry, an 84 South.
What we are asking for is the financial deal that you consider approval of the financial
deal.
And all the things we talked about are components that will provide revenue to make sure the
financial deal works.
How did Cobalt get control of that location?
On Oklahoma?
Yeah.
I think they probably bought the sign.
We did.
Yeah.
The sign?
Just the sign?
Well, an easement.
And it's really an easement.
Yeah.
Okay.
So, the building that's in the current shape?
Yeah, not the building.
No.
That will stay the same.
It's a little rough.
And on that highlighted list, you showed that you have to make additional costs to make
it a city standard.
Does that mean we're taking possession of the streets?
What are you talking about?
I didn't follow.
Sorry.
I don't know.
It's halfway down.
We had sub road, utilities, city standards, 825.
Oh, is that in the list up there?
On that?
Yeah.
Can you read?
I can't see it.
I'm sorry.
What bullet is it?
Stop.
Oh, I have to know.
It says, stub road and utilities at city standard, the fourth from the bottom.
Oh, so, yeah, that's part of the, at the interchange coming in.
There's a 250 foot segment of roadway that'll go south east, mainly east, off of Loomis.
That's got to be in, I mean, maybe Jeff Katz can, a pine tube, but that's...
The adjacent to a state-of-the-light.
Control light.
Yeah.
Yeah, signalized intersection.
And there's a bunch of off-site work being done, but the totals are, but that's that
stub road section going into the, to the east.
The 900,000 that you see on there is the turf parking lot.
Correct.
Along with some of the...
Some DOT, too.
Yeah.
Okay.
I'm just, we are not taking possession of the entire industrial or...
It's private.
It's a private road.
That'll be a private road.
That's still a private road.
Correct.
Yes.
And we just need to be that city standard on that 250 feet, I believe.
Because it's intersection with a state highway, there has to be just a small segment.
Yeah, I got that.
I was afraid we were taking possession of that whole road.
Yeah, no.
I'll be dead by the time you have to put a new one in, but I still care.
Yeah, all private.
Okay.
So, one thing I think that sort of gets lost sometimes, I mean, we...
The four south, when we started, it was worth six or seven million dollars, which is
10-6.
Today was worth six million.
So a total of about 13 million dollars of taxable tax base, right?
Which we're still getting taxes on.
I mean, that base is still there paying taxes.
If you add up the numbers, and we have looked at these numbers, and they're accurate and
they're reported to the state, we're almost at 300 million dollars of new tax base or
280, 290, something like that.
How much?
But when it's gone, it'll be 300.
It'll be 300.
So, while this is complicated, I mean, this is the struggle that we have sometimes, it's
like, while this is complicated and Deb's expensive, right, and very good, and she's
being paid for by him on our behalf.
And while we...
So while we do all of these things, right, we're leaving a legacy in the city of a tax
base of 300 million when we started at 13.
And by the way, we're still collecting the 13.
So that's pretty good.
So it gets complicated and we talk about seventh amendments and we talk about the price of
lumber and we talk about the price of steel and we talk about all of these things and
we talk about having to have hugely times on concrete precast buildings, and electrical
controls, and toilets, and all this other stuff.
And we talk about creating a turf, right, and trying to get some benefit immediately
out of the 300 million dollars of new tax base that we will once enjoy completely.
Well, the turf we had to do because we got the land for the price we got.
So while we got the turf for a buck, but to be honest, we didn't really have a place
to park.
He was going to build a...
These are some of the other discussions that you may not...
The original parking lot was anticipated in the modeling to be about 200,000 dollars.
This parking lot, and if you drive by today, the 90 stalls and the interconnectivity, we
have created a destination for the Midwest's second largest skateboard park, which has
historical underpinnings with Tony Hawk's turf card from 1980 is actually being auctioned
right now in line.
I don't know if I sent you guys to that.
So this is like a hollowed ground now.
