amended community development authority parker bluff … · staff present: julie christensen,...

Community Development AuthorityMeeting Agenda - October 23, 2019

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AMENDEDPUBLIC NOTICE & AGENDA

COMMUNITY DEVELOPMENT AUTHORITYParker Bluff - 220 Portland Avenue, Beloit, WI 53511

4:30 PMWednesday, October 23, 2019

1. CALL TO ORDER AND ROLL CALL

2. PUBLIC COMMENT

3. MINUTES3.a. Consideration of the minutes of the September 25, 2019 Community Development Authority

regular meeting and the October 9, 2019 special meetingAttachment

4. BELOIT HOUSING AUTHORITY

4.a. Presentation of the September Activity Report (Cole)Attachment

4.b. Presentation of the August Financial Report (Cole)Attachment

4.c. Review and consideration of Resolution 2019-27, Authorizing the Beloit Housing Authority toapply for a Family Self-Sufficiency (FSS) Program Grant (Cole)Attachment

4.d. Review and Consideration of Resolution 2019-28, Approving Revision to Beloit HousingAuthority's Capitalization PolicyAttachment

5. COMMUNITY DEVELOPMENT5.a. Consideration of a Lease Agreement among the Community Development Authority and

William T Mansfield, Jr. Revocable Trust and Hendricks Commercial Properties, LLC andconsideration of an Access Easement Agreement and acquisition and sale of minor parcels ofland located on or near the Broad Street Parking Lot (Christensen)Attachment

6. ADJOURNMENT

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https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/456240/Combined_September_25_and_October_9_CDA_Minutes.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/454329/4a-September_2019_Activity_Report.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/454373/September_2019_Financial_Report.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/453811/4c-2019_FSS_Coordinator_Grant_Application.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/453813/4d-Capitalization_Policy_Revision_Combined.pdf

https://legistarweb-production.s3.amazonaws.com/uploads/attachment/pdf/459082/5a-Mansfield_Lease__Access_Easement___Quit_Claim_Deeds_-_Final.pdf

Beloit Community Development AuthorityMeeting Agenda - October 23, 2019

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** Please note that, upon reasonable notice, at least 24 hours in advance, efforts will be made to accommodate theneeds of disabled individuals through appropriate aids and services. For additional information to request this service,please contact the City Clerk's Office at 364-6680, 100 State Street, Beloit, WI 53511.

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Minutes Beloit Community Development Authority Parker Bluff – 220 Portland Avenue, Beloit, WI 53511 September 25, 2019 4:30 P.M. The regular meeting of the City of Beloit Community Development Authority was held on Wednesday, September 25, 2019 in the Community Room of Parker Bluff Apartments, 220 Portland Avenue. 1. Call to Order and Roll Call

Meeting was called to order by Commissioner Baker at 4:30 PM. Present: Commissioners Baker, Ellison, Kenitzer, Leavy and Murray Absent: Councilor Forbeck Staff Present: Julie Christensen, Clinton Cole, Teri Downing and Ann Purifoy

2. Public Comment Christina Patterson, a public housing tenant, graduated from the FSS (Family Self-Sufficiency) Program recently and purchased a City tax foreclosure through ACTS Housing. She expressed her thanks to Jeff Hoyt and the FSS Program for the opportunity to acquire the tools and resources to make homeownership possible. Christina stated that she and her family will always be grateful.

3. Consideration of the August 28, 2019 Community Development Authority Regular Meeting A motion was made by Commissioner Leavy and seconded by Commissioner Ellison to approve the minutes of the August 28, 2019 Community Development Authority regular meeting. Motion carried unanimously.

4. Community and Housing Services a. Consideration of Resolution 2019-23 Recommending Approval of the 2020 Community

Development Block Grant (CDBG) budget, 2020-2024 Consolidated Plan, 2020 Annual Plan and 2020-2024 Neighborhood Revitalization Strategy Area (NRSA) Teri Downing, Community and Housing Services Director, presented the staff report and recommendation. Commissioner Kenitzer requested data comparing the amount received by public service agencies in 2019 to the amount recommended for 2020. Teri supplied the requested information and stated that this was omitted from the 2020 CDA Budget spreadsheet due to a new person preparing the budget, but it will be included in the future.

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Councilor Leavy asked that monitoring findings be distributed to the Board before budget approval so the Board members can make more informed decisions regarding staff recommendations. Commissioner Leavy moved and Commissioner Baker seconded a motion to approve Resolution 2019-23. Motion carried unanimously.

b. Consideration of Resolution 2019-24 Recommending Approval of the 2020 Home Investment Partnerships Program (HOME) budget Julie Christensen, Community Development Director, presented the staff report and recommendation. Commissioner Ellison moved and Commissioner Murray seconded a motion to approve Resolution 2019-24. Motion carried unanimously.

5. Beloit Housing Authority: a. Presentation of the August Activity Report

Clinton Cole, Beloit Housing Authority Director, gave a brief summary of the report.

b. Presentation of the July Financial Report Clinton Cole, Beloit Housing Authority Director, gave a brief summary of the report. Low Income Public Housing (LIPH) continues to operate at a deficit. The sale of our Project-based units on Elm Street put us in a positive balance but we cannot continue to run at a deficit by taking funds from reserves. We do have options, which will be examined at a future Special Meeting, which involve a shift in funding in order to balance the budget.

c. Public Hearing and Consideration of Resolution 2019-20 Approving the Beloit Housing Authority’s Annual and Five-Year PHA Plans Clinton Cole presented the staff report and recommendation. Chairman Baker opened the Public Hearing regarding approval of the 2020 Annual and Five-Year PHA Plans. The Public Hearing closed with no comments. Commissioner Ellison moved and Commissioner Leavy seconded a motion to approve Resolution 2019-20. Motion carried unanimously.

d. Review and Consideration of Resolution 2019-21, Authorizing the Beloit Housing Authority to apply for a Resident Opportunity & Self-Sufficiency Service Coordinator (ROSS-SC) Program grant Clinton Cole presented the staff report and recommendation. Clint stated that this grant money will have a positive effect on our budget.

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Commissioner Baker moved and Commissioner Murray seconded a motion to approve Resolution 2019-21. Motion carried unanimously.

e. The Community Development Authority will adjourn into closed session pursuant to §19.85(1)(e) Wis. Stats., for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session, in particular to discuss the potential sale of 1119 Portland Avenue. The Community Development Authority may reconvene and take action on an item discussed in closed session.

Commissioner Leavy moved and Commissioner Murray seconded a motion to adjourn into closed session at 6:01 p.m. Motion carried unanimously. Commissioner Leavy moved and Commissioner Murray seconded a motion to reconvene the Regular Meeting at 6:11 p.m. Motion carried unanimously. Commissioner Leavy moved and Commissioner Ellison seconded a motion to approve Resolution 2019-22. Motion carried unanimously

6. Adjournment Commissioner Leavy moved and Commissioner Murray seconded a motion to adjourn at 6:12 p.m. Motion carried unanimously. Respectfully submitted, Ann Purifoy

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Minutes Beloit Community Development Authority Parker Bluff - 220 Portland Avenue, Beloit, WI 53511 October 9, 2019 4:30 P.M. The special meeting of the City of Beloit Community Development Authority was held on Wednesday, October 9, 2019 in the Community Room of Parker Bluff Apartments, 220 Portland Avenue. 1. Call to Order and Roll Call:

Meeting was called to order by Commissioner Baker at 4:36 p.m. Present: Commissioners Baker, Ellison, Forbeck, Kenitzer, Leavy and Murray Absent: None Staff Present: Julie Christensen, Clinton Cole and Ann Purifoy

2. Public Comment

None

3. Housing Authority: a. Consideration of Resolution 2019-25 Approving the 2020 Beloit Housing Authority

Operating Budget Clinton Cole, Beloit Housing Authority Director, presented the staff report and recommendation. Clint explained the anticipated revenue line items of the 2020 Operating Budget. He explained that Gross Potential Rent is projected to be down almost $11K from last year due to project-based rental accounts being down. We do not receive capital funds for these units, only rental income. He indicated that we anticipate the Operating Subsidy to be down more than $15K. This will most likely continue to go down every year as HUD gets out of the public housing business. HUD is making a push for housing authorities to look for alternate funding for public housing. One option is a program called Rental Assistance Demonstration, or RAD, which seeks to preserve public housing by providing Public Housing Agencies (PHAs) with access to more stable funding to make needed improvements to properties. Commissioner Ellison moved and Commissioner Leavy seconded a motion to approve Resolution 2019-25. Motion carried unanimously.

b. The Community Development Authority will adjourn into closed session pursuant to

19.85(1)(e) Wis. Stats., for the purpose of deliberating or negotiating the purchasing of public properties, the investing of public funds, or conducting other specified public

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https://www.hud.gov/RAD

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business, whenever competitive or bargaining reasons require a closed session, in particular to discuss the potential sale of 756 Tenth Street. The Community Development Authority may reconvene and take action on an item discussed in closed session.

