Peshtigo Considers Financing Options For Multiple Projects Big changes are underway in Peshtigo, and it will take some big money to pay for them. After some discussion on the complexity of all the financing involved, City Council and Mayor Al Krizenesky agreed at the regular monthly Council meeting Wednesday, June 6 that a joint meeting will be scheduled soon between the Council’s Finance and Sewer and Water committees, or perhaps the entire City Council, with an auditor on hand to discuss financing options.
Projects include a major overhaul of the city’s wastewater treatment plant; storm sewer and other drainage work in the Industrial Park; reconstruction of French Street, Oconto Ave. and related utility upgrades that are currently underway in the downtown area; downtown beautification projects; reconstruction of the Peshtigo River Bridge being done under the auspices of the Wisconsin Department of Transportation starting Monday, June 11, and improvements to Badger and Riverfront parks.
Wisconsin Public Service is doing some repair work on its dam in conjunction with the Peshtigo River drawdown for bridge work, and it appears the long sought dredging on the river and Trout Creek may also become a reality if a grant being sought from the Great Lakes Restoration Initiative program is approved.
Alderman Mike Behnke was authorized to work on the dredging grant with Greg Cleereman, Charles Druckery and other personnel from the Marinette County Land and Water Conservation Department, and council voted unanimously to accept the grant if their efforts are successful. If the grant is approved the dredging will be fully paid for by the Great Lakes Restoration Grant program. Behnke said the sludge is so deep that as much as six feet of river and/or creek bottom may need to be removed in some places.
Parks and Recreation Committee Chair Cathi Malke expressed appreciation for the work Druckery and Cleereman have done on behalf of the city’s quest for the grant. She said they were out in all kinds of weather last winter collecting information for the grant application.
Correspondence for the council meeting included a letter from Wisconsin DNR acknowledging receipt of the application for the related permit to remove materials from the bed of the Peshtigo River and Trout Creek, and advising Behnke to contact the city zoning office to determine if a local permit is also required. Robert Rosenberger, the DNR’s Water Management Specialist in the local office, was identified as the DNR’s contact person for the project. The DNR sent the city’s information on to the Army Corps of Engineers to see if they too will need to become involved.
As one of the first items in a long and sometimes difficult meeting, Mayor Krizenesky had scheduled discussion and possible action on borrowing from local banks for temporary financing of TIF projects and the wastewater treatment plant and sewer utility work.
“Are we at the point of needing to borrow to meet our obligations?” he asked.
Clerk/Treasurer Mary Ann Wills said she could not answer that.
Alderman Fred Meintz, who chairs the Water and Sewer Committee, said bids have been let for work on the $1.677 million Wastewater Treatment Plant project and work could start later this month. He said they should be able to eventually get state loans that possibly would include forgiveness of 20 percent of the project cost, but interim financing will almost certainly be needed, since the sewer utility is already running in the red and costs are being subsidized by the city until the new rates can go into effect.
Krizenesky said he had contacted some local lenders and they are all willing to work with the city. In written proposals Peshtigo National, Farmers and Merchants, Wells Fargo and Citizens Bank had all offered to loan the city between $1.677 million and $1.957 million, subject to various interest rates and repayment terms.
TIF funds, with $1.1 million in CDs coming due in August and September will be used to pay at least a portion of improvement projects within the TIF District. Meintz pointed out that TIF money, including amounts to be collected during the remaining five years left of the TIF District, must be spent or at least obligated by the end of August, so borrowing for those projects will be necessary.
“In regard to the money we may need to borrow, who can answer that question if you can’t?” Alderman Malke asked Wills.
Wills said the city has enough money in reserve to pay the current bills. She reported at the last Finance Committee meeting that she had cashed in one of the city’s CDs, and added, “As Mr. Meintz said, the sewer is already running in the red and the city is carrying it.” She added there is money in the UDAG accounts, and there has been talk of going to UDAG for a grant, which has happened in the past.
Money in UDAG accounts came to the city through economic development loans from the federal government for various business expansions and is replenished and expanded as loans are repaid to the city, with interest. Purpose of the fund is to aid economic development by encouraging and helping finance business growth.
Wills said a loan can be obtained through the state’s Safe Drinking Water Fund at 2.5 percent interest, but that loan would be locked in for 20 years and cannot be prepaid.
So far, no UDAG money has been used toward the downtown improvement projects, according to Tom Gryzwa, who was elected chair of the UDAG Committee at their meeting on Tuesday, May 15.
Financial reports at the May 15 UDAG meeting showed the UDAG fund had a cash balance of $1,115,528.77 as of May 10, plus $1,100,000 in three certificates of deposit, for total balance of $2,215,528.77.