I know this isn't the packers and this isn't any of those kinds of things which go back
to the teams, but as far as skateboarding and this sport go in the world, this is a
sacred place, and it's in our city, and through all of these amendments and all of these things
and all of this posturing and all of the arguments and all of the...
You can't believe you're doing this to me.
Discussions that we have, we've created something pretty special, and then we can start working
towards expanding the skateboard park, by the way, someday, and be the largest skateboard
park in the Midwest that has every single skateboarding feature there is, and there are
not many skateboard places like this in the world.
I mean, Jeff and I, we get the turf.org, we get emails from people all over the place
that are just...
And if you go there on any given night, while it's raining tonight, there's 50, 60, 70,
90 people there.
I'd encourage you to go there on Saturday, and I know I'm making this about the turf
and not the hotel and all of that, but even the hotel, it's taken...
Well, by every candidate, every person that's run against me saying, why don't we have
a hotel?
We should have a hotel.
Why don't you get a hotel?
Well, in order to get a hotel, you need a hotel study, right?
And you have to spend four or five hours with a hotel consultant driving around the city
explaining why we should have a hotel and why it will work and look at this and look
at that, which I did about a year ago, a year and a half ago, right?
Then she went to 84 South with me, and I think we had lunch at Cafe Zoopers, I can't...
I bought it, she didn't buy it.
Didn't ask for him, but I get an expenses, right?
And she's like, this is like the kind of thing where it would be natural.
She didn't say that right away, and I also asked about a hotel near the turf, and I
took her over there and we saw the Mexican restaurant, which doesn't look quite as nice
as it does now, and there was like an apartment and a half building there, and the Greenfield
Coin Exchange is still there, and it didn't look all that, she's like, you know, maybe
three or four years, this might be the place, but right now this isn't the place, right?
So all of this stuff, and I can't believe we've been doing this for 10 or 15 years,
it takes forever to do, but if you have good quality people behind you that have sort of
the vision that are kept in line sometimes by financial people with maybe cooler heads
and legal people to say, no, no, you know, just not jump ahead there, right?
Maybe good stuff can happen, and I think in this case, with both TID6 and TID8, we're
properly leveraging things to make the city a better place in the long run and to survive
as a first-range community around sometimes a struggling, bigger city, right?
We have to do these things.
For everybody that owns a home and everybody that owns property, we have to do these things
to make the city a place to live and prosper.
So would Deb ask such a hard time with this?
Why you?
I don't know.
I mean, while we're looking at right here, I don't see how it's being funded from all
the things we're doing.
I don't see any of the funding going towards the assurance back to Shirley's point that
this will get developed in this manner.
So this is the thing with the, if it's the hotel, if that's the part, you know, we're
going to do all this stuff and he's going to do the best he can with the hotel.
I've been, so it was going to be, and I will generally say this, so if you don't object
or I can say whatever I want, kind of, if the president can, I can, sorry, I shouldn't
have said that.
You can't afford to be sued like him though.
I, well, I'm sitting, well, I'm sitting up here, I can basically say anything that,
I mean, that's kind of a lot.
We have some sort of immunity while we were conducting businesses.
I think that's a little, Ryan, can you verify that?
There are limits, but yeah, but I'm not trying to get into that part.
The point is that three and four months ago, it was going to be retail and that's what
it was going to be, and the modeling that we were going to do was going to be that.
And I didn't like that.
I wanted a hotel, in essence, and we had a hotel study finally that said we could have
one.
You can't get a hotel without a hotel studying.
There's no financing of it.
You can't do it.
You can't have, without that, you can't have it.
Are you in this proposal, are we seeing that there's going to be a hotel with funding
that we're going to do?
So this is the matter of trust because I have met and Bruce met the owner of the hotel chain
or one of the owners of the hotel chain or one of the guiding principles who is like,
we want to be there.
You don't trust our president, so how can you trust this person?
Because he's not our president and he's a guy that wants to build a hotel.