Commissioner Forbeck moved and Commissioner Murray seconded a motion to adjourn into closed session at 5:09 p.m. Motion carried unanimously. Commissioner Forbeck moved and Commissioner Ellison seconded a motion to reconvene the Special Meeting at 5:19 p.m. Motion carried unanimously. Commissioner Forbeck moved and Commissioner Ellison seconded a motion to approve Resolution 2019-26. Motion carried unanimously.

4. Adjournment:

Motion by Commissioner Baker and seconded by Commissioner Leavy to adjourn at 5:20 p.m. Motion carried. Respectfully submitted, Ann Purifoy

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REPORTS AND PRESENTATIONS TO COMMUNITY DEVELOPMENT AUTHORITY

Agenda Number:

4a

Topic: September 2019 Activity Report

Date: October 23, 2019

Presenter: Clinton Cole Division: Beloit Housing Authority

Overview/Background Information

Each month, the Housing Authority provides an activity report to the Community Development Authority. This report is for information only.

Key Issues

Public Housing: At the end of this reporting period there were four public housing vacancies. 20 applicants were pulled from the public housing waiting list; 10 applicants were briefed. 12 annual and seven interim certifications were completed. 24 public housing inspections were completed during this period. Section 8: 509 vouchers were housed on September 30, 2019, with 45 voucher holders either searching for units or waiting for passed inspections. 12 portable vouchers were paid by BHA, and seven port-in vouchers were administered. 61 Section 8 inspections were completed during this reporting period, and the Housing Specialists completed 57 annual and 49 interim recertifications. 21 new vouchers were issued during this period.

Conformance with Strategic Plan

Approval of this action would conform with the stated purpose of the following strategic goal:

Goal #1 – Create and Sustain Safe and Healthy Neighborhoods

Goal #2 – Create and Sustain a High Performing Organization

Goal #3 – Create and Sustain Economic and Residential Growth

Goal #4 – Create and Sustain a High Quality of Life

Goal #5 – Create and Sustain High Quality Infrastructure and Connectivity

Goal #6 – Create and Sustain a Positive Image, Enhance Communications and Engage the Community

Sustainability

(If applicable, briefly comment on the sustainable long term impact of this policy or program related to how it will impact both the built and natural environment. Consider whether the policy or program will reduce dependence upon fossil fuels, reduce dependence on chemicals and other manufacturing substances that accumulate in nature, reduce dependence on activities that harm life sustaining eco-systems, and/or meet the hierarchy of present and future human needs fairly and efficiently. Write N/A if not applicable)

N/A

Action Required/Recommendation

No action required. Information only.

Fiscal Note/Budget Impact

All fiscal/budget impacts are noted in the report.

Attachments

September 2019 Activity Report

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Beloit Community Development Authority

Activity Report to Board for September 2019

Public Housing

Vacancies – 9/30/2019

Total Public Housing Units 131 Units

97% Occupancy

Vacancies 1 Elderly - 98% Occupancy

3 Family - 97% Occupancy

Public Housing Inspections

24 inspections were completed during this reporting period. 20 were annual inspections and two

reinspections, there was one move-in inspection, and there was one housekeeping inspection.

Public Housing Activities

Annual Recerts: 12

Interim Recerts: 7

Notice to Vacate: 1

New Tenants: 0

Transfers: 0

Lease Terminations: 0

Possible Program Violations: 0

Evictions 0

Public Housing Briefings

Number Notified: 20

Number Briefed: 10

Section 8 Program

Total Section 8 Vouchers 598 Vouchers

September 30, 2019 509 under lease - 85% Utilization

12 Portable Vouchers paid –12 Not Absorbed by other PHAs

(Port Out)

7 Portable Vouchers administered (Port In)

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Section 8 Inspections

61 inspections were completed during this reporting period. 25 were annual inspections, 14 were

initial inspections, 20 were reinspections, and there were two special inspections.

Section 8 Activities

New Participants: 1

Annual Recerts: 57

Interim Recerts: 49

Abatements: 6

Unit transfers: 9

Possible Program

Violations: 3

End of Program 4

Port outs: 1

Section 8 Briefings

Number Notified: 0

Number Briefed: 21

APPLICATIONS:

Waiting List: 113 Public Housing East

108 Public Housing West

197 Parker Bluff

286 Sec. 8

0 Tenants removed for Repayment Default

0 Tenants removed for unreported income

0 Tenants removed for unauthorized occupants

0 Applicants removed for debts owed

Some applicants are on both lists, some are not

Section 8 waiting list opened 4/4/11

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Agenda Number:

4b

Topic: August 2019 Financial Report




Each month, the Housing Authority provides a financial report to the Community Development Authority. This report is for information only.

Key Issues

Attached is the Beloit Housing Authority Financial Statement prepared by the BHA Financial Assistant for the month ending August 31, 2019. Through the month of August, the Low Income Public Housing (LIPH) program income was $532,305.37 and the LIPH expenses were $562,726.19. There was a deficit of $(30,420.82) in LIPH. The Operating Reserve for LIPH at 2019 Period End is $5,256,260.18. Through the month of August, Inflows of revenue from LIPH Grants total $182,083.67 and related grant expenses total $182,083.67. Through the month of August, the Project Based Voucher (PBV) program income was $35,706.04 and the expenses were $33,283.66. The PBV had a surplus of $2,422.38. The PBV Operating Reserve at this Period End is $80,268.38. Through the month of August, Phase 1 and Phase 2 program income was $652,788.78 and the expenses were $573,741.30. Phase 1 and Phase 2 had a surplus of $79,047.48. The Operating Reserve for these programs at this Period End is $349,192.48. Through the month of August, the Housing Choice Voucher (HCV) program income was $2,240,672.22 and expenses were $2,163,488.11. The HCV program had a surplus of $28,170.41. The HCV Operating Reserve at this Period End is $324,360.41. Debts owed BHA collected to date in 2019: $22,314.25 TRIP Program: $12,580.06 Repayments: $3,945.46


Approval of this agreement would conform with the stated purpose of the following strategic goal:







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Sustainability

(If applicable, briefly comment on the sustainable long term impact of this policy or program related to how it will impact both the built and natural environment. Consider whether the policy of program will reduce dependence upon fossil fuels, reduce dependence on chemicals and other manufacturing substances that accumulate in nature, reduce dependence on activities that harm life sustaining eco-systems, and/or meet the hierarchy of present and future human needs fairly and efficiently. Write N/A if not applicable)

N/A


No action required. Information only.


All fiscal/budget impacts are noted in the report.

