Community Development Authority Meeting — Agenda Packet

VILLAGE OF MOUNT HOREB E. Main Street Mount Horeb, WI 53572 Phone: (608) 437-6884 Fax: (608) 437-3190 Email: mhinfo@mounthorebwi.info Web: mounthorebwi.info COMMUNITY DEVELOPMENT AUTHORITY AGENDA Wednesday, June 10, 2026 at 6:00 PM Municipal Building Board Room 138 E. Main Street Mount Horeb, WI 1) Public Comments on Non-Agenda Items* 2) Call to order 3) Consent Agenda a. Consideration of May 13, 2026 Meeting Minutes b. Economic Development Director's report c. Mount Horeb Area School District report d. Mount Horeb Area Chamber of Commerce Report 4) Agenda Items a. Supportive Housing Program Partnership with JT Klein b. CDA Future Focus Areas 5) Meeting adjournment. *Public Comment Policy Members of the public are invited to speak at meetings of all Mount Horeb Public Bodies. To comment, please complete a Public Comment Form at the Meeting Room entrance and submit it to staff before the meeting begins. Comments are limited to three minutes, must be made from the podium, and the speaker must return to the audience after speaking. • Non-agenda item comments are heard at the start of the meeting. Public Body members and staff will not engage in discussion during public comment but may consider topics for future agendas. • Agenda item comments are heard during the relevant item, after the proposers or staff present the item and before Public Body discussion. All public comments on the item will be heard before any discussion by the Public Body. Members of the public will only be allowed to speak outside these public comment times if they are invited by the meeting chair to share additional information requested by the Public Body. If so invited to speak, the member of the public must do so from the podium. Written comments are also welcome. Written comments shall include the name and address of the submitter and should be submitted to the Deputy Treasurer/Governance Coordinator by email at niki.erickson@mounthorebwi.info (subject line: Public Comment Request-Name of Public Body) or delivered by to the Village at: 138 E Main Street, Mount Horeb WI, 53572, ATTN Public Comment Request-Name of Public Body. UPON REASONABLE NOTICE, EFFORTS WILL BE MADE TO ACCOMMODATE THE NEEDS OF DISABLED INDIVIDUALS THROUGH APPROPRIATE AIDS AND SERVICES. FOR INFORMATION OR TO REQUEST THIS SERVICE, CONTACT ALYSSA GAFFNEY, CLERK, AT 138 E MAIN STREET, MOUNT HOREB, WI (608) 437-9404. Page 1 of 10 Page 2 of 10 Page 3 of 10 June 5, 2026 To: Community Development Authority From: Kristen Fish-Peterson, Economic Development Contracted Staff Re: Report on work to date What follows is a list of activities for May: 1. Meetings in person and virtual a. Jon Hochkammer individually (in person, virtually, phone, and emails) b. Meetings regarding Lukken Property c. Attendance at CDA meeting d. Attendance at Village Board meeting e. Meetings with Allison Plumer, Chamber President/CEO f. Meetings with land owners and potential developers/brokers regarding housing land availability g. Correspondence with all applicants for Home Improvement Grant Program h. Meeting with property owners re: annexation i. Online meeting with new administrator j. Phone calls and emails with retail prospects k. Training meeting for new Village Board member re: economic development 2. Follow up from meetings 3. Work to certify TID 6 with WI DOR 4. Review of map and follow up for work toward business park potential development Page 4 of 10 AGENDA ITEM REPORT MEETING DATE PREPARED BY June 10, 2026 AGENDA ITEM # 3.c Mount Horeb Area School District report BACKGROUND MHASD Monthly Report Board Communication - Mount Horeb Area School District RECOMMENDATION ATTACHMENTS None Page 5 of 10 JUNE 2026 Chamber Report mounthorebchamber.com 608-437-5914 info@trollway.com T h e C h a m b e r c o n t i n u e s t o p r e p a r e f o r a b u s y s u m m e r a n d f a l l e v e n t s e a s o n , w i t h b o t h A r t F a i r a n d F a l l V i l l a g e M a r k e t c u r r e n t l y t r a c k i n g a t v e n d o r p a r t i c i p a t i o n l e v e l s s i m i l a r t o t h e 2 0 2 5 e v e n t s . P l a n n i n g e f f o r t s a r e a l s o u n d e r w a y f o r t h e G o l f O u t i n g , W i t c h e s ' N i g h t O u t , a n d T r o l l i d a y s , a n d w e a r e h a p p y t o b e s u