Because I've taught, I do, I, yeah, I don't trust our president sometimes.
That is true.
And I'm kind of a Republican-y kind of guy, and I've said that publicly, I'm sort of
trying not to say that too loud because we're in a purple community, but I'm also like to
fish and I like the environment and so I'm kind of a Democrat when I come to say that.
Well, there's one fuzzy feeling from talking to this person.
So I'm supposed to get it too?
You're supposed to get what?
A warm, fuzzy feeling you got from this hotel person?
If you, I invited you and I invited Gina to go that same night and I was hoping that
you would go and I was hoping, and I knew you had other things going on and you couldn't
make it.
Yeah, my life had complicated.
But yeah.
So, and while we're straying from this, I have a warm, fuzzy feeling and I have a sense
that yes, this hotel is going to happen.
The civil engineers are already working on the layout as I understand it.
They're already looking at the utilities.
Part of this, it's been laid out on the site.
I've seen some of the site plans, yeah.
The good thing is that the utilities are there, the parking is there.
It requires a pad and it requires to go vertical and no city funding and no city funding.
What do you think we're talking about?
Do you know how much it costs to build a hotel?
It costs about $13 or $14 million to build a hotel.
Do you know what the assess valuation of a hotel is once it's built?
Seven or eight.
Seven and a half.
This modeling assumes, so that other half, the expensive part, right?
The equity pays for that.
Part of it, the other part is coming from us to help subsidize the financing over the
course of that.
And that's what we've, I hope I explain that right.
Did I miss the slide that shows that?
We're borrowing from the equity valuation to be able to actually pay to do these things
in the first place.
There's some funding coming from the city for something that could probably explain
much that's inherently what's happening is we're borrowing against the 226 million
valuation to actually continue to do.
We're using the instrument that's generated from the hotel and all these other sources
to do what you're saying.
We borrow at a 20 or 30 years ago.
I just don't see it.
I don't see the picture.
That's right.
That's right.
So, and to your question about what happens without, there is no guarantee of a hotel.
But if, what there is a guarantee of is that the projections that, and the revenue
that we're expecting through the model will be there because if they're not, Scott and
his company have to pay that, or he could love his special.
But there's a, there's a mechanism to make sure that the funding will be there.
So if, if something doesn't come to fruition that we're expecting, we have a revenue source
to make sure that that happens.
So he has yet another incentive to make sure that we're actually bringing the development
that you want to see.
It's, how much are we given to the hotel?
I'm sorry, what was that?
We're not giving anything to a hotel.
We're not giving anything to a hotel.
There's nothing in here that says anything about a hotel.
All this says is that there's going to be something there.
It's going to generate increment.
And all of these interrelationships between six and eight will work.
That's essentially what it says.
We're saying that if it's a retail building that's worth three and a half million, three
and a half million, eight and a half I think it is.
The retail is, is an eight and a half, well they, so that's the parking lot is.
So the hotel generates more increment if we can get it.
We want to get it because it's worth more.
It's seven and a half million versus three, well, it's two and a half million dollars
more of increment if there's a hotel.
And if there isn't a hotel, everything else on today works, right?
The industrial buildings start going up and all this stuff happens and everything is good
and the signals start going in and all that stuff, right?
We're saying that the hotel is likely going to be the thing that occupies that site and
it's mixed the model kind of better because there's more money in the model because the
hotel is worth a million and a half, two million more, right?
Does that make sense?
I'm still lost on how the hotel is going to be built with money because I don't see it
being itemized down here.
There's no lights.
Pretend there's no hotel.
We don't know what's going to go there.
It could be a trailer.
It could be a trailer park, but he's guaranteeing that there's going to be the number going
to be there.
Okay.
On the projections will be there, but what generates that?
We don't know.
And how much money is going to go towards?
I see what street lights are being projected to go towards the hotel.
If there was a hotel development, it would come back to you.