Attachments

N/A

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YTD Actual Annual Board Approved Budget

Income Approved YTD LIPH LIPH Grants PBV Phase 1 & 2 HCV Agency Total LIPH/LLC/PBV HCV Total1 Dwelling Rental 205,582.00 34,678.00 151,216.49 185,894.49 308,373.00 308,373.00

2 Excess Utilities - - -

3 Interest on Unrestricted Fund Investments 802.00 48.32 414.73 1,581.02 2,044.07 770.00 433.00 1,203.00

4 Income - Transfer In from Other Funds - 204,080.02 205,570.68 44.65 409,695.35 -

5 Other Income - Tenants 4,950.67 1,028.04 27,389.37 1,350.00 29,767.41 7,426.00 7,426.00

6 HAP Fraud Recovery & FSS Forfeitures - 7,825.30 7,825.30 -

7 Other Income - Bad Debt Collections - 13,698.76 13,698.76 -

8 Other Income - Laundry/Copy Fees/Misc 31,812.00 11,489.27 50,500.87 25,627.25 87,617.39 47,718.00 47,718.00

9 Other Income - CFP Operation Money 40,000.00 45,114.00 45,114.00 60,000.00 60,000.00

10 Other Income - Sale of Asset Gain/Loss - - -

11 Admin Fees Earned - HUD 210,342.00 203,077.00 203,077.00 315,513.00 315,513.00

12 Incoming Billable Admin Fees/Oper Sub 183,333.33 217,696.64 217,696.64 275,000.00 275,000.00

13 ROSS/CFP Grant - 182,083.67

14 HAP Subsidy 1,862,690.00 2,001,167.00 2,001,167.00 2,794,035.00 2,794,035.00

15 Operating Subsidy 268,382.00 257,875.00 257,875.00 402,573.00 402,573.00

Total Income 2,807,894.00 532,305.37 182,083.67 35,706.04 652,788.78 2,240,672.22 3,461,472.41 1,101,860.00 3,109,981.00 4,211,841.00

Expenses Approved YTD LIPH LIPH Grant PBV Phase 1 & 2 HCV Agency Total LIPH/LLC/PBV HCV TotalAdministrative Expenses

16 Admin Salaries 270,813.33 49,554.13 9,144.00 11,052.47 88,208.20 120,944.11 278,902.91 209,528.00 196,692.00 406,220.00

17 FSS Coordinator Admin Salaries - 10,623.91 10,623.91 -

18 Admin Employee Benefits 116,524.67 24,532.96 4,678.77 49,532.56 78,744.29 96,915.00 77,872.00 174,787.00

19 FSS Coordinator Admin Benefits - 3,981.98 3,981.98 -

20 Advertising & Marketing 1,533.33 52.52 52.52 1,300.00 1,000.00 2,300.00

21 Legal 2,333.33 1,263.45 1,263.45 3,250.00 250.00 3,500.00

22 Staff Training 3,333.33 9,392.49 9,392.49 2,500.00 2,500.00 5,000.00

23 Travel 333.33 41.69 41.69 250.00 250.00 500.00

24 Accounting Consultants 22,473.33 4,068.00 724.00 7,300.00 4,460.00 16,552.00 26,460.00 7,250.00 33,710.00

25 Audit Fee 25,333.33 6,432.50 21,765.00 6,432.50 34,630.00 29,000.00 9,000.00 38,000.00

26 Telephone 8,136.00 988.22 861.90 1,850.12 5,472.00 6,732.00 12,204.00

27 Postage 4,333.33 1,469.18 1,469.18 2,145.00 4,355.00 6,500.00

28 Office Supplies 3,666.67 922.74 1,060.09 1,982.83 3,420.00 2,080.00 5,500.00

29 Memberships & Publications 1,746.67 432.66 362.67 795.33 685.00 1,935.00 2,620.00

30 Bank Fees 2,133.33 58.81 1,871.01 1,929.82 - 3,200.00 3,200.00

31 Computer Maintenance - - -

32 Copier Expenses 4,000.00 1,722.45 1,722.44 3,444.89 2,815.00 3,185.00 6,000.00

33 Office Equipment Maintenance - - - - -

34 Postage Machine - 2,747.36 2,747.36 -

35 Software Maintenance 8,333.33 3,258.92 4,775.88 8,034.80 6,250.00 6,250.00 12,500.00

36 Outgoing Portable Admin Fees - - -

37 Sundry Administration/Compliance Fees 6,333.33 495.00 4,039.44 10,359.16 721.50 15,615.10 9,500.00 - 9,500.00

38 Management Improvements - - -

39 Management Fees 12,000.00 11,489.27 11,489.27 18,000.00 18,000.00

40 Eviction & Collection Agent Fees - 1,714.81 1,714.81 - - -

41 HAP Expense (net fraud recovery to HUD) - 1,960,023.25 1,960,023.25 - -

HAP Overfunding (Underfunding) - 49,013.70 -

Maintenance Expenses -

42 Maintenance Salaries 106,094.00 4,741.02 3,347.46 105,857.89 113,946.37 159,141.00 159,141.00

43 Casual Labor - Maintenance - - -

44 Maintenance Benefits 36,980.67 361.10 1,291.24 1,652.34 55,471.00 55,471.00

45 Maintenance Materials & Supplies 14,833.33 86.62 495.17 20,440.82 21,022.61 22,250.00 22,250.00

46 Plumbing Supplies - 27.48 27.48 -

47 Locks, Locksets & Keys - - -

48 Electrical Supplies - 74.99 5.00 79.99 -

49 Painting Supplies - - -

50 Cleaning Supplies - 503.91 503.91 -

Consolidated 2019 Budget Report for Beloit Housing Authority - August 2019

Consolidated Budget Report Aug. 2019 Page 1 of 2

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51 Equipment Repair Parts - - -

52 Maintenance Contracted Services 10,114.67 1,947.85 1,214.48 20,322.49 23,484.82 15,172.00 15,172.00

53 Refuse Removal Services 3,166.67 100.00 2,512.50 690.19 3,302.69 4,750.00 4,750.00

54 Plumbing Repair Services 1,000.00 1,135.32 1,135.32 1,500.00 1,500.00

55 Heating/AC Repair Services 2,133.33 3,776.88 3,776.88 3,200.00 3,200.00

56 Electric Repair Service 333.33 121.24 121.24 500.00 500.00

57 Window Repair Service 666.67 - 1,000.00 1,000.00

58 Automotive Repairs/Fuel 3,333.33 2,645.62 1,327.86 3,973.48 5,000.00 5,000.00

59 Elevator Repair & Maintenance 5,333.33 - 8,000.00 8,000.00

60 Pest Control Services 4,000.00 - 6,000.00 6,000.00

61 Cable TV - 1,283.16 1,283.16 -

62 Answering Service 1,466.67 1,281.27 1,281.27 2,200.00 2,200.00

63 Misc Contracts 2,000.00 - 3,000.00 3,000.00

64 Clean/Paint Units 533.33 - 800.00 800.00

Utilities Expenses -

65 Water/Sewer 14,966.67 865.92 1,257.37 5,004.08 7,127.37 22,450.00 22,450.00

66 Electricity 16,666.67 4,061.56 714.23 13,236.13 18,011.92 25,000.00 25,000.00

67 Natural Gas 7,666.67 1,154.28 1,285.44 4,387.31 6,827.03 11,500.00 11,500.00

Other Operating Expenses -

68 Protective Services Contract 30,266.67 22,812.94 976.00 23,788.94 45,400.00 45,400.00

69 Insurance 28,046.00 4,751.66 1,857.68 17,957.54 2,280.00 26,846.88 38,547.00 3,522.00 42,069.00

70 PILOT 17,241.33 185.59 13,033.23 13,218.82 25,862.00 25,862.00

71 Compensated Absences - - -

72 Collection Losses 7,333.33 8,790.75 8,790.75 11,000.00 11,000.00

73 Replacement Reserves & Debt Pmt-Princ - - -

74 Other General Expense/Asset Mgmt Fees 184,834.00 217,696.64 10,672.96 2,831.42 231,201.02 277,251.00 277,251.00

75 Casualty Losses - Non Capitalized - - - -

76 Capital Expenditures - 147,860.50 147,860.50 - -

77 Transfer In / Out - 205,615.33 1,080.79 203,665.29 414.73 410,776.14 -

Total Expense 992,371.33 562,726.19 182,083.67 33,283.66 573,741.30 2,163,488.11 3,515,322.93 1,162,484.00 326,073.00 1,488,557.00

