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, May 13, 2026 at 6:00 PM Municipal Building Board Room 138 E. Main Street Mount Horeb, WI 1) Call to order 2) Public Comments on Non-Agenda Items* 3) Consent Agenda a. Consideration of April 8, 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. Staff Presentation on Governance & Professional Standards Training b. Electing of the Chair and Vice-Chair c. Update on direction for the Lukken Property 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 Page 1 of 21 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 2 of 21 Page 3 of 21 Page 4 of 21 Page 5 of 21 May 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 April: 1. Meetings in person and virtual a. Nic Owen and 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, Chamber Board meeting (virtual) f. In person, telephone and online meetings for Lukken RFP with interested parties, proposal review team g. Meetings with land owners and potential developers/brokers regarding housing land availability h. Correspondence with all applicants for Home Improvement Grant Program 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 5. Participation in executive search for new administrator (staff review of applicant resumes/videos) Page 6 of 21 AGENDA ITEM REPORT MEETING DATE PREPARED BY May 13, 2026 AGENDA ITEM # 3.c Mount Horeb Area School District report BACKGROUND MHASD Monthly Report https://www.mounthorebschools.org/district/board-of-education/board-communication RECOMMENDATION ATTACHMENTS None Page 7 of 21 MAY 2026 Chamber Report mounthorebchamber.com 608-437-5914 info@trollway.com T h e C h a m b e r h a s m o v e d f u l l y i n t o i t s e v e n t s e a s o n f o l l o w i n g t w o l a t e - A p r i l p r o g r a m s . T h e 2 0 2 6 V i l l a g e - W i d e S p r i n g G a r a g e S a l e s g e n e r a t e d s t r o n g p a r t i c i p a t i o n w i t h 7 7 r e g i s t e r e d s a l e s , a n d t h e C h a m b e r d i s t r i b u t e d a p p r o x i m a t e l y 2 , 0 0 0 p r i n t e d s a l e m a p s t h r o u g h o u t t h e c o m m u n i t y a n d r e g i o n . S h o p p e r s t r a v e l e d f r o m w e l l b e y o n d t h e i m m e d i a t e a r e a , r e i n f o r c i n g t h e e v e n t ’s c o n t i n u e d r o l e i n b r i n g i n g a d d i t i o n a l v i s i t o r t r a f f i c i n t o M o u n t H o r e b d u r i n g a n o t h e r w i s e t y p i c a l s p r i n g w e e k e n d . T h e C h a m b e r a l s o h o s t e d i t s S p r i n g J o b F a i r o n A p r i l 2 5 w i t h 1 2 l o c a l b u s i n e s s e s r e p r e s e n t e d . E m p l o y e r p a r t i c i p a t i o n w a s s t r o n g ; h o w e v e r , a s a n t i c i p a t e d , a p p l i c a n t a t t e n d a n c e r e m a i n e d m o d e s t , r e f l e c t i n g t h e c o n t i n u e d d i f f i c u l t y m a n y c o m m u n i t i e s a r e e x p e r i e n c i n g i n d r a w i n g t r a f f i c t o i n - p e r s o n h i r i n g e v e n t s . P l a n n i n g a l s o c o n t i n u e s f o r W e l c o m e C e n t e r f a c i l i t y i m p r o v e m e n t s a n d t h e f u n d r a i s i n g e f f o r t s t h a t w i l l b e r e q u i r e d t o s u p p o r t t h o s e p r o j e c t s . S i d i n g r e p a i r a n d r e p l a c e m e n t i s t h e n e x t m a j o r m a i n t e n a n c e p r i o r i t y a s t h e C h a m b e r w o r k s t o p r e s e r v e a n d i m p r o v e t h i s i m p o r t a n t v i s i t o r - f a c i n g c o m m u n i t y a s s e t . A s p a r t o f o n g o i n g d o w n t o w n o u t r e a c h e f f o r t s , K r i s t e n F i s h P e t e r s o n a n d A l l i s o n P l u m e r w i l l v i s i t d o w n t o w n b u s i n e s s e s o n M a y 6 t o s h a r e 2 0 2 5 v i s i t o r d a t a a l o n g w i t h u p d a t e d p a r k i n g i n f o r m a t i o n . T h e g o a l o f t h e s e v i s i t s i s t o c o n t i n u e s t r e n g t h e n i n g c o m m u n i c a t i o n b e t w e e n t h e C h a m b e r a n d d o w n t o w n s t a k e h o l d e r s . I n a d d i t i o n , t h e C h a m b e r r e c e n t l y o b t a i n e d a s m a l l g r a n t f r o m t h e M o u n t H o r e b R o t a r y t o a s s i s t i n l a u n c h i n g p r o m o t i o n a l e f f o r t s t i e d t o M o u n t H o r e b ’s n e w B i r d C i t y W i s c o n s i n d e s i g n a t i o n . C h a m b e r s t a f f w i l l w o r k a l o n g s i d e K e r r y B e h e l e r a n d l o c a l p a r t n e r s t o b e g i n b u i l d i n g a w a r e n e s s a r o u n d t h i s r e c o g n i t i o n a n d e n c o u r a g i n g b r o a d e r c o m m u n i t y p a r t i c i p a t i o n i n r e l a t e d i n i t i a t i v e s . Page 8 of 21 Page 9 of 21 Page 10 of 21 Page 11 of 21 Page 12 of 21 Page 13 of 21 Wisconsin’s Ethics Laws Recognizing and Avoiding Conflicts of Interest 2023 Local Government 101 Presented by Claire Silverman, Legal Counsel Maria Davis, Assistant Legal Counsel League of Wisconsin Municipalities, Ph. 608-267-2380 I. INTRODUCTION A. Coverage. This outline provides an overview of state laws that guide the actions of municipal officials when those officials (or a member