Tuesday, June 30, 2015

BUZZ TO MEDIA: Games Stoughton Plays

6-29-15 email from Buzz Davis to Selected Dane Co. Reporters
  
Dear Media Representatives!
 
Below is an example of the "games" Stoughton city staff are playing with the simple question of:  What is the effective date of the more recent KPW Developer's Agreement.
 
Simply put - the attached DA shows one date of June 9, 2015 and others dates that show June 18, 2015.
 
Under state law individuals or groups have 30 days from the time the contract is "signed" to file a lawsuit in court.
 
Thus Stoughton Forward which is considering a court suit has 30 days which end like July 9th or maybe July 18th.
 
At the June 23rd council meeting the DA was to come up for reconsideration.  The city kept secret from the alders that the mayor had already signed the DA.  I believe all or most of the alders found out on June 23rd that the mayor had already signed the DA and many were stunned.
 
In early 2014 when the previous DA was passed by the council and the meeting concluded at 12:30 or so at night, Alder Majewski told the alders and city attorney that he was going to move reconsideration of the passage of the DA at the next meeting (two weeks later.)
 
The mayor then signed the DA that night between 12 and 2AM, after I believe, consulting with the city attorney on how to circumvent that alder's intentions.
 
The ruling was, at the next council meeting, that Alder Majewski's motion to reconsider was out of order.
 
Yet this time, because the DA was passed June 9th with an amendment that $.5 million in construction contingency fund could NOT be spent before the construction started, and because the mayor wanted to say that the DA was signed but wanted to delete that amendment, she ruled June 23rd that the motion for reconsideration was valid but only dealt with the amendment not the DA because the DA had been signed.
 
If you follow this congratulations.  If you don't follow it you are like 99.9% of the public and maybe alders who say, "Huh, what just happened??"
 
As you may or may not know the DA passed by the council on June 9th had one other "minor" change.
 
WalMart had demanded that if the KPW development company goes belly up that WalMart wants the city to use the $5 million in TIF money to still pay for all the public improvements for the proposed SuperCenter or give the TIF money to WalMart and WalMart will then do the required construction.
 
On June 9 the council voted for this on a 6-6 split vote with the mayor then voting yes.
 
Some of us feel that such a major change to the TIF project is illegal under state law. 
 
Secondly, the "but for" clause required for TIF funding of a developer just might be a hard clause to prove if the recipient of the TIF money is WalMart - the largest and richest corporation in the world.
 
Buzz Davis, Treas. Stoughton Forward

Report: Walmart State and Local Tax Avoidance Exceeds $400 Million Annually

(click on image)

Wisconsin FOIA Request

Wisconsin FOIA Request
From:  Leslie W. Davis III - 6/29/15 
To:  Lana Kropf, City Clerk


Dear Clerk Kropf:


Under the Wisconsin Open Records Law, §19.31 et seq., I am requesting an opportunity to inspect or obtain copies of public records that provide the exact date the city attorney concludes that the Amended and Restated Developer's Agreement with KPW LLC/FDG, passed by the city council June 9, 2015, was effective.
The question asked in the emails below was a simple one and I ask for the city attorney's conclusion as to the effective date.  I have explained below that the DA you sent has a number of different dates.

If there are any fees for searching or copying these records, please inform me if the cost will exceed $1.  However, I would also like to request a waiver of all fees in that the disclosure of the requested information is in the public interest and will contribute significantly to the public’s understanding of the Kettle Park West project.  This information is not being sought for commercial purposes.


I request a response in writing, within the 5 days described by law, if you intend to deny this request.  Also, if you expect a significant delay in fulfilling this request, please contact me with information about when I might expect copies or the ability to inspect the requested records.


If you deny any or all of this request, please cite each specific exemption you feel justifies the refusal to release the information and notify me of the appeal procedures available to me under the law.
Thank you for considering my request.