LIPH LIPH Grant PBV Phase 1 & 2 HCV Agency Total Budget LIPH Budget HCV Budget Total

5,286,681.00 - 77,846.00 270,145.00 296,190.00 5,930,862.00 5,634,672.00 5,634,672.00

(30,420.82) 0 2,422.38 79,047.48 28,170.41 79,219.45 (60,624.00) 2,783,908.00 2,723,284.00

5,256,260.18 0 80,268.38 349,192.48 324,360.41 6,010,081.45 5,574,048.00 2,783,908.00 8,357,956.00

**LIPH Operating Reserve includes $5,380,074.02 of money unavailable due to tax credit revenue on paper only

(123,813.84) 0 80,268.38 349,192.48 324,360.41 630,007.43

SECTION 8 Funding Analysis

HAP

2,001,167.00

Fraud Recovery/FSS Forfeitures 7,825.30

Restricted Net Asset Interest Earned 44.65

1,960,023.25

49,013.70

25,600.00

74,613.70

ADMIN FEES

203,077.00

28,558.27

203,464.86

28,170.41

270,590.00

FSS Grant Shortage at end of Period for 2019 -

298,760.41

Admin Fee Reserve FYE 12/31/18

Admin Fee Reserve Balance at end of Period for 2019

Income from other funding sources

Administrative Expenses YTD

Under (Over) spending YTD

Under (Over) spending YTD

HAP Reserve FYE 12/31/18 *

HAP Reserve Balance at end of Period for 2019

Administrative Funding received from HUD YTD

Additional Notes:

HAP Funding received from HUD YTD

HAP Payments made YTD

Operating Reserve - FYE 12/31/18

Change in Operating Reserve FYE 12/31/18 (reserve/deficit)

Operating Reserve at end Period for 2019

Physical Operating Reserve at end of Period for 2019

Consolidated Budget Report Aug. 2019 Page 2 of 2

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BHA YTD

Actual

LIPH

Grants

Actual

LLC

Phase 1 & 2

Actual HCV YTD Actual YTD Budget

Variance

Over (Under)

Income

Dwelling Rent/Utilities 34,678.00 151,216.49 308,373.00 (122,478.51)

Interest on Investments 48.32 414.73 1,581.02 1,203.00 841.07

Other Income 230,296.09 501,157.56 27,021.90 115,144.00 643,331.55

HUD Admin Fees 203,077.00 315,513.00 (112,436.00)

HUD Grants/Subsidies 302,989.00 182,083.67 2,008,992.30 3,196,608.00 (702,543.03)

Total Income 568,011.41 182,083.67 652,788.78 2,240,672.22 3,936,841.00 (293,284.92)

Expenses

BHA YTD

Actual

LIPH

Grants

Actual

LLC

Phase 1 & 2

Actual HCV YTD Actual YTD Budget

Variance

Under (Over)

Administrative

Salaries/Benefits 89,818.33 23,749.89 88,208.20 170,476.67 581,007.00 208,753.91

Office Expenses 19,571.74 9,392.49 40,798.94 15,811.36 122,534.00 36,959.47

Office Contracted Services 4,981.37 11,650.68 18,500.00 1,867.95

Oper Sub Transfer/Mgmt Fee Pd 11,489.27 18,000.00 6,510.73

Housing Assistance Pmts 1,960,023.25 - (1,960,023.25)

Maintenance

Salaries/Benefits 9,740.82 105,857.89 214,612.00 99,013.29

Materials & Supplies 1,193.17 20,440.82 22,250.00 616.01

Maintenance Contracts 8,445.78 29,222.89 51,122.00 13,453.33

Utilities 9,338.80 22,627.52 58,950.00 26,983.68

Other Operating

Protective Services 22,812.94 976.00 45,400.00 21,611.06

Insurance 6,609.34 17,957.54 2,280.00 42,069.00 15,222.12

PILOT 185.59 13,033.23 25,862.00 12,643.18

Other Operating Expenses 423,311.97 148,941.29 223,129.00 3,246.15 288,251.00 (510,377.41)

Total Expenses 596,009.85 182,083.67 573,741.30 2,163,488.11 1,488,557.00 (2,026,765.93)

Net Admin Income (Loss) (27,998.44) - 79,047.48 28,215.06

Net HAP Income (Loss) 48,969.05

Total YTD Income (Loss) (27,998.44) - 79,047.48 77,184.11

Cash Flow Statement

Beloit Housing Authority

8/31/2019

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Agenda Number:

4c

Topic: Fiscal Year 2019 Beloit Housing Authority Family Self-Sufficiency Coordinator Grant Application




The Department of Housing and Urban Development (HUD) has made Fiscal Year 2019 Family Self-Sufficiency (FSS) Program Coordinator funding available. The Beloit Housing Authority (BHA) wishes to submit an application for continued program funding.

Key Issues

1. In September 2019 the Department of Housing and Urban Development (HUD) published a Notice of Funding Availability (NOFA) regarding funding for the Fiscal Year (FY) 2019 Family Self-Sufficiency (FSS) Coordinator program.

2. The Beloit Housing Authority (BHA) intends to prepare and submit a grant application in the amount of $72,000 to support a FSS Coordinator that works individually with individuals to assist them in meeting their identified goals and objectives.

3. The successful receipt of the FSS Coordinator funding will have a positive affect on BHA’s 2020 Consolidated Budget.









Sustainability


N/A


Staff recommends approval of the attached resolution.


If we do not apply for this grant, we may not have the funding to pay for the FSS staff position.

Attachments

Resolution 2019-27

16

RESOLUTION 2019-27

APPROVING THE BELOIT HOUSING AUTHORITY’S (BHA) 2019 FAMILY SELF-

SUFFICIENCY (FSS) COORDINATOR GRANT APPLICATION SUBMISSION

WHEREAS, the Department of Housing and Urban Development (HUD) has made funding available to provide a Family Self-Sufficiency (FSS) Coordinator in 2020;

WHEREAS, the Beloit Housing Authority (BHA) currently administers a FSS program, and

is required to continue administration of the program per HUD regulations; NOW, THEREFORE BE IT RESOLVED, that the Community Development Authority (CDA)

Board of Commissioners authorize BHA’s grant application submission for FY2019 FSS Coordinator funding in the amount of $72,000.

Adopted this 23rd day of October, 2019

Community Development Authority

David Baker, Chairman

Attest:

Julie Christensen, Executive Director

17


Agenda Number:

4d

Topic: Revision to Beloit Housing Authority’s Capitalization Policy




As a result of the April 24, 2018 Department of Housing and Urban Development (HUD) PIH On-Site Monitoring Review, HUD has recommended specific changes to the Beloit Housing Authority’s (BHA) Capitalization Policy.

Key Issues

1. HUD has mandated that the BHA revise its Capitalization Policy to ensure that it is in accordance with 2 CFR 200, which is related to uniform administrative requirements, cost principles, and audit requirements for Federal awards.

2. The BHA revised its Capitalization Policy in April 2019 to conform to 2 CFR 200. 3. The BHA has received additional guidance from HUD that an additional revision is necessary to further conform to 2

CFR 200.313 (d) (1).









Sustainability


N/A


Staff recommends approval of the attached resolution.