of their family or an organization with which they are associated) have a financial or other special interest in a governmental matter. In particular, this outline provides an overview of the state ethics code applicable to local officials, the statute governing private interests in public contracts, statutory provisions defining official misconduct, and the compatibility doctrine. B. Identifying Potential Conflict Situations. The state statutes contain minimum standards of ethical conduct by local government officials. The statutes relating to ethics and conflicts of interest are interrelated and can be quite complicated. Problems in this area can be avoided primarily by using common sense and applying the “smell test.” Stated broadly, when an official, a member of the official's family or a business organization with whom the official is associated is involved in a municipal matter, the official needs to step back and question whether there are problems concerning his o r her involvement in the matter. The official may want to discuss the situation with the municipal attorney. Local officials may also contact the League's attorneys to discuss ethics issues. Sometimes it is not clear whether a conflict, as defined by sta te law, exists. In these gray areas, the official needs to balance the benefits of involvement (e.g., representing the electors, using the official ’s expertise) against the drawbacks (e.g., how it would look, the risk of violating a law). Sometimes, even if it may be legal to act on a matter, you may not feel comfortable doing so or it may not look good to do so. II. STATE CODE OF ETHICS FOR LOCAL GOVERNMENT OFFICIALS (Sec. 19.59, Stats.) A. Background. The state code of ethics for local officials was cr eated in the 1991 legislative session and took effect in 1992. The law applies to “ local governmental units, ” including Page 14 of 21 counties, cities, villages and towns, as well as special purpose districts, such as town sanitary districts. Sec. 19.42(7u), Stats. The law also covers joint bodies and subunits of local governmental units. The law was overseen by the State of Wisconsin Government Accountability Board (GAB). Effective June 30, 2016, 2015 Wis. Act 118 replaces the Government Accountability Board with separate commissions governing Ethics and Elections. B. Municipal Officials Affected. The state ethics code applies to “ local public officials” who hold “local public office.” Sec. 19.42(7w) and (7x), Stats. 1. “Local public office ” includes elected municipal officers; city and village managers, appointed municipal officers and employees who serve for a specified term; and officers and employees appointed by the governing body or executive or administrative head who serve at the pleasure of the appointing authority. 2. The term does not include independent contractors and persons who perform only ministerial (i.e., non-discretionary) tasks, such as clerical workers. In addition, the term omits officials and employees who are appointed for indefinite terms and are only removable for cause, such as police chiefs and fire chiefs. C. Prohibited Conduct. The state ethics law for local officials, sec. 19.59, Stats., prohibits the following conduct: 1. Use of Office for Private Gain . Public officials are prohibited from using their offices to obtain financial gain or anything of substantial value for the private benefit of themselves, their immediate families, or organizations with which they are associated. Sec. 19.59(l)(a), Stats. 2. Offering or Receiving Anything of Value. No person may give and no public official may receive “anything of value” if it could reasonably be expected to influence the local public official’s vote, official action or judgment, or could reasonably be considered as a reward for any official action or inaction. Sec. 19.59(l)(b), Stats. Note: This outline does not cover sec 19.59(1)(br). That section was created as part of a larger law aimed at campaign finance reform but the courts held the law was unconstit utional, and that particular section was held to be unseverable from the larger law. See Wisconsin Right to Life, Inc. v. Schober, 366 F.3d 485 (7th Cir. 2004) and Wisconsin Realtors Ass’n v. Ponto, 233 F. Supp. 2d 1078 (W.D. Wis. 2002). 3. Taking Action Affecting a Matter in Which Official Has Financial Interest. Local officials may not take official action substantially affecting a matter in which the official, an immediate family member, or an organization with which the official is associated has a substantial financial interest. Nor may an official use his or her office in a way that produces or assists in the production of a substantial benefit for the official, immediate family member or organization with which the official is associated. Sec. 19.59(1)(c), Stats. Page 15 of 21 a. Exceptions. The prohibitions under no. 3 above do not prohibit local officials from taking lawful actions concerning payments for employee salaries, benefits, or expense reimbursements. The above prohibitions also do not prohibit local officials from taking action “to modify” an ordinance. Sec. 19.59(1)(d), Stats. The