Sincerely, Leslie W. Davis III, Treasurer

Dear Mr. Davis - Open records are now closed

In a message dated 6/29/2015 1:59:51 P.M. Central Daylight Time, dolson@ci.stoughton.wi.uswrites:
Good Afternoon Mr Davis,
You have received a signed copy of the Second Amended and Restated Agreement to Undertake Development. Neither Clerk Kropf nor I are able to provide you with the legal information you have requested.
Under the continued threat of law suit, neither I nor city staff will be able to continue to field such questions or dialogue regarding the Kettle Park West Development. 
Mayor Donna Olson

Dear Lana: June 24th, June 27th

Hello Lana!
Would you please take time to answer this question on Monday?  The information is critical to our law suit and it appears to me that the city is stalling in answering a simple question.
Thank you!
Buzz Davis, Treas., Stoughton Forward, 608-239-5354 cell#

From: DBuzzdavis@aol.com
To: LKropf@ci.stoughton.wi.us
CC: bill.livick@wcinet.comdennisglaw@gmail.com
Sent: 6/24/2015 6:16:31 P.M. Central Daylight Time
Subj: What is the effect date of the DA?

To:  Stoughton City Clerk Lana Kropf
Fr:  Buzz Davis, Treas., Stoughton Forward, 608-239-5354
Under state law, a case must be filed within a certain number of days after a contract is signed and has become effective.
What is the legal effect date of the Second Amended and Restated Agreement to Undertake Development?  (your document is attached)
On the first page of the attached DA it says that the agreement was entered into June 9, 2015.
On page 20 it says the mayor and clerk signed the document.  The date on the saved copy of the DA in your computer system says that the file was saved on June 16, 2015.  Were the two signatures signed that day June 16th.
On page 21 it says that the financial director signed it on June 18, 2015.
On page 27 it says the mayor and clerk signed that document on June 18, 2015.
On page 33 it says the mayor and clerk signed that document on June 18, 2015.
Therefore I ask what is the legal date that this DA was effective?  June 9, 2015 or June 18, 2015 or some other date.
Thank you!
Buzz Davis