N/A

Attachments

Resolution 2019-28 and Revised Capitalization Policy

18

RESOLUTION 2019-28

APPROVING REVISIONS TO THE BELOIT HOUSING AUTHORITY’S (BHA) CAPITALIZATION

POLICY

WHEREAS, the Department of Housing and Urban Development (HUD) requires that the Beloit Housing Authority (BHA) periodically review and update policies;

WHEREAS, the April 24, 2018 HUD PIH On-Site Monitoring review noted specific

changes to the Capitalization Policy that must be made to be in compliance with HUD policies; WHEREAS, the BHA’s Capitalization Policy was reviewed and revised in April 2019 per

HUD requirements; WHEREAS, HUD has provided further guidance advising that an additional revision is

necessary to remain in compliance; NOW, THEREFORE BE IT RESOLVED, that the Community Development Authority (CDA)

Board of Commissioners approve the Capitalization Policy as attached. Adopted this 23rd day of October, 2019



Attest:


19

City of Beloit, Wisconsin Revised October 23, 2019

Page 1 of 4 CDA Policies and Procedures Capitalization Policy

COMMUNITY DEVELOPMENT AUTHORITY POLICIES AND PROCEDURES

Capitalization Policy

Newest Revision Date

October 23, 2019

Original Issue Date

September 11, 1985

Prior Revision Date(s)

April 24,2019 Pages

4

Special Instructions/Attachments

I. PURPOSE

The purpose of this policy is to ensure that the Beloit Housing Authority (BHA) is in compliance with the Uniform Administrative Requirements at 2 CFR 200 regarding the capitalization and disposition of fixed assets and non-real property (e.g. equipment).

II. POLICY Acquired Assets Physical assets acquired with unit costs in excess of $2,500 are capitalized as property and equipment on the BHA’s financial statements. Items with unit costs below this threshold shall be expensed in the year purchased.

Capitalized property and equipment additions are accounted for at their historical cost and all such assets, except land, are subject to depreciation over their estimated useful lives, as described later.

Capitalized assets will be reported as expensed for grants if they were so budgeted in the grant application. However, for the BHA’s financial statements, these assets will be capitalized and depreciated according to these policies. Contributed Assets Assets with fair market values in excess of $2,500 (per unit) that are contributed to BHA shall be capitalized as fixed assets on the financial statements. Contributed items with market values below this threshold shall be expensed in the year contributed. Capitalized contributed assets are accounted for at their market value at the time of donation and all such assets, except land and certain works of art and historical treasures, are subject to depreciation over their estimated useful lives. Equipment, Supplies and Furniture Purchased With Federal Funds (2 CFR 200) BHA may occasionally purchase equipment and furniture that will be used exclusively on a program funded by a Federal agency. Equipment and furniture charged to Federal awards will be subject to certain additional policies as described below.

20



For purposes of Federal award accounting and administration, "equipment" shall include all assets with a unit cost in excess of $2,500.

The following policies shall apply regarding equipment purchased and charged to Federal awards:

1. Adequate insurance coverage will be maintained with respect to equipment and furniture

charged to Federal awards.

2. The BHA Director shall determine whether a specific award with a Federal agency includes additional equipment requirements or thresholds and requirements that differ from those described above.

3. A physical inventory of all equipment purchased with Federal funds shall be performed at least

once every two years. The results of the physical inventory shall be reconciled to the accounting records.

4. Most maintenance supplies are ordered as needed; however, a physical count of supplies on

hand will be done annually and compared to the prior year’s inventory for any material fluctuations in the counts.

Establishment and Maintenance of a Fixed Asset Listing (Government Grants) All capitalized property and equipment shall be recorded in a database maintained by BHA. This database shall include the following information with respect to each asset: (2 CFR 200)

1. Date of acquisition

2. Cost

3. Depreciation method

4. Estimated useful life

Property records must be maintained that include a description of the property, a serial number or other identification number, the source of funding for the property (including the FAIN), who holds title, the acquisition date, and cost of the property, percentage of Federal participation in the project costs for the Federal award under which the property was acquired, the location, use and condition of the property, and any ultimate disposition data including the date of disposal and sale price of the property. A physical inventory of all assets capitalized under this policy will be taken at least once every two years by BHA. This physical inventory shall be reconciled to the BHA’s database and adjustments made as necessary. All adjustments resulting from this reconciliation will be approved by the BHA Director. Receipt of Newly-Purchased Equipment and Furniture At the time of arrival, all newly-purchased equipment and furniture shall be examined for obvious physical damage. If an asset appears damaged or is not in working order, it shall be returned to the vendor immediately.

21



In addition, descriptions and quantities of assets per the packing slip or bill of lading shall be compared to the assets delivered. Discrepancies should be resolved with the vendor immediately.

Depreciation and Useful Lives All capitalized assets are maintained in the special property and equipment account group and are not included as an operating expense. Property and equipment are depreciated over their estimated useful lives using the straight line method. In the year of acquisition, depreciation is recorded based on the number of days the asset is in service. The following is a list of the estimated useful lives of each category of fixed asset for depreciation purposes: Buildings 40 years

Building Improvements 15 years Equipment 10 years Computer Equipment 5 years Dwelling Equipment 15 years

For accounting and interim financial reporting purposes, depreciation expense will be recorded on a monthly basis.

Changes in Estimated Useful Lives If it becomes apparent that the useful life of a particular capitalized asset will be less than the life originally established, an adjustment to the estimated useful life shall be made. All such changes in estimated useful lives of capitalized assets must be approved by the BHA Director.

When a change in estimated useful life is made, the new life is used for purposes of calculating annual depreciation expense. In the year in which the change in estimate is made, the cumulative effect of the change shall be reflected as depreciation expense in the BHA’s statement of activities.

For example, if in the fourth year of an asset’s life, it is determined that the asset will last five years instead of the original estimate of seven years, depreciation expense for that year shall be equal to the difference between 4/5 of the asset’s basis (accumulated depreciation at the end of year four) and 3/7 of the asset’s basis (accumulated depreciation at the beginning of the year). Dispositions of Property and Equipment The first step in the disposition process is to send HUD a list of proposed equipment dispositions (which will also include equipment that is fully depreciated for accounting purposes) and request disposition instructions from HUD. If equipment is sold, scrapped, donated or stolen, adjustments need to be made to the fixed asset listing and property log. If money is received for the asset, then the difference between the money received and the "book value" (purchase price less depreciation) of the asset will be recorded as a loss (if the money received is less than the book value) or a gain (if the money received is more than the book value).

Write-Offs of Property and Equipment The BHA Director and Property Operations Coordinator recommend the disposal of all capitalized fixed assets that may be worn-out or obsolete. Property that is discovered to be missing or stolen will be reported immediately to the BHA Director. If not located, this property will be written off the

22



books when authorized by the CDA Board of Commissioners. The CDA Board of Commissioners approves the write-off/disposal of the assets from the general ledger.

Impairment Losses It is the policy of the organization to recognize an impairment loss in the statement of activities with respect to any property and equipment whose carrying amount (net book value) possesses both of the following characteristics:

1. The amount is not recoverable and

2. The amount exceeds fair value.

If only one of the preceding characteristics is present, an impairment loss will not be recorded. In determining whether a carrying amount is recoverable, all future cash inflows shall be considered, including cash flows from operations attributable to the asset, as well as cash flows from the sale of the asset. In cases in which no cash flows are directly attributable to an asset, the first characteristic is considered to have been met, and the determination of whether an impairment loss has been incurred will be based on the fair market value criterion.

Impairments are distinguishable from changes in estimates resulting from a determination that a depreciable asset will be useful for a shorter period of time than the original estimate (changes in estimated useful lives were explained earlier). When an impairment loss is incurred, the loss is recognized in the statement of activities in the period of the loss and the carrying amount of the long-lived asset is adjusted downward to the revised amount. If the asset is a depreciable asset, this lesser amount shall then be used for purposes of calculating future depreciation or amortization expense.

III. APPROVAL

This policy is hereby approved and intended to supersede any and all prior policies addressing capitalization.