State of Wisconsin Ethics Commission’s guidelines suggest that local officials can take action in situations where they are part of a similarly situated class of interests and their interest is not significantly greater or less than other members of that class or where the law will have general application (e .g., like an ordinance). For purposes of this exception, the Ethics Commission distinguishes between making and applying policy. See attached Ethics Guideline 1240, Mitigating Conflicting Interests. D. Definitions: 1. “Immediate Family” means an official's spouse or relative by marriage, lineal descent or adoption who receives, directly or indirectly, more than one -half of his or her support from the official or contributes, directly or indirectly, that amount for the official's support. Sec. 19.42(7), Stats. 2. “Organization” is broadly defined to cover “any corporation, partnership, proprietorship, firm, enterprise, franchise, association, trust or other legal entity other than an individual or body politic.” 3. “Associated” with an Organization. An official is “ associated” with an organization for purposes of the state ethics law when the individual or a member of the individual's immediate family is an officer, director or trustee, or owns at least 10% of the organization. An individual is not associated with an organization merely because the individual is a member or employee of an organization or business. Sec. 19.42(2), Stats. 4. “Anything of value ” means any money or property, favor, service, payment, advance, forbearance, loan, or promise of future employment, but does not include compensation and expenses paid by the state, fees and expenses which are permitted and reported under s. 19.56, political contributions which are reported under ch. 11, or hospitality extended for a purpose unr elated to state business by a person other than an organization. Sec. 19.42(1). E. Conflict Response: Withdrawal. Ethics Commission guidelines provide that when a matter in which a local official should not participate comes before a board, commission or other body which the official is a member of, the official should not participate in any portion of the body’s meeting involving discussion, deliberations, or votes related to the matter. When, because of a potential conflict of interest, an official withdraws from the body’s discussion, deliberation, and vote, the body’s minutes should reflect the absence. See Ethics 1232. F. Local Ordinances. Municipalities can adopt ethics ordinances that: • require disclosure of economic interests Page 16 of 21 • establish ethics boards • prescribe standards of conduct • establish forfeitures not exceeding $1,000 G. Ethics Advisory Opinions. Local officials may request advisory ethics opinions from the municipal ethics board or, if there is none, from the municipal attorney. o Effect of Opinion. The local ethics board or attorney may issue a written advisory opinion. If the official follows the advice in the opinion, it is evidence of intent to comply with the law. H. Penalties & Enforcement. Any person who violates the state ethics law may be required to forfeit up to $1,000. The law is enforced by the district attorney. I. Interpretation. The state code of ethics for local officials has not been interpreted in published court decisions. However, the State Ethics Commission has guidelines which are available online at https://ethics.wi.gov/Pages/Resources/ResourcesOverview.aspx . The guidelines include the following: 1. Citizen’s Guide to Standards of Conduct for Local Officials (ETH- 1202). 2. Receipt of Items and Services (for Municipal Judges) (ETH-1215). 3. Local Officials’ Receipt of Food, Drink, Favors and Services (ETH-1219). Local officials may accept and retain: (a) food, drink, lodging, items and services that are unrelated to their public service and could not reasonably be expected to influence official’s vote, official actions or judgment, nor reasonably be considered a reward for any official action or inaction; b) payment or reimbursement for costs relating to their work as public officials; and c) mere toke ns and items or services of only nominal, insignificant or trivial value. Ethics 1219 further provides that a local official should not accept or retain: (a) any item or service, including food, drink, and travel of more than nominal value that is offered because of their public position; (b) any item or service that could reasonably be expected to influence their vote, official actions or judgment; (c) any item or service that could be reasonably be considered a reward for official action or inaction; and (d) discounted transportation, traveling accommodations or communication services for which the supplier would normally charge. 4. Nepotism (ETH-1233) (this applies to state officials but may be of interest to local officials). 5. Disposition and Reporting of Gifts (ETH-1235). 