You'll have to approve all the pretty pictures and the site plan, et cetera.
Well, I got that, but where's this money going back to that site?
There's not any money going back to the site.
So the hotel can build this is where I started without city help.
So if there would be any city help, none is proposed today.
There would not be any unless the city would authorize that in the future.
So there's no funding from this move to fund a hotel.
That's correct.
We're just hoping something adds so we can afford things that we've already approved.
So what this does do is ensure that the revenue that we projected in the model, including
revenue from development on the yellow pad, will happen.
And Mike just told me it can't be built without having city help.
So if the yellow pad does not develop as anticipated, which right now we're actually
using the lower retail projection number, then there's a shortfall covenant that will
be recorded against the site.
And if there's a shortfall in the revenue that's generated, Scott and his team have to
write a check.
I don't think either one of those could be built without city funding.
Well or retail establishment was going to be built without city funding.
Retail is not proposed for any city funding.
It's not getting anything.
We have all those numbers.
The short for the hotels and I don't want to get into all of this stuff because it's.
It's too speculative at this point.
It is very.
If there was a hotel proposal, it might come back to you and there might be a request
for city funding.
But that's not what we're asking for today.
We're asking for the hope that this gets developed so we can take the money from that
development to find something that we've already approved.
So TID6 already has ample cash flow.
Ample increment has been developed.
227 million dollars of value increment is in the ground there today.
The only add-on would be the yellow pad at eight or so.
All I can say is you have to trust me that it's going to work.
And we spend days and days and days and days and days going through every single iteration
that there possibly can.
And everything that's in this agreement to do this or the seventh amendment and the
second amendment is to make sure both kids get built out the way they need to.
The hotel.
This is so Scott over the years has promised a lot of things, right?
And I'll just say Scott, Cobalt, the team has promised a lot of things, right?
They have.
And sometimes it pains me to admit it, they've delivered on every one.
Except a hotel.
And Cafe Hounder or the beer thing on the corner, right?
And neither of those were his fault.
That's that he is delivered on everything that he's promised.
And I, there are no other, and I'm not trying to be like, oh, look at what we've done.
We've turned 13 million into 300 and it could be 308 if it's a hotel or it could be 306
if it's a retail center or 304, right?
And I have one thing that maybe helps to the, most of the, when there's TIFF in most communities,
end result is community gets a development, but there's not a, there's not a something
added to the city's balance sheet.
But through the TIFF, and this is kind of the struggle that it's kind of dawned on me
as we work through this over the last, it's been like five months.
You know, like I said, there was that million two that was I think out of the sewer fund
I don't where came from, but the city had spent those dollars at one point.
So that got paid back the land we bought, you saw it itemizes about, I think, two plus
million dollars.
But when it all said it's done, there's about five million dollars of value going basically
to the city's balance sheet to a parcel that's tax exempt where we can't create increment.
So that's kind of created some of this gap.
But the end result today is there's no additional transfer.
So I mean, we're kind of talking about this transfer, but the transfer is not going up
from what it has always been that was approved, you know, a few years ago between Ted six
and today.
What's happening is we are creating more increment at 84 South and then we're creating
about 30 million of additional increment at Loomis.
So all of those become the sources to make all this happen.
I can tell with the hotel, I mean, short of something that just is outside of our control,
I mean, we'll build the hotel there.
And this group is local, he's based on a Nina, I've spent months working with them.
And as a mayor said, there was a hotel study that was commissioned that was paid for by
the project to do both a study and then creation of a pro forma.
I mean, in the end.
So what about all the person casting his question?
Where's the money?
Where can you see the money in all of this to build that hotel?
I don't follow the question.
So that I think that's your question, right?
But I'm not sure.
Are you going to come back to us and ask for money for the hotel because they're this
close to getting the hotel.
Yeah.
I mean, needed to use the tax revenue from the hotel room in order to do it.
Is that coming back to us?
Because it may.
Yeah.