Approved and adopted this 23rd day of October, 2019. David Baker Chairman

23


Agenda Number:

5a

Topic: Lease Agreement for parking spaces at the Broad Street Parking Lot between CDA and William T. Mansfield, Jr. Revocable Trust


Presenter: Julie Christensen Department: Economic Development


In 1998, the City of Beloit and William T. Mansfield Jr. entered into a lease agreement for the sole and exclusive use of several parking spaces in the Broad Street Parking Lot. The redesign of the parking lot and public walkway necessitated removing certain parking spaces from Mansfield’s property. Mr. Mansfield allowed the City of Beloit to construct a public walkway on his property in exchange for the City agreeing to designate certain parking stalls for his tenants’ parking. A new lease was prepared in 2014, which expired, and then another lease was prepared and approved by CDA earlier this year.

Key Issues

1. The 2019 Lease, recently approved by the CDA, contained a provision that the lease could not be assigned or sublet with CDA Consent. Since Mansfield is selling his properties located at 307, 311, and 317 State Street (State Street properties) to Hendricks Commercial Properties, LLC, the lease needed to be negotiated with them. The lease attached to this staff report includes similar provisions to the original lease but has added language related to use of the dumpster enclosures in the Broad Street parking lot.

2. Hendricks Commercial Properties, LLC surveyed the Mansfield properties as part of the sales process and identified gaps between the Mansfield properties and the CDA property (Broad Street Parking Lot). They are proposing to remove these gaps by executing mutual Quit Claim Deeds to the other with respect to the respective properties in order to eliminate any adverse claims to the other’s property.

3. Additionally, they are requesting an access easement along the backside of the State Street properties to ensure continued access to the rear of those buildings. It is attached to this staff report. We are recommending that a legal description of the access easement be provided prior to signing and recording of the easement.

4. Exhibit A of the proposed lease depicts the spaces that are the subject of the proposed lease agreement. The lease allows for 7 parking spaces to be utilized by the tenants of Hendricks Commercial Properties, LLC.

5. The lease shall begin on August 1, 2019 and shall terminate on September 30, 2030. Hendricks has the option to renew the lease for an additional ten-year term provided that he is not in default in his obligations under the lease at the expiration of any term and has given the CDA 30 day’s prior written notice of his option to renew the lease.

6. Hendricks is required to provide signs for the seven parking stalls that read “Reserved Tenant Parking, Permit Required. Wis. Stats. 346.55(4). Hendricks will then provide his tenants with a sticker, placard or other evidences that they can use the parking stalls.









Sustainability


N/A

Action Required/Recommendation 24

The lease is consistent with the original purpose and intent of the City Council in 1998. Therefore, staff recommends approval of the proposed lease agreement. Staff also recommends approval of the easement agreement and the transfer of property via Quit Claim Deed to resolve the title issues between the properties owned by the CDA and Mansfield.


The rent is $1.00 per year.

Attachments

Lease, Access Easement, Quit Claim Deeds, and Resolution 2019-29

25

RESOLUTION 2019-29

APPROVING A LEASE AGREEMENT AMONG THE COMMUNITY DEVELOPMENT AUTHORITY,

THE WILLIAM T. MANSFIELD, JR. REVOCABLE TRUST, AND HENDRICKS COMMERCIAL PROPERTIES LLC, AN ACCESS EASEMENT, AND THE ACQUISTION AND SALE OF MINOR

PARCELS OF LAND LOCATED ON OR NEAR THE BROAD STREET PARKING LOT

WHEREAS, the Community Development Authority had previously entered into a lease agreement with the William T Mansfield, Jr. Revocable Trust for parking stalls located behind the buildings located 307, 311, and 317 State Street (State Street properties); and

WHEREAS, the William T Mansfield, Jr. Revocable Trust is selling its State Street

properties to Hendricks Commercial Properties, LLC, and Hendricks Commercial Properties, LLC desires to lease the parking stalls behind the State Street properties as well as have access to the dumpster enclosures located within the Broad Street Parking lot located at 425 Broad Street; and

WHEREAS, Hendricks Commercial Properties, LLC has requested an access easement

along the back (east side) of the State Street properties to ensure continued access to those buildings; and

WHEREAS, Hendricks Commercial Properties, LLC has identified a number of conflicting

boundaries related to the State Street properties and the Broad Street Parking Lot and has requested to clean up the boundaries in this location to clear up confusion with the legal descriptions.

NOW, THEREFORE, BE IT RESOLVED, that the attached Lease Agreement among the

Community Development Authority of the City of Beloit, the William T. Mansfield, Jr. Revocable Trust and Hendricks Commercial Properties, LLC is hereby approved and that David Baker, Chairman, is hereby authorized to execute said Agreement.

BE IT FURTHER RESOLVED, that the attached Access Agreement and Quit Claim deeds

are hereby approved and that Julie Christensen be, and is hereby, authorized to execute the attached Access Agreement, Quit Claim deeds and any other documents required to convey the minor tracts of land described in the attached Quit Claim deeds to Hendricks Commercial Properties or William T Mansfield, Jr. Revocable Trust.

26

Adopted this 23rd day of October, 2019.



Attest:


27

Location MapMansfield Properties

BROAD ST

E GRAND AV

STATE

ST

425

430

430400

444

306

413 421

311

400

405

307

345

435431429

317

443

412

412

321

410323

437419

430

28

CA File 14-1156 Execution Version 20191023

Page 1 of 8 Broad Street Parking Lot Lease Agreement (CDA/Mansfield)

AMENDED LEASE AGREEMENT

WHEREAS, the Community Development Authority (hereinafter referred to as “CDA”) owns a public parking lot which is located at 425 Broad Street in the City of Beloit; and

WHEREAS, the William T. Mansfield, Jr. Revocable Trust (hereinafter referred to as

“Mansfield”) owns land and commercial buildings on the west side of the public parking lot identified on Exhibit A (“Mansfield Property”); and

WHEREAS, the City of Beloit reconstructed the public parking lot during the summer of 1995 on

the City Property identified on Exhibit B (“City Property”); and

WHEREAS, the City of Beloit, prior to reconstruction, asked Mansfield to relinquish eight (8) private parking stalls located on the west side of the public parking lot and to convert those parking stalls to a public sidewalk for use by pedestrians going to and from the public parking lot; and

WHEREAS, Mansfield agreed to convert his private parking stalls to a public sidewalk on the

condition that the City of Beloit lease seven (7) parking stalls in the public parking lot to Mansfield for use of his tenants and on the condition that the City of Beloit construct the sidewalk on the Mansfield Property; and

WHEREAS, the City of Beloit agreed to construct the sidewalk and to lease seven (7) parking

stalls in the public parking lot to Mansfield; and

WHEREAS, the City of Beloit and Mansfield entered into a 10-year lease in 1998 (“1998 Lease”) that included Mansfield’s right to renew for two additional 10-year terms; and

WHEREAS, Mansfield neglected to renew the lease as required by the terms of the initial lease

term; and

WHEREAS, the City of Beloit deeded the parking lot to the CDA in June of 2012; and WHEREAS, the CDA entered into a 4-year lease in October 2014 (“2014 Lease”) with Mansfield

which lease included the option to extend the lease term for an additional 10-year term; and WHEREAS, Mansfield neglected to renew the 2014 Lease as required by the terms of the 2014

Lease; and WHEREAS, notwithstanding Mansfield’s neglect to renew the 2014 Lease, the CDA entered into

an 11-year lease in July 2019 (“2019 Lease”) with Mansfield which lease included the option to extend the lease term for an additional 10-year term; and

29



WHEREAS, Mansfield is in the process of selling the Mansfield Property to Hendricks Commercial Properties, LLC (“Hendricks”); and

WHEREAS, Hendricks, in connection with such purchase, has recently surveyed the Mansfield

Property and determined that there are certain gaps between the Mansfield Property and the CDA Property; and

WHEREAS, Hendricks has also identified that there are two dumpster enclosures located on the

public parking lot owned by the CDA and is desirous of confirming an ongoing access and use right to said dumpster enclosures; and

WHEREAS, Hendricks in connection with its purchase has determined that the gaps between the

respective properties should be eliminated by the CDA and Hendricks executing mutual Quit Claim Deeds to the other with respect to their respective properties in order to eliminate any adverse claims to the other’s property.