A Different TIF Process


Below is a TIF process that is a far different process than that used in Stoughton.  Stoughton's negotiations seem to be done in secret.
We have tried and tried to get the council to review other TIF policies and formats for doing TIF developments.  The city under Adler Lawrence has refused to do what the council directed years ago.  Now 5 years after the KPW fiasco the city is slowly moving to review and modify it's policy.  And it should be noted the city does NOT even follow the policy it now has.  And the policy it now has is only for re-development not building on farmland.
The TIF requirements SHOULD be an ordinance NOT a policy and go through a public hearing process.  The city powers (mayor and pro-growthers) want a policy so it gets no review and can easily be pushed aside by any council on a given evening.
This is poor government.

~~~~~~~~~~~~

From:     Thomas J. Mertz <tjmertz@sbcglobal.net>
To:          Discuss PD <pddiscuss@prodane.org>
Sent:      Sunday, June 28, 2015 9:20 AM
Subject: City, JDS Development negotiators produce basic terms of a deal for Judge Doyle Square

Financial terms include:

A private investment by JDS of at least $130 million. City funding to replace Government East parking of $19.2 million and city capital funding for the bike center of $1 million. City investment of $42.5 million in other elements of the project. That includes a $12 million grant to Exact Sciences to create and retain 400 jobs at the site for at least 12 years, a $20.8 million loan for private parking and a $ 9.7 million loan for the fair market value of the land acquired for the private development.

 The negotiating team also requests eight specific exceptions from city TIF loan underwriting policies and seven exceptions from TIF goals, objectives and process. The report also highlights areas still to be resolved, largely in the area of guarantees

Read more:


(click on the image)

Thomas J. Mertz
Department of History
Edgewood College
tjmertz@sbcglobal.net

Friday, June 26, 2015

Law Suit Against the City

IT'S YOUR TIME TO FIGHT BACK AGAINST CORPORATE WELFARE!
Hello Stoughton Citizens!

LAW SUIT AGAINST CITY.
We believe that the City of Stoughton is NOT following the State of WI Tax Incremental Financing (TIF) law.  Stoughton Forward is now collecting donations to enable us to file a law suit against the city in Dane County Court.  It must be filed within a few weeks.
In order to file, we must raise $5,000 or more to prepare the suit and file it.  If the city, the developer and or WalMart decide to fight the suit it will cost another $5,000 or more.
At this point, we are asking for donations to help us raise the first $5,000.  We currently have over $2,700 in cash and pledges.  Thus we have about $2,300 more to go to be able to give our attorney the go ahead to prepare the suit. 
We must give that go ahead in the next few days.
He will send me a brief outline tomorrow or Saturday and I will forward it to you all along with an update on fund raising.
TIF LAWS.
In summary the city has now agreed to give WalMart $5 million, and possibly more, to reimburse WalMart for constructing the public infra-structure needed for the Kettle Park West mall if KPW LLC goes bankrupt.
This is a significant change to the project plan and the Developer's Agreement.  On behalf of Stoughton Forward I sent our attorney Dennis Grzezinski's letter to the mayor and council on 6-23-15.  That letter is below and  outlines what we believe to be potential law violations.  I have highlighted some sections.
The council and mayor paid no attention to the letter or what I said at the public comment period -- nothing new there!
PLEASE DONATE!!  If you can, please send a donation for any amount.  We are grateful for all donations.  You all have donated $10,000 or so in the last 1.5 years to fight back against our city.  Our mayor and half the council refuse to listen to citizens.  They push ahead with corporate welfare payments using our tax dollars against the will of 60% of the voters..
Checks Should Be Made Out To:  Stoughton Forward
Please Send To:
Stoughton Forward %
Buzz Davis, Treasurer
1021 Riverview Dr.
Stoughton, WI 53589
You may also drop the check or cash in our mail box on the porch.  If you choose to donate cash please also included you name, address, phone and email for our records.                
If you decide to donate, please email me back now and let me know about how much it might be.  We have to move fast and I may give the approval to our attorney to start work before I actually receive the checks in the mail.
Lastly, please consider forward this email to your email friends with a note on your views of what is happening and how small or large contributions will be appreciated.
WalMart is about the largest corporation is the world, is a tax cheat, receives billions of dollars in government subsidies, pays very low wages, has goods made in sweat shops in  China and other countries, its stores kill local downtowns, for every one new WM worker the local retail area loses 1 to 1.4 present better paying retail jobs and on and on.
It is abhorrent that the mayor of a city that does not have enough money to repair its roads, would work for years over the objections of the majority of the community to give corporate welfare to a developer and now WalMart.
Just how dumb can we get?  Take action now.  Donate a buck or more to help stop this foolishness in court.  Our city must follow the law.  It is regretful that citizens must take action and spend their own hard earned money to force their city hall staff and mayor and alders to follow the law.

Thursday, June 25, 2015

Here Are All the Reasons Walmart’s Business Is Not Sustainable


Was the DA signed?

From:    BUZZ - 6/17 - 10:59 a.m.
To:         Rodney J. Scheel
Subject: May I get a copy of the bid summary sheet for the 2nd rebid

Hi Rodney!

Would you please send me a copy of the KPW bid summary sheet if the bids have already been opened?

If the mayor signed the amended DA, would you please send me a copy of that final also.

~~~~~~SCHEEL RESPONSE~~~~~~
From: rjscheel@ci.stoughton.wi.us - 6/17 - 3:20 p.m.

Buzz,
Bids have not been received.  The bid date was moved from Thursday, June 18th to Thursday, June 25th at 2:00 as part of Addendum #3 that was issued today.
I do not have a copy of the signed Development Agreement.  I will forward your request to City Clerk Lana Kropf.