The Certificates of Deposit will mature in August and September of this year. They bear minimal interest rates of 1 percent, 1.1 percent and .75 percent.
The committee also administers the Wisconsin Development Fund, which has loans outstanding totaling $372,948.48. Loan payments are mostly current or nearly current.
UDAG has $2,548,094 in outstanding loans on the books, including two loans to the city, one for $342,082.78 and one for $54,163.75. Both are interest free for four years. That total also includes more than a million dollars owed by Aacer Flooring, Inc. and Aacer (GT Realty), on four loans that were last current in December of 2007 and January of 2008. Discussion at prior meetings has been that some money may be recovered, but the loans basically are uncollectable.
Finance Committee Chair Mary Lock said she has asked to be on the UDAG Committee’s agenda for their next meeting to ask for a $1 million grant to lessen the burden on the taxpayers.
Krizenesky asked about the availability of TIF money.
City Engineer George Cowell reminded them the street projects are underway and the bills are coming in, bids are being sought for stormwater abatement on the east side, and design work on industrial park storm sewers will start in July.
TIF money is being used as a 50 percent match for work on Riverfront Park, including fishing piers and the new gazebo. Meintz repeated his caution that the TIF money all must be spent or under contract by the end of August, but the TIF District will be collecting money for the next five years, and that too must be spent. “We’ll need to borrow $3.5 million,” Meintz declared. “The whole thing has to be spent out, and most will be paid out by the end of the year.”
He said UDAG funds are a lot different, and objected to the proposal to use UDAG money to pay for wastewater treatment plant improvements. He said BPM, Inc. pays 65 percent of the operating costs for the wastewater treatment plant and uses 65 percent of its capacity. Renovating the plant would cost far less if the capacity required for the paper mill were not needed. “Why should the city use UDAG funds for that project? Why should the city pay two thirds of the cost for one industry and only one third for the citizens and all the other industries?” He felt using UDAG money for the water utility is acceptable, since BPM doesn’t buy water from the city’s utility.
Also, Meintz cautioned, “If you use UDAG money you won’t get the grant, and the 20 percent will not be forgiven!”
“We may lose some of our energy grant also,” Krizenesky added. That grant will be for $60,000 to $65,000.
Behnke asked if they were negotiating with the mill regarding paying a portion of the capital expenses for the wastewater treatment plant improvements, and Meintz said that is on the agenda for their next committee meeting, which was to be held on Monday, June 11. He added they have had ongoing discussions and said the mill people are wonderful to work with. Malke wondered if the mill is eligible for grants, and Meintz expressed doubt that any opportunities have been missed.
The Water and Sewer Utility Committee also is planning to contract with Kaempfer & Associates for advice on financing options and increases in sanitary sewer rates since they are more knowledgeable than the city auditor on all the costs associated with the utility and the reasons for those costs.
Later in the meeting Council approved revising the Kaempfer Engineering contract to bring the new total price to $285,000, and approved a $14,000 electrical panel upgrade for the plant.
“Some time ago we talked about having our auditor come in and talk to us about funding options,” Meintz reminded the Council, referring to the city’s overall financing needs. He reminded everyone they were also talking about refinancing two other loans to take advantage of today’s low interest rates.
Wills suggested having the auditor attend a joint meeting of the Sewer and Water and Finance committees. Everyone seemed to agree that is necessary, and Krizenesky promised a meeting will be set up in the near future.
Sharon Anderson, manager of Badger Credit Union was the only member of the public to speak during public comment time at the start of the meeting. She said she was there in response to Alderman Malke’s request for consideration of street banners on light poles along streets in the business district east of the river as well as in the downtown area on the west. “I’m just here to listen,” Anderson said, but added, “as a business owner, usually the bridge divides the city and the east side gets left out.”
Later in the meeting Malke said she had been disappointed by lack of support her Streets and Drainage Committee had shown in the banners, and after more discussion Council unanimously approved a motion authorizing her to look further into prices for the banners, with an eye to including them in next year’s budget. Alderman Tim Colburn said he would like to see something done for the east side of the city, “and I don’t even live there.” Meintz said his main objection was that the issue should have come up at budget time, not mid-year, when the money is already allocated.
City Engineer Cowell reported on progress of the downtown street and utility construction. He said storm sewer and curbs were mostly in on Ellis and Oconto avenues, and by the end of the week most of the utility work from Emery to the Dairy Queen would be pretty much done. About a week and a half worth of work remained on the intersection, and utility work on French Street was about half done.
The alley parallel to Oconto Ave. was paved to Green Street, giving back door access to businesses there.