NOW, THEREFORE, for good and valuable consideration, including the above recitals, it is agreed

between the CDA, Mansfield and Hendricks as follows: 1. Assignment and Substitution. Hendricks is herewith substituted by assignment from

Mansfield with respect to the rights contained in the 2019 Lease as extended and modified hereby. Mansfield shall cease to be a party to this Lease upon the sale of the Mansfield property to Hendricks.

2. Leased Property. Effective upon Hendricks’ purchase of the Mansfield Property, the

CDA hereby leases to Hendricks, for use by its tenants, seven (7) parking stalls in the public parking lot at 425 Broad Street. Those seven (7) parking stalls are shown on Exhibit C attached hereto and are numbered 1, 2, 3, 4, 8, 9 and 10. The parties understand and agree that these seven (7) parking stalls will be used by Hendricks’ tenants for vehicular parking. Such rights of use shall include access to, including those access points currently existing from public streets, as may be modified by the CDA in the future.

3. Access and License Rights to Dumpster Enclosures. The CDA hereby licenses to

Hendricks for use by its tenants, including access thereto, the two (2) dumpsters enclosures located in the public parking lot as shown on Exhibit C attached hereto.

4. Term of Lease. This lease shall commence on the 1st day of August, 2019, and shall

terminate on the 30th day of September, 2030. Hendricks shall have the option to renew this lease for an additional 10-year term provided that Hendricks is not in default in its obligations under this lease at the expiration of any term. Hendricks shall give the CDA written notice of its intent to exercise its option to renew this lease at lease thirty (30) days prior to the expiration of the term.

30



5. Rent. Hendricks shall pay the CDA One Dollar ($1.00) per year as rent. The rent shall be paid to the City Treasurer at 100 State Street, Beloit, Wisconsin. The first year’s rent shall be made on or before the 1st day of December, 2019. Subsequent rent payments shall be paid annually on or before the 1st day of December. Hendricks may prepay rent at its convenience. If this agreement is terminated for any reason prior to the expiration of the term, any rents that were prepaid shall not be refunded.

6. Signage for Parking Stalls. Hendricks shall provide signs for the seven parking stalls

which shall be kept in good condition. The signs shall read: “Reserved Tenant Parking, Permit Required. Wis. Stats. 346.55(4).” Hendricks shall provide its tenants with a sticker, placard or other evidence that they are permitted to use the leased parking spaces. The permit shall be conspicuously displayed on each tenant’s vehicle while the vehicle is in the leased parking stall. Hendricks shall provide the CDA and the Beloit Police Department with a copy of the permit which authorizes use of the leased parking spaces.

7. Maintenance. The CDA shall maintain the structural elements of the leased parking

stalls and shall maintain pavement markings associated with those stalls. If, for any reason, the CDA, in its sole discretion, determines that it is necessary to temporarily close the parking lot for maintenance or construction, the CDA shall not be obligated to provide alternative parking arrangements for Hendricks or its tenants. Hendricks shall be responsible to keep the parking stalls in a neat and clean condition. The CDA shall perform routine maintenance and snow removal.

8. Assignment. Hendricks may not assign or sublet its interest in this lease to any other

person or organization without the consent of the CDA. This paragraph is not intended to require that Hendricks obtain prior CDA approval for the issuance of parking permits to its tenants.

9. Indemnification. Hendricks agrees to hold the CDA harmless and to indemnify the CDA

for any liability arising from Hendricks’s use of the premises during the term of this Lease. 10. Default and Notice of Default. In the event that either party to this agreement is in default

on any of its obligations under this agreement, the non-defaulting party shall notify the defaulting party, in writing, of such default. The notice shall clearly identify the alleged default and the action necessary to cure the same. The notice shall give the defaulting party thirty (30) days in which to cure the default. In the event that the defaulting party fails to cure the default, the non-defaulting party may pursue any remedy available under the law, including the right to terminate this lease.

11. Amendments. This lease may be amended only by written mutual agreement of the

CDA and Hendricks.

31



12. Notices. Notices to the parties to this Lease shall be as follows: CDA: Community Development Authority

Attn: Julie Christensen, Executive Director 100 State Street Beloit, WI 53511 (608) 364-6703

Mansfield: William T. Mansfield, Jr. Revocable Trust

Attn: Bill Mansfield 1509 Oak Opening Drive Stoughton, WI 53589 (608) 577-5056

Hendricks: Hendricks Commercial Properties, LLC Attn: Leasing Department 525 Third Street, Suite 300 Beloit, WI 53511 (608) 362-8981

Signature Page to Follow

32



Dated this ____ day of _________________, 2019.

COMMUNITY DEVELOPMENT AUTHORITY By:__________________________________

David G. Baker, Chairman ATTEST: By:__________________________________


Dated this ____ day of _________________, 2019.

WILLIAM T. MANSFIELD, JR. REVOCABLE TRUST By: __________________________________

(signature)

__________________________________ (print name)

Its _______________________________

(print title) ATTEST: By:__________________________________

(signature)

__________________________________ (print name)

Its _______________________________

(print title) Dated this ____ day of _________________, 2019.

HENDRICKS COMMERCIAL PROPERTIES, LLC By: __________________________________

(signature)

__________________________________ (print name)

Its _______________________________

(print title)

33



EXHIBIT A

Mansfield Property

34



EXHIBIT B

CDA Property [to be verified]

35



EXHIBIT C

36

10.15.19 1

This Access Easement (this “Easement”) is made as of this ___ day of ____________, 2019 by and between Community Development Authority of the City of Beloit (“CDA”) and HENDRICKS COMMERCIAL PROPERTIES, LLC, a Wisconsin limited liability company (“HCP”),. WHEREAS, the CDA is the owner of a site more particularly described on Exhibit A (“CDA Site”); and WHEREAS, HCP is the owner of the property legally described on the attached Exhibit B (“HCP Site or Sites”); and WHEREAS, HCP has recently purchased the HCP Sites and has entered into agreements with the CDA confirming lot lines between their respective properties and the parties desire to confirm the rights of HCP, its successors and assigns to continue to enjoy access through the CDA site for purposes of accessing the HCP Sites for future tenants, agents, contractors, licensees, lessees, guests and invitees of HCP NOW THEREFORE, in consideration of Ten Dollars ($10.00) and the terms, conditions, covenants and mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1. Permanent Limited Easement for Access, Ingress and Egress for Use. CDA does grant, convey and warrant to HCP and the HCP Sites and its respective tenants, agents, contractors, licensees, lessees, guests, invitees, grantees, employees, representatives, successors, assigns and its deemed invitees a nonexclusive, perpetual right and easement over, through, across and along that portion of CDA’s property described in Exhibit C (“CDA Easement Area”) which is attached to this Agreement and is incorporated into this Agreement by this reference, for the purpose of access, ingress and egress to the HCP Site at any and all times to and from any and all streets, roadways, paths, driveways and highways located at any time adjacent to the CDA Easement Area for the purposes herein described. Each and all of the rights, privileges and easements conferred upon HCP and the HCP Site pursuant to this Agreement (including, without limitation, the right to gain access to, through and over the CDA Easement Area) may be exercised by HCP from time to time and at any time without any notice (prior or subsequent) to the CDA. In the event the CDA Easement Area is disturbed by HCP’s exercise of any of its easement rights under this Agreement, such area shall be restored to the condition in which it existed at the commencement of such activities.