Rodney Scheel

~~~~~~BUZZ TO CLERK KROPF~~~~~~
From:     BUZZ - 6/19 - 7:26 a.m.
To:          Lana Kropf
Subject: May I get a copy of the bid summary sheet for the 2nd rebid
Hi Lana!
1.  Has the mayor signed the Developer's Agreement with KPW after the council's action at it last meeting?  If so, would you pls. send me a copy of the signed DA?
2.  Is the DA going to be on the agenda

~~~~~~KROPF RESPONSE~~~~~~
To:        DBuzzdavis@aol.com
Subj:     May I get a copy of the bid summary sheet for the 2nd rebid
Mr. Davis,
The Developer’s Agreement has not been signed by all parties yet. I have attached a copy of the agenda for you to review.
Thank you.
Lana C Kropf

~~~~~~BUZZ TO OLSON~~~~~~From:     BUZZ - 6/23 - 10:23 p.m.
To:          Donna Olson; Tim Swadley; Sonny Swangstu; Paul Lawrence; Ron Christianson; Michael Engelberger; Greg Jenson; Tricia Suess; Eric Hohol; Tom Selsor; Thomas Majewski; Pat O' Connor; Sid Boersma
Cc:          bill.livick@wcinet.com; dennisglaw@gmail.com
Subject:  Signing of the Developer's Agreement

Dear Mayor and Council:

I ask two simple questions and I would like response.

1.  Mayor, on what date and time did you sign the amended Developer's Agreement and on what dates did all the other parties sign the agreement and did you inform any alders that the DA had been signed?.  I would like an electronic copy of the signed agreement please.

2.  Alders approximately when did you know that the DA was signed by the mayor?

When I re-read my emails to staff, I find that I have been asking since June 17th which is 7 days ago.  For 7 days no staff could give a simple yes or no answer as to whether the DA had been signed.

As you and the city attorney know the time limit to file a court suit is 30 days from signing.  A cynical person would say the city is trying to run out the clock.


~~~~~~OLSON RESPONSE~~~~~~
6/24/2015 - 3:51p.m.
dolson@ci.stoughton.wi.us writes:
Lana has sent a signed copy of the developer’s agreement to Mr Davis today.
Donna


~~~~~~BUZZ TO OLSON~~~~~~
From:    BUZZ - 6/24 - 4:50 p.m. 
To:         Donna Olson; Tim Swadley; Sonny Swangstu; Paul Lawrence; Ron Christianson; Michael Engelberger; Greg Jenson; Tricia Suess; Eric Hohol; Tom Selsor; Thomas Majewski; Pat O' Connor; Sid Boersma
Cc:         bill.livick@wcinet.com; dennisglaw@gmail.com
Subject: Signing of the Developer's Agreement

Mayor Olson, I ask again did you formally inform the council that you had signed the DA and when did you do that.

Pls. answer the question and stop the avoidance.

~~~~~~OLSON RESPONSE~~~~~~
6/25/2015 - 9:28 a.m.
dolson@ci.stoughton.wi.us writes:
Good Morning,
I did not formally inform the Council that I had signed the developer’s agreement. Contracts are signed after Council action and approval. It is not past, nor current practice to inform Council of contract signing.  Contracts are signed after Council approval.

Donna

~~~~~~BUZZ TO OLSON~~~~~~
Subj:   Questions Regarding Discussion of Signed DA with Alders Prior to 6-23-15 Meeting

Thank you for your response Mayor Olson!

You state you did NOT formally inform the council that you had signed the Amended Developer's Agreement after it was approved at the 6-9-15 council meeting.

1.  Did you inform any of the alders of your signing of the DA prior to the 6-23-15 meeting.  If so how many were informed and who?

2.  If you informed any alders, why did you inform those alders and not all the alders?

3.  If you informed any alders, did you discuss with any of these alders prior to the 6-23-15 meeting how you and the attorney were going to handle Alder Jenson's request for reconsideration?

Thank you!
Buzz Davis, Treas., Stoughton Forward, 608-239-5354

Wednesday, June 24, 2015

Failed land deal puts woman, 87, in tax bind



BUZZ TO OLSON: Is Walmart's non-profit foundation making donations to the City of Stoughton?

From: DBuzzdavis@aol.com
To: dolson@ci.stoughton.wi.us
CC: tswadley@ci.stoughton.wi.usSSwangstu@ci.stoughton.wi.usPLawrence@ci.stoughton.wi.usRChristianson@ci.stoughton.wi.usmengelberger@ci.stoughton.wi.us,Gjenson@ci.stoughton.wi.ustsuess@ci.stoughton.wi.usehohol@ci.stoughton.wi.ustselsor@ci.stoughton.wi.usTMajewski@ci.stoughton.wi.uspoconnor@ci.stoughton.wi.us,sboersma@ci.stoughton.wi.usbill.livick@wcinet.comstoughtoneditor@wcinet.com
Sent: 6/24/2015 10:42:30 A.M. Central Daylight Time

Subj: Has the SFDept or other city departments received Donations from WalMart?
To:  Mayor Olson
Fr:  Buzz Davis, Treas., Stoughton Forward, 239-5354
I have recently heard rumors that the Stoughton Fire Department has received donations from the WalMart foundation.
Would you please confirm or deny and if confirmed explain the donation when and the amount.
Have any other departments received donations from WM and if so pls. explain.

Thank you!