I mean, it's a hotel.
And I'll say, yes, we want to do that.
But let's be living on a table.
Yeah, for sure.
And no one's trying not to.
We're just not to that point as Debbie said, what we modeled in the current model is not
include that hotel.
It includes just the retail, but likely it needs some help.
I mean, yeah, I think that's right.
You're telling me the retail does not need any assistance.
Correct.
Right.
Right.
Whatever.
Correct.
And can be built and will be built.
But the retail is not done.
Like I said, just to be clear, there's always, you know, there's always something, right?
And it's waiting on an approval.
I don't think it creates the best.
I think the hotel creates a better mix of sustainable uses, you know.
But correct.
That's right.
Who's going to pay for that gap in between there?
Yeah.
Well, I mean, there is a couple million.
Yeah, there's, you know, two and a half, three million of additional value there that
that may be sufficient to cover that difference and the hotel tax could cover some of that.
But, and I'm not trying to misrep, we don't know yet.
We're just not there.
I got you, but.
But yeah, it may need it there.
You're right.
There's nothing in this model that funds any gap in the hotel's financial performance.
That's that's accurate.
Okay.
Does that make sense?
This is my first blush of this.
Yeah.
Okay.
Okay.
Let's fair question.
Yeah.
Okay.
My discussions with the hotel guys said he's very excited to be there and his partner is
very excited to be there.
There's a small shortfall annually with regard to the financing models that they would use.
Part of that depends when you look at the hotels too and you go to a hotel and you say,
you know, I don't want, um, drive it or what do they call it?
Yeah.
Yeah.
You don't want that.
You want a, you want a better fixture finish.
You want it to look better.
You want those are all per square foot things that go into a financing model, right?
I mean, it's all of that.
So we don't even have a picture.
So we went to look at a hotel and I, there were things that Bruce and I, I think we said,
well, you know, it would look better like, like that we didn't say that, right?
And it's like the guys like, yeah, we can do that.
We can do that.
It's all different.
We have construction people.
We have contractors.
We have, you know, we can, we can figure that out.
So when you don't even know what it is yet that you're building and the materials have
an impact on the cost of the building, then it's hard to completely financially model
it.
But as I understood it, it's close.
I mean, it's like really close.
So that's all I could say and I don't know if I've misrepresented anything or if I said
anything improperly, but I think that's kind of where that's at.
I'm done.
Yeah.
Okay.
I mean, I got the answers out loud and that that's a, that's, but that's true because
you can't answer yet.
You can't because you don't know what the numbers completely.
So what is, okay.
So I think where that was item 32 and we're in 36 combined and that was to discuss and
take actions regarding the investment of public funds and then was crossing and entering
into agreements relating to such investments as delineated by our, our council denied in
the proposed 84 south and was crossing development agreement amendments, which is
amendment seven to six and amendment two to eight, which are in process and substantially
comply with the items as they're placed on this piece of paper.
So I'm a, a, we can call special common council meeting if we have to with regard to these,
you know, if you want to see what the legal, the legal mumbo jumbo looks like or you can
be provided with copies of the draft agreements that we have that are need ministerial changes,
truly ministerial, I think at this point, everything has been agreed to, I think, right?
So our satisfaction, Deb and I have talked on the phone way too much about this, I think
at some point, I feel very comfortable that where we are is good.
And I feel very comfortable that the agreements that I've seen the last draft, which was this
afternoon, there were two of them, the seventh and the second, were where they needed to
be.
There were a couple of things that you wanted to verify with regard to covenants that needed
to be filed.
None of this stuff is, is effective until the things that are discussed on the status
down below are taken care of.
That's the checklist.
So I guess I'm looking for authorization to execute the amendments that are consistent
with the agreement amendments as they identified in this memorandum.
I will make it almost by elder person, Serena, is there a second?
Second.
Second by elder person Bailey, under discussion, it's also under, just under discussion when
it gets to the part of the hotel, which is pretty kind of exciting for most of us,
right?