6. Mitigating Conflicting Interests: Private Interest vs. Public Responsibility (ETH-1240). Ethics guideline 1240 states that an official may participate in actions of their municipality even though the action may affect the official, a member of the official’s family, or an organization with which the official is associated, as long as: (a) the action affects a class of similarly-situated interests; (b) the interest of the official, an immediate family member, or an organization with which the official is associated is not significant when compared to other members of the class; and (c) the action’s effect on the interests of the official, an Page 17 of 21 immediate family member or an organization with which the official is associated is not significantly greater or less when compared to other members of the class. 7. Letters of Reference (ETH-1244). 8. Seminars & Conferences (ETH 1222). This guideline is aimed at state public officials but is good advice. Generally, officials attending seminars and conferences may accept the meals and refreshments provided or approved by the event's organizer and approved by the local governmental unit. An official should generally not accept food, drink or entertainment offered outside of the conference or activities at hospitality suites, receptions or similar activities. III. PRIVATE INTERESTS IN PUBLIC CONTRACTS (Section 946.13, Stats.) A. General Prohibition. To protect against self dealing by public officials, sec. 946.13, Stats., generally prohibits municipal officials from having a private financial interest in a public contract. Thus, local governing body members are generally prohibited from entering into a contract for goods, services, construction or employment with the municipality. 1. Prohibition Against Official Action. A public official may not participate in the making of a contract in his or her official capacity if the official has a direct or indirect financial interest in the contract. Sec. 946.13(1)(b). Since this is a prohibition on official action, abstaining from voting on the contract will prevent violation. 2. Prohibition Against Private Action. A public official may not in his or her private capacity negotiate or bid for or enter into a contract in which the public official has a direct or indirect financial interest if the official is "authorized or required by law to participate in his capacity as such officer or employee in the making of that contract." Sec. 946.13(l)(a). This latter provision is a prohibition on private action and a public official cannot avoid violating it merely by abstaining from voting because all that is necessary for a violation to occur is that the official be authorized to vote on or exercise discretion with regard to a contract in which the official has a private financial interest and the official has negotiated, bid for, or entered into the contract. 3. Exceptions: a. $15,000. Contracts in which receipts and disbursements do not, in the aggregate, exceed $15,000 in any one year. This means that a municipal governing body member can enter into a total of $15,000 in business with the municipality in any calendar year. b. Bankers. Bankers who receive less than $10,000 per year for serving on the city council or village board are exempted, unless the banker’s compensation is directly dependent on procuring public business. Page 18 of 21 c. Attorneys. Partners in a law firm that serves as legal counsel to the municipality who receive less than $10,000 per year for serving on the city council or village board are exempted, unless the individual has an interest in the law firm greater than 2% of its net profit or loss; the individual participates in the making of a contract between the municipality and the law firm; or the individual's compensation from the law firm is directly dependent on procuring public business. d. 2% of stock. There is an exception from sub. (l)(b), the prohibition on official action, for persons who own no more than 2% of the stock of the corporation involved. 4. Penalty: Violation of the statute is a Class I felony and subjects the person to a fine of not more than $10,000, imprisonment for not more than 3 years and 6 months, or both. IV. INCOMPATIBILITY DOCTRINE. A. Common law Prohibition. The same person cannot hold two offices or an office and a position where, from a public policy perspective, it is improper for one person to discharge the duties of both posts. The Wisconsin Court of Appeals has held that serving in an office and a position, where one post is superior to the other, is improper from a public policy perspective. For example, in Otradovec v. City of Green Bay, 118 Wis. 2d 393 (Ct. App. 1984), the court held that a common council member could not work as an assistant appraiser in the city assessor's office. 1. Result. If a second office is taken that is incompatible with an existing office, the first office is vacated. In the case of office/position incompatibility, the outcome is unclear – person runs risk of losing first post, but court might allow choice. 2. General Rule of Thumb: Municipal governing body members may not hold other municipal offices or positions, unless specifically authorized by statute. This is because the governing body exercises control over such matters as the salaries, duties, and removal or discipline of most other municipal officers and employees. 