~~~~~~MAYOR OLSON'S RESPONSE~~~~~~

Sent: 6/24/2015 3:12:38 P.M. Central Daylight Time

Good Afternoon,



I have confirmed with Chief Wegner that the Fire Department has not recently received donations from the WalMart foundation. It is however, common for WalMart to donate water for the Fire, EMS and Police departments during emergency situations. 
I have asked our Finance Department to identify donations from the WalMart foundation within the last 5 years. They are as follows:
9-15-14         $1,000          Safety Camp
9-8-14           $1,000          Arts Council
4-1-13           $1,000          Safety Camp
8-16-12         $2,500          K-9 Donations
11-17-11       $1,400          Food Pantry
10-21-11       $2,000          Safety Camp
Total Donations $8,900
Please let me know if you need any additional information.
Donna

Donating $5 million to Walmart? Take Action!

Dear Stoughton Citizens!
Please keep up if you can!  Before you read or skim this you may wish to get a cup of coffee and an aspirin -  because if you're not angry with our city, you have not been paying attention.
The questions before you are:
1.  Just how much do you wish to be taken for a sucker?
Does $5 million sound good?  Does $7 million plus interest sound better?
2.  How can you fight back to save our city and your community?
Regarding question #2 my next email will talk about that.  But first please learn about the situation we face.
   
We have crumbling roads in the city, the schools have no personal computers for all kids and NOW the mayor of Stoughton has got the "go along" council to approve giving WalMart $5 million plus in TIF money to build the public improvement (roads and utilities) if the KPW LLC goes belly up.  You will give the richest corporation in the world 5 million bucks.
On June 2nd, WalMart told the city lawyer (who is the city lawyer by title but seems to work for the mayor who seems to work for the developer and WalMart) that without an agreement that the city would give WalMart the TIF money, WalMart would pull out of the KPW mall deal.
By June 9th the "city" attorney, I use that term loosely,  took it upon himself to draft a new Developer's Agreement.  The council did not instruct him to do so.  But at that meeting the mayor placed the new DA on the agenda for action (no review by finance comm., no public hearing), "just approve it boys and girls."  And they did.
Did you know that?
If you said no, you are not alone.
The mayor signed the new DA.  The city council and the public were not even told by the mayor that she had signed the amended DA.  Some alders and myself only found out the DA had been signed at the meeting last night 6-23-15.
Ah, SECRECY pays (for them) & keeps YOU in the dark and keeps you forever behind on knowing what to do and how to fight back!
Last night the mayor announced only under questioning that she had signed the amended Developer's Agreement passed on June 9th yet the issue was on the council agenda June 23 for reconsideration.
When the council approved the second DA in early 2014, Alder Majewski said he was going to move reconsideration at the next meeting.  Olson signed the DA in the middle of the night.   Then at the next meeting the "city" attorney advised that Majewski could not move reconsideration because the Mayor has signed the DA which is considered a contract.
Ah, but this time, June 9, 2015, the mayor again signed the DA (when we have not been told yet).
But because she wanted to knock out the Swadley amendment approved by the council to NOT spend $.5 million in contingency funds until after the construction work had proceeded --- the "city" attorney finagled, along with Alder Hohol leading the charge, a way to knock that amend out.
Thus KPW LLC can now be given $.5 million more even before the construction starts because their delay after delay and mess ups have caused the bids to come in high.  The council will not formally approve this taxpayer give away of $.5 million until its meeting in July.
Result:  Once construction starts if there are any change orders due to unforeseen circumstances there will be no money to pay for them.  KPW LLC runs on a shoestring.  The lead developer Stienkraus owes $1.6 million personally to the Bank of Horicon and has made no payments.  This is all a dumb house of cards ready to fall at any minute.
Construction bids will be opened this Thurs.  They hope they are lower than the $1 million and $1.5 million over bids the first time.  The mayor and others have convinced the utilities to "give" hundreds of thousands of dollars of needed sand to KPW LLC in return for them doing some work on the new utilities unit to serve KPW.  Such a deal, huh!  Nobody got bids on how much this gift is worth.  It was just done.
Are you sick yet?  Has all the detail of reality put you to sleep?  This seems like Chicago politics to me. (See articles in other posts.)
All this KPW stuff will now be moving fast than even before. 
WalMart is a rogue corporation and our city and city council is in bed with them.  The six alders who have fought against this week after week are amazing!
Rogue corporation means they try to operate above the law by skirting the law with many high priced lawyers advising them.  Result is you, as a citizen, get taken.  