p p o r t i n g b o t h t h e F r o l i c a n d T y r o l B a s i n ’s 2 0 2 6 T h i r s t y T r o l l B r e w f e s t . O n J u n e 2 , t h e C h a m b e r h o s t e d a s t r a t e g i c p l a n n i n g s e s s i o n i n v o l v i n g 1 0 C h a m b e r B o a r d m e m b e r s a n d c o m m u n i t y p a r t n e r s . T h e g r o u p s p e n t t h e e v e n i n g e v a l u a t i n g p r i o r i t i e s , i d e n t i f y i n g o p p o r t u n i t i e s , a n d d i s c u s s i n g l o n g - t e r m o r g a n i z a t i o n a l g o a l s . W e l o o k f o r w a r d t o s h a r i n g t h e r e s u l t s o f t h a t p r o c e s s w i t h t h e c o m m u n i t y l a t e r t h i s s u m m e r . W e r e c e n t l y r e c e i v e d a n e w l y r e d e s i g n e d J o r g e n c o s t u m e , w h i c h w i l l m a k e i t s d e b u t a t t h i s y e a r ' s F r o l i c p a r a d e . T h e u p d a t e d c o s t u m e w a s c r e a t e d t o p r e s e r v e t h e c h a r a c t e r ' s f a m i l i a r a p p e a r a n c e w h i l e i m p r o v i n g t h e l o o k a s w e l l a s c o m f o r t a n d d u r a b i l i t y f o r v o l u n t e e r s . L o o k i n g a h e a d , t h e C h a m b e r p l a n s t o e x p a n d J o r g e n ' s r o l e i n t o u r i s m m a r k e t i n g e f f o r t s a n d i s d e v e l o p i n g a d d i t i o n a l " T r o l l C a p i t a l o f t h e W o r l d " b r a n d i n g i n i t i a t i v e s t a r g e t e d f o r l a u n c h t h i s f a l l . P l a n s a r e a l s o b e i n g f o r m a l i z e d f o r a W e l c o m e C e n t e r i m p r o v e m e n t i n i t i a t i v e t h a t w i l l s e r v e a s t h e f o u n d a t i o n f o r f u n d r a i s i n g e f f o r t s b e g i n n i n g l a t e r t h i s s u m m e r . T h e s e i m p r o v e m e n t s a r e i n t e n d e d t o e n h a n c e t h e v i s i t o r e x p e r i e n c e w h i l e p r e s e r v i n g a n d s t r e n g t h e n i n g t h i s i m p o r t a n t c o m m u n i t y a s s e t . F i n a l l y , t h e V i l l a g e o f B a r n e v e l d o f f i c i a l l y a p p r o v e d a r o o m t a x o r d i n a n c e o n J u n e 1 , a l o n g w i t h a n i n t e r g o v e r n m e n t a l a g r e e m e n t e s t a b l i s h i n g a j o i n t t o u r i s m m a r k e t i n g z o n e a n d t o u r i s m c o m m i s s i o n w i t h t h e V i l l a g e o f M o u n t H o r e b . T h e M o u n t H o r e b A r e a C h a m b e r o f C o m m e r c e h a s b e e n d e s i g n a t e d a s t h e m a r k e t i n g o r g a n i z a t i o n a n d l o o k s f o r w a r d t o w o r k i n g c o l l a b o r a t i v e l y w i t h b o t h c o m m u n i t i e s t o s u p p o r t r e g i o n a l t o u r i s m p r o m o t i o n a n d d e v e l o p m e n t . Page 6 of 10 AGENDA ITEM REPORT MEETING DATE PREPARED BY June 10, 2026 AGENDA ITEM # 4.a Supportive Housing Program Partnership with JT Klein BACKGROUND RECOMMENDATION ATTACHMENTS 1. JT Klein -- Term Sheet (Mount Horeb CDA) Updated 060625 Page 7 of 10 54033882 Nonprofit Partnership with JT Klein Term Sheet Purpose: JT Klein Company, Inc. (“JT Klein”) intends to develop an affordable and/or workforce housing development (the “Development”) in Mount Horeb, Wisconsin, which is intended to be approximately _____ units (subject to financial feasibility, market conditions, and land use approvals). This term sheet is intended to provide a general overview of the contemplated partnership with Community Development Authority for the Village of Mount Horeb, Wisconsin (the “Nonprofit”). Ownership: The Development will be owned by a special purpose entity created by JT Klein (the “Owner”). The Owner will have two or more members: an investor member (the “Investor”) (which may be a tax credit investor or may be another entity wholly owned or controlled by JT Klein); and a managing member (the “Managing Member”). The Managing Member will be owned 51% by the Nonprofit and 49% by JT Klein or an affiliate thereof. Cash Flow: The Owner’s cash flow will be dictated by a cash flow waterfall in the Owner’s operating agreement, which will be dictated by financial feasibility. Once all other cash flow obligations have been fulfilled (including, potentially, an asset management fee to the Investor, a deferred development fee, subordinate cash flow contingent debt, and incentive management