3. Statutory Exceptions. a. Elected city, village and town officers can also serve as volunteer firefighters, EMTs or first responders when annual compensation from one or more of those positions, including fringe benefits, does not exceed $25,000 if the municipality has a population of 5,000 or less or $15,000 if the municipality has a population greater than 5,000. Sec. 66.0501(4). Wis. Stat. § 66.0501(4). b. Governing body members can serve on local boards and commissions if they receive no compensation other than a per diem and other board/commis sion members also receive the per diem. Wis. Stat. § 66.0501(2). c. Village trustees may be paid an hourly wage for serving as an employee if wages do not exceed $15,000 each year. Amounts may be paid in addition to compensation Page 19 of 21 for serving as trustee or as volunteer firefighter, emergency medical services practitioner, or emergency medical responder. Wis. Stat. § 61.327. d. Municipal governing body members may serve as county board supervisor. Wis. Stat. § 59.10(4). Related Statutory Provisions. 1. Section 66.0501(2) generally prohibits governing body members from taking municipal jobs. Under the statute: a. Governing body members are prohibited, during the term for which the member is elected, from taking new municipal jobs created during their term o f office even if they resign. b. A governing body member may be appointed to an office or position which was not created during the member's term in office as long as the member resigns first. c. Governing body members may run at any time for new or existing elective office, but the compatibility doctrine applies if elected and the official would be required to choose between the two offices. Individuals may run for two elected local offices at the same time. Sec. 8.03(2m). d. Governing body members may be appointed to serve on local boards and commissions (e.g., library board and plan commission) where no additional remuneration is paid to such officers except that such officers may be paid a per diem if other members of the board or commission are paid a per diem. 2. Section 59.10(4), Stats., provides that municipal governing body members may serve as county board supervisors. V. OTHER STATUTORY PROHIBITIONS A. Misconduct in Office. Section 946.12 is a criminal statute that prohibits public officers and employees from intentionally performing, or refusing to perform, certain acts. A violation of sec. 946.12 is punishable by up to two years in prison, a fine of up to $10,000, or both. 1. Section 946.12(1) prohibits a public official from intentionally failin g or refusing to perform a “ known mandatory, nondiscretionary, ministerial duty of his office or employment within the time or in the manner required by law.” 2. Section 946.12(2) prohibits a public official from doing an act which he or she knows is forbidden by law to do in an official capacity. 3. Section 946.12(3) provides that a public official may not, by an act of commission or omission, exercise a discretionary power in a manner inconsistent with the duties of office Page 20 of 21 or the rights of others, with an int ent to obtain a dishonest advantage for himself or another. B. Bribery. Section 946.10(2) prohibits public officials from taking bribes. Section 12.11 prohibits public officials from promising an official appointment or anything of value to secure votes. C. Sale to Employees Prohibited. No municipal department or member of a municipal governing body may sell or procure for sale any municipal article, material or product to city or village employee; except meals, public services and special equipment necessary to protect the employee’ s safety and health. Sec. 175.10. This statute is designed to prohibit governmental acquisition of products for resale to government employees. VI. A FINAL WORD Ordinances and Common Law Rules Relating to Ethics. This outline focuses on state statutes that establish minimum standards of ethical conduct for public officials. These laws provide a good starting point for local officials seeking to assure themselves that they are acting appropriately. However, municipal officials should be mindful of other relevant laws governing ethical issues. These include ordinances, local rules of procedure and the common law (i.e., published court decisions). For example, the W isconsin Supreme Court has held that members of a legislative body or municipal board are disqualified to vote on propositions in which they have a direct pecuniary interest adverse to the municipality. Board of Supervisors of Oconto County v. Hall, 47 Wis. 208 (1879). Additionally, many municipalities have adopted Robert's Rules of Order. (Newly Revised, 10 th ed) as their local rules of procedure. Section 4 5 of Robert's provides at p. 394: “No member should vote on a question in which he has a direct pe rsonal or pecuniary interest not common to other members of the organization.” (Note: There are several editions of Robert’s Rules of Order and so it is important to know which edition your municipality is using.) Page 21 of 21