For your information, read the articles on the Walmart and TIF pages.

City of Madison $9 million loan to [Madison] school - Repayment through TIF district surplus





City may provide $9 million loan to school district with repayment through TIF district surplus


The Walmart Web: How the World’s Biggest Corporation Secretly Uses Tax Havens to Dodge Taxes

The Walmart Web: How the World’s Biggest Corporation Secretly Uses Tax Havens to Dodge Taxes

Forward Development Group/Steinkraus Letter - June 23, 2015


Standing KPW Tax Incremental Guarantee Letter of Credit - June 18, 2015


SECOND AMENDED AND RESTATED AGREEMENT TO UNDERTAKE DEVELOPMENT


Walmart Accused of Using Charity to Sway Cities Where It Wants to Expand




Tuesday, June 23, 2015

To File or Not to File

Hello Stoton Forward Email List Members!

Many of us found out that the amended Developer's Agreement was signed possibly the night of the June 9th.  We have 30 days to file a court suit on or before July 9th plus or minus a day depending upon how days are counted.  (Below is the email I sent to determine the starting date for the 30 days.)

As you know, Dennis worked on the letter I sent the council and you late today.  The council, mayor and city attorney paid no attention to it as usual.

We now must make a fast decision as to whether we should file a court suit based upon the concepts in Dennis letter and what ever else he comes up with.

I move that Stoughton Forward quickly tries to raise funds for filing a law suit.

I propose this:

STEP 1:  As many of you as possible respond by early tomorrow as to whether you think SF should file a suit.  Don't be concerned at this point that we do not have the $5,000 or so needed to file the suit.  The question is do you think we should file?

STEP 2:  If a number of your think we should file, our lists of people whether they are willing to commit to a pledge of funding and how much they pledge?

STEP 3:   Tally the pledges plus the $2,016 we have in the SFwd. account and see how close we get to $5,000.  Then decide to go or no go with the suit.

All this will have to be done extremely fast.

We can not wait until a week before the deadline and then ask our attorney Dennis Grzezinski to draft and file the law suit.

We should also try to raise money on line from persons and groups outside of Stoughton.

I would like to start the fundraising tomorrow afternoon - Wed. June 24th - if people think we should move forward.

So please try to respond quickly.

My guess, after reading my emails below and their responses, is that they wanted to keep secret when the DA was signed or whether the DA was signed.

At tonight's meeting they pushed thru a contorted way of reconsidering Swadley's amendment regarding not spending the $.5 million in contingency funding until after the project was well underway.  The amendment was reconsidered and I could not hear what they were doing.  A friend at the meeting said they voted Swadley's amendment down.

They then formally tabled approving spending all or most or sum of the $.5 million in contingency funds until the July 14th council meeting.  Note the construction bids are due to be opened at 2 PM in city hall this Thursday unless they rebid for the 4th time.

The council meeting make me think of being locked in a mental institution with a committee of patients running the place based on most unusual rationales for action.