fees payable to JT Klein or its affiliates), then the cash flow will be split 90% to the Managing Member and 10% to the Investor. The cash flow of the Managing Member will be split 99% to JT Klein (or its affiliate) and 1% to the Nonprofit (or its affiliate). Development Fee: The Owner will hire JT Klein to act as developer. The amount of the development fee will be determined by JT Klein and the Investor, based on financial feasibility. No portion of the development fee will be paid to the Nonprofit. Administrative Costs: The CDA shall not be responsible for administrative costs associated with annual reporting & filing requirements arising from the sponsorship of the AHP grant. In the event that the CDA incurs administrative costs related to such reports or filing, the CDA shall be reimbursed for the reasonable time and resources expended in connection with that work. Subordinate Loans: The Nonprofit will accept grants that will be used by the Owner to fund the Development (the “Grants”), and Nonprofit will use 100% of the proceeds of the Grants to make a nonrecourse loan (or loans) to the Owner (whether one or more, the “Subordinate Loans”). The Subordinate Loans’ terms will be subject to further review and comment by the Investor and Page 8 of 10 54033882 2 senior lenders to the Owner, however, are contemplated to be: (a) at least 40-year term; (b) deferred payments until the maturity of the loan; (c) non- interest bearing; and (d) nonrecourse to the Owner and its members. Origination Fee: The Nonprofit will receive an origination fee for making the Subordination Loans in an amount equal to 1.5% of the amount of the Grants received by the Nonprofit. Exit Provisions: The Nonprofit will retain its ownership in the Managing Member throughout the duration of any applicable tax credit compliance period. Upon the expiration of the tax credit compliance period, JT Klein (or its affiliates) has the right to acquire the Nonprofit’s interest in the Managing Member in exchange for $100.00. Upon acquiring the Nonprofit’s interest in the Managing Member, JT Klein (or its affiliates) may also buy the promissory notes evidencing the Subordinate Loans. The purchase price for the promissory notes evidencing the Subordinate Loans will be the present value of the future cash flow of such notes, discounted by 15%. Non-Binding: The provisions of this term sheet are meant to outline the overall transaction. They are not intended to summarize the entirety of the transaction. In addition, this term sheet is not binding on either party. Both parties will work in good faith to achieve the Development as provided herein, but the Nonprofit in particular acknowledges that many items may changes between now and the financial closing of the Development. Page 9 of 10 Strategic Focus Areas For Mount Horeb CDA CDA Prioritization 1 *this project follows Comprehensive Plan CDA - First stop for approvals (development agreement, design review, incentives) CDA - Host public input/open house on design CDA - Review future land use map for next opportunities to leverage increased infrastructure capacity 2 *this work aligns with Downtown Redevelopment Plan CDA - Discuss amendment to TID 5 to allow contribution to the CDA CDA - Review/explore residential and commercial development west of downtown Leverage Military Ridge Trail as connector to downtown Add bike parking/shelter Connection to Main Street Paving and lighting the trail Public space at depot building (use, management, programming) Discuss with DNR broader plan for parking adjacent to MRT and connection to Grandma Foster Park Residential development around trail, w/engagement of Grandma Foster Park CDA - Continue to assess parking needs downtown, and possible future additional parking options CDA - Discuss support for existing businesses - what does that look like from the Village? 3 Future Business Park *this work aligns with Comprehensive Plan Staff - Provide update on current status CDA - Strategize future direction, approach to business types, etc. 4 *this work considers future development potential in light of TID 3 closure Staff to explore owner's desire for future potential zoning change to facilitate more appropriate business interest Lukken Property Development Downtown Development/Redevelopment North Cape Commons Page 10 of 10