All diversion casters absolutely right, there's still more to do, right?
But there seems to be the resources within to six to handle it at that time.
None of that is being addressed with regard to this amendment at all.
All of that, whatever the hotel might look like, what kind of treatment it has, what
all of those things still has to go before site landscaping at planning, or planned
planning, I like to call planning commission, others call planned commission, right?
All of that stuff has to happen in any other further amendment, which could potentially
be amendment eight, right, with regard to the hotel would be coming forward in the future.
Okay.
All of the bill of rights, it's a ten or twelve, first ten amendments to the Constitution
Bill of Rights.
I didn't know that.
So we have.
Are you just to get some money?
Huh?
What?
I kind of knew.
That's why I'm a mayor and those guys are making 500 bucks an hour, so, or 350.
She makes really good.
I don't know what he made, volume, I think.
So, okay, that motion was made and seconded, and just the minute should reflect that there
would be, we'd be coming back for any revision to the schedules with regard to the hotel.
We would have to do that at some point, right, or nothing.
I'm not asking for any approvals for the hotel.
It's not baked yet.
So this is just to authorize the mayor and the clerk to approve the final amendment.
So, yeah, this isn't, this isn't, this is the wet the appetite that that's coming in.
We're, we're working through that, and that chid six is going to have even more increment,
and the last parcel is going to be, you know, likely built, okay?
So this, don't vote for this, well, it includes a hotel.
This isn't to include a hotel, but this was to, to show you what both things were doing
and how they sort of intertwined, okay?
So, motion was made and seconded.
I mean, I would, I would, I would ask the council because, because at the planning commission,
there's always conceptual review, then site landscaping and all that, I've been told
that potentially, and maybe it's too late in the building season, I've been asked whether
site landscaping could go maybe directly to the plan commission, maybe an expedited basis,
maybe it can't, I don't know, right?
There's still lots to do, and would you be okay with that?
Well, if it's happening that fast, why don't we wait till that happens, then we can look
at the final numbers and we don't need it.
Apps, well, did, just, we wouldn't need the eighth thing, we could do it at seven, and
calculate all of it.
Sometimes, sometimes, sometimes the, the speed of government is very slow, and, you know,
it's like, well, we could, by the time this gets into the winter constructions season
and by that, we should just wait until spring, and then everything changes again.
I know, but, I'm just saying, okay, motion was made and seconded, would you please call?
Alder person, choose wiki.
Aye.
Alder person, Bailey.
Aye.
Alder person, Kastner.
Aye.
Alder person, Sarion.
Aye.
Okay.
So, that's done.
Thank you all.
Let's go back to 33.
Okay.
Got it.
Thank you.
Okay.
So, now, we have to go to, just, let me just cross things off.
Now, we're going to go in closed session.
All right.
Item 33 is the Common Council, we're going to have to go into closed session, pursuant
to Wisconsin statutes 1985, parent 1, parent C, considering employment promotion, compensation
and performance evaluation data of any public employee over which the government body has
jurisdiction or exercises responsibility and parent F, considering financial, medical,
social or personal histories or disciplinary data of specific persons, preliminary consideration,
a specific personal problems or the investigation of charges against specific persons except
where paragraph little B applies.
If discussed in public would be likely to have a substantial adverse effect upon the
reputation of any person referred to in any such histories or data or involved in any
such problems or investigations, the council will meet in closed session to discuss and
consider actions regarding the investigation involving the chief of police, Jay Johnson
and to discuss options for the city to proceed.
I brought this item.
Is there a motion to go into closed session for those reasons?
And motion to return to closed session.
Motion to return to closed session by other person, Driswiki, is there a second by other
person Bailey, would you please call the roll?
Elder person, Joozwiki?
Aye.
Elder person Bailey?
Aye.
Elder person, Kastner?
Aye.
Elder person, Zarian?
Aye.