We have 6 alders who try to fight back with reason but it does little good against 6 alders. a mayor and a city attorney who seems to be the mayor's personal attorney and who seems to work for KPW and WalMart all at the same time.  He certainly does not think he works for the council or citizens.

If you watched the meeting on TV please tell my that I was just dreaming.

Thanks much!
Buzz Davis, 239-5354 (pls. call if you have questions and you wish to talk)
dbuzzdavis@aol.com

Please respond to everyone as a BCC if you can.

From the Law Office of Dennis M. Grzezinski

Dear Mayor Olson, President Lawrence and Stoughton Common Council Members: 
Ms. Olson and Mr. Lawrence please review the below email with the city attorney.


On behalf of Stoughton Forward, we urge the city to follow the pertinent portions of the WI TIF law if the city chooses to significantly modify the present Developer's Agreement with Kettle Park West LLC.

If you are unsure of the proper actions to take, it would be best to table tonight's agenda items that relate to the Kettle Park West Developer's Agreement until the city has had these matters reviewed by appropriate TIF experts for legality.
Thank you!
Buzz Davis, Treas., Stoughton Forward
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

From: dennisglaw@gmail.com
To: DBuzzdavis@aol.com
Sent: 6/23/2015 3:46:03 P.M. Central Daylight Time
Subj: Re: Proposed changes to the Development Agreement for the Kettle Park West TIF District Project
to:  Buzz Davis, Stoughton Forward.

Mr. Davis:  You have requested me to review proposed actions by the Common Council of the City of Stoughton relating to the Kettle Park West development in light of the requirements of the Wisconsin statutes regarding TIF districts, Section 66.1105, Wis. Stats.  

Section 66.1105(4)(f) governs the creation of Tax incremental districts and project plans.  Essential elements of the project plan, as itemized in Sections 66.1105(4)(e) and (f), include a detailed list of estimated project costs; identifying whether cash grants may be made by the city to owners, lessees, or developers of land within the TIF district; and the time when the costs or monetary obligations in the plan are to be incurred.  The plan must be complete and available to the public when the official notice of the public hearing on the proposed project plan or TIF district is published.

Section 66.1105(4)(h) authorizes the planning commission to adopt an amendment to a project plan, subject to approval by the common council, and to review by the joint review board.  The statute further provides:  "Adoption of an amendment to a project plan shall be preceded by a public hearing held by the plan commission at which interested parties shall be afforded a reasonable opportunity to express their views on the amendment."  Publication of an official notice of the hearing is required.

City officials have proposed and/or approved amendments to the Development Agreement regarding the Kettle Park West TIF development which significantly increase the estimated cost of the improvements to be financed by the City, which have added Wal-Mart as a party to which cash grants of approximately $5 million may be made by the City, and which delay the time period in which the costs or monetary obligations of the City are to be incurred.  Approval of such changes to the Development Agreement presuppose making similar changes to the project plan and to the TIF district itself.  However, there has been no notice published for a public hearing before the planning commission regarding such changes to the plan or district, no action on such amendments by the planning commission, the common council, or the joint review board.   

Under these circumstances, contractually committing the city to the developer and Wal-Mart as proposed seems to put the cart before the horse.  It in effect, obligates the planning commission and the common council, in advance of the legally required public hearing on project plan and TIF district amendments, to officially approve the various proposed amendments.  

This completely skirts the public notice and public meeting requirements of Sections 66.1105(f) and (h), and could likely subject the City's actions in approving such changes to serious legal challenge and uncertainty as to their validity.  The law is clear regarding how a city may make significant changes relating to TIF projects and TIF districts, and Stoughton Forward should urge members of the Common Council to follow the procedures set forth in the TIF law if they believe that amendments are needed.

Very truly yours,


/s/Dennis

Dennis M Grzezinski
Law Office of Dennis M Grzezinski1845 N. Farwell Avenue, Suite 202
Milwaukee, WI 53202
Phone: (414) 455-0739 MOBILE 414 530-9200
Fax: (414) 455-0744dennisglaw@gmail.com