ACCESS EASEMENT

Recording Area Name and Return Address Hendricks Commercial Properties, LLC 525 Third Avenue, Suite 300 Beloit, WI 53511 Attn: Lori Goff Parcel Identification Number (PIN)

Document Number

Document Title

37

10.15.19 2

2. Permanent Limited Easement for Access, Ingress and Egress to CDA

Parking Lot. The CDA does grant, convey and warrant to the HCP and its respective tenants, agents, contractors, licensees, lessees, guests, traveling public, invitees, grantees, employees, representatives, successors, assigns and its deemed invitees a nonexclusive, perpetual right and easement over, through, across and along that portion of CDA’s property described in Exhibit C (“CDA Parking Lot Easement Area”) which is attached to this Agreement and is incorporated into this Agreement by this reference, for the purpose of access, ingress in and to the parking lot on CDA Property, at any and all times to and from any and all streets, roadways, paths, driveways and highways located at any time adjacent to the CDA Easement Area for the purposes herein described.

3. Indemnity. HCP shall defend, indemnify and save harmless the CDA, its respective tenants, officers, agents, members and employees, respectively, against liens arising out of the use of such indemnifying party, its respective tenants, officers, agents, members and employees, or for liability or claim thereof for injury to persons, including death, or damage to property (i) arising out of any maintenance on, construction in or negligent or intentional actions in the CDA Easement Area, performed by such indemnifying party its respective employees, licensees or contractors and its agents or employees or (ii) arising out of any defaults by such indemnifying party hereunder.

4. Notices. Notices in demand required or permitted to be given hereunder shall be given by certified mail return receipt requested, or by a national overnight express service such as Federal Express, addressed to the parties at their respective addresses as follows: If to HCP: Hendricks Commercial Properties, LLC 525 Third Street, Suite 300 Beloit, WI 53511 Attn: Rob Gerbitz If to the CDA: Community Development Authority 100 State Street Beloit, WI 53511 Attn: Julie Christensen, Executive Director or at such other address as specified in writing by such party. Unless otherwise specified to

the contrary in this Easement, all notices shall be deemed to have been given upon receipt (or refusal of receipt) thereof.

5. Insurance. HCP shall maintain or cause to be maintained commercial general

liability insurance containing coverage for injuries to persons and damage to property in the CDA Easement Area in the amount of at least $1,000,000 for injuries arising from a single occurrence and

38

10.15.19 3

$1,000,000 for damage to property. Such insurance shall name the CDA as an additional insured. The cost of such insurance shall be borne by HCP exclusively. Notwithstanding the foregoing, the insurance required to be maintained pursuant to this Section may be maintained via a program of self-insurance.

6. Costs. Upon the occurrence of any breach or default under this Easement by any of the parties, the defaulting party shall be liable for and shall reimburse the non-defaulting party(s) upon demand for all reasonable attorney’s fees and costs incurred by non-defaulting party(s) in enforcing the defaulting party’s obligations under this Easement, whether or not the non-defaulting party files legal proceedings in connection therewith.

7. No Strict Construction. The rule of strict construction does not apply to the grant of easements contained herein. The grants shall be given a reasonable construction in order that the intention of the parties to confer a commercially useable right of enjoyment to the CDA and HCP with respect to such easement shall be effectuated. The parties acknowledge that the parties and their counsel have reviewed and revised this Easement and that the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Easement or any exhibits or amendments hereto.

8. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original. The signature of the parties hereto on this Agreement may be executed and notarized on separate pages, and when attached to this Agreement shall constitute one complete document.

9. Captions. The section headings appearing in this Agreement are for convenience of reference only, and are not intended, to any extent and for any purpose, to limit or define the text of any section or subsection hereof.

10. No Partnership. None of the terms and provisions of this Agreement shall be deemed to create a partnership between or among the parties hereto in their respective businesses or otherwise, nor shall any terms or provisions of this Agreement cause them to be considered joint venturers or members of any joint enterprise.

11. No Cancellation Upon Breach. It is expressly agreed that no breach of this Agreement shall entitle any party to cancel, rescind or otherwise terminate this Agreement.

12. Further Assurances. Each party agrees that it will execute and deliver such other documents and take such other action as may be reasonably requested by the other party to effectuate the purposes and intention of this Agreement.

13. Exhibits. All exhibits referred to herein and attached hereto shall be deemed part of this Agreement.

14. Recording. This Agreement shall be recorded in the records of Rock County, Wisconsin.

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15. Governing Laws. The internal laws of the State of Wisconsin shall apply to this

Agreement without giving effect to the choice of law provisions of such State.

16. Severability. If any term, provision or condition contained in this Agreement shall, to any extent, be invalid or unenforceable, the remainder of this Agreement (or the application of such term, provision or condition to persons or circumstances other than those in respect of which it is invalid or unenforceable) shall not be affected thereby, and each term, provision or condition of this Agreement shall be valid and enforceable to the fullest extent permitted by law.

17. No Waiver. No waiver of breach of any of the easements, covenants and/or agreements herein contained shall be construed as, or constitute a waiver of any other breach or a waiver, acquiescence in or consent to any further or succeeding breach of the same or any other covenant and/or agreement.

18. Modification. This Agreement, or any covenant, restriction or undertaking contained herein, may be terminated, extended or amended as to any portion of any of the properties subject hereto only by the recording of the appropriate documents in the records of Rock County, Wisconsin, which documents must be executed by all of the owners, mortgagees and other holders of recorded interest in any of the properties affected thereby as of the date of such documents.

19. Covenants Running with the Land. The terms, conditions, rights and easements contained herein shall be covenants running with the land and shall be perpetual. This Agreement shall be recorded against the CDA Site and the CDA Easement Area, and the terms and conditions contained herein shall bind, inure to the benefit of, and be enforceable by, the parties hereto and their respective successors and assigns (including, without limitation, the successors in title to the HCP Site, the CDA and the successors in title to the CDA Easement Area). The rights of use described in Paragraphs 1 and 2 hereof shall extend to HCP and its successor in title. The obligations imposed by this Agreement shall apply only to the then current owners of the HCP Site. The Easement granted shall not operate to convey to HCP or to the CDA any of the other party’s fee interest in any parcels or any part thereof.

20. Estoppel. Each party hereto shall from time to time as requested by the other party execute and deliver to the requesting party (or to a party designated), within ten (10) days of demand therefor, a written statement which shall confirm that there is no default under this Agreement (or specifying any default) and which shall contain such other information or confirmations as may reasonably be required.

Remainder of Page Intentionally Blank

SEPARATE SIGNATURE PAGE TO FOLLOW

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IN WITNESS WHEREOF, the parties hereto have executed this Access Easement Agreement this _____ day of ___________, 2019. HCP: HENDRICKS COMMERCIAL PROPERTIES, LLC, a Wisconsin limited liability company By:______________________________________ Diane M. Hendricks, Manager and Chairperson of the Board

ACKNOWLEDGMENT STATE OF WISCONSIN ) ) SS. ROCK COUNTY ) Personally came before me this ____ day of ___________, 2019, the above named Diane M. Hendricks, Manager and Chairperson of the Board of Hendricks Commercial Properties, LLC, to me known to be said Manager and Chairperson of the Board and acknowledged that she executed the foregoing instrument as such Manager and Chairperson of the Board as the deed of said company, by its authority. ______________________________________________ Notary Public, State of Wisconsin My Commission Expires:

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CDA: Community Development Authority By: David G. Baker, Chairman Attest: By: Julie Christensen, Executive Director

ACKNOWLEDGMENT STATE OF WISCONSIN ) ) SS. ROCK COUNTY ) Personally came before me this ______ day of ___________________, 2019 the above named David G. Baker and Julie Christensen, the Chairman and Executive Director, respectively, of the Community Development Authority to me known to be such Chairman and Executive Dirctor and acknowledged that he/ executed the foregoing instrument as the deed of said corporation, by its authority. ______________________________________________ Notary Public, Rock County, Wisconsin My Commission is/expires ______________________________

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EXHIBIT A CDA Site [to be verified]

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EXHIBIT B HCP Site

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EXHIBIT C CDA Easement Area

See Attached

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amended community development authority parker bluff … · staff present: julie christensen,...

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