He had attended a pre-construction meeting for bridge work earlier that day with the DOT in Green Bay. The bridge replacement is a state project but is being coordinated with the city. Krizenesky, Malke and Behnke were also at the DOT offices for the meeting.
Bids for stormwater control in the industrial park will be taken in late June, Cowell said, and they are working with Cedar Corporation on that project.
Lock asked about installation of a power pole by her office, and was told that Lunde Construction, contractors for the bridge project, has rented the building there for their office while the job is in progress. Power had come from BPM, Inc., which owns the building, but now will be available through regular sources.
Alderman Tom Gryzwa was impressed with how little business disruption has been caused by the downtown street reconstruction. “I’m amazed at how they can work and still give access to businesses,” he declared. “They’re doing a good job!”
Behnke noted the existing light poles on the bridge will be removed in one piece by Hoida and will be stored for future use elsewhere in the city.
Malke thanked BPM, Inc. for allowing use of the old railroad bridge as a foot path for anyone needing to cross the river while the bridge is out. It has been prepared to provide safe passage and will be open for pedestrians, bicyclists, etc. Motorized vehicles are now allowed except perhaps handicapped scooters and wheelchairs, should anyone want to use them there.
On recommendation of the Streets and Drainage Committee, Council approved a change order for $7,382 for the Ellis Ave., reconstruction and approved an initial payment of $85,626 to Jackie Foster, Inc. toward the $169,803 contract.
They also approved payment of $143,840 to DeGroot, Inc. toward the $1,384 million French Street reconstruction and utility contract.
A major discussion at the meeting centered on the possibility of making the Drees Community Center, rather than the Municipal Building, the polling site for elections in the city, but the consensus seemed to be that it is too late to change things for this year, and once the downtown construction is done there may be no need to change it, since at least a portion of the parking problems will have been eliminated. No action was taken.
Advantages listed for the Drees Center included better parking and ease of traffic flow; more space inside the building, less congestion and better flow of voter traffic; additional lighting, storage space available and handicap accessible.
Disadvantages were need to transport voting machines and supplies, use of fax and copy machines, the city clerk and deputy clerk would not be onsite, and additional poll workers might be needed.
Advantages listed for keeping the City Hall as the polling place include keeping the voting machines stationary, voting supplies are readily accessible, the city clerk, deputy clerk and clerical staff are on site, office machines and computers are available, and the building is served by an emergency generator. Like the Drees Center, it is handicap accessible.
Disadvantages listed were limited parking with obstructions, congested hallways, location of exit and entry doorways, and traffic flow.
Feeling was that some of the parking problems will be alleviated once the work on French Street is done, new traffic patterns are established, and the new city parking lot on the triangle is completed.
Krizenesky suggested the Buildings and Grounds Committee should discuss the issue. He said he had brought up the idea because of requests from several city residents. Chief Election Inspector Jenny Hipke had drawn up the list of pros and cons at his request.
Hipke commended Wills and the city hall workers for their work on the last election. There were over 1,000 voters, she said, “and I did not hear one complaint about the difficulty of getting here.” She agreed, however, “We can always evaluate and look at what we can do better.” She said they need at least 60 days of advance notice before moving a polling site, so felt it will be too late for this year. She also worried about the security of voting machines at the Drees Center.
Lock asked how important it is that police are in the Municipal Building, but would not be at the Drees Center.
Hipke said she does not know how often officers are onsite in any case. The voting machines are easy to transport and there is a lockable room available at the Drees Center, “but here we know they’re secure.” She said also, at City Hall, city personnel including the clerk are available to fill in if needed.
Wills said the City of Marinette has three polling places, none of them in City Hall because there isn’t room there. However, she said, elections are being watched more and more closely and security is becoming a really big issue. She said with onsite voter registration and the possibility of people being turned away, they need to be prepared for potential problems. She said for the last election they had advised police that they were expecting people and problems and asked them to be on alert.
No formal action was taken.
Fire Chief Steve Anderson advised the Council that he and Town of Peshtigo Fire Chief Mike Folgert will work out a protocol governing co-response with the town on structure fires on the west side of the Peshtigo River when the bridge is out, and the town will co-respond should there be a structure fire in the city on the east side. With the agreement, the mutual response would be automatic, rather than in response to a request for assistance.
After some discussion, and with a few reservations, Council agreed that Glenn Dumke can have a 2005 Mack truck removed as collateral on his UDAG loan and use other equipment he owns as collateral instead.
Krizenesky, urging Council to approve the transaction, said Dumke had assured him the items he would add exceed the value of the dump truck, but the truck is sellable and he almost never uses it. He does use the equipment that would be mortgaged instead. He plans to use the proceeds, if he sells the truck, to pay a bill he owes the city for a sewer extension to his property and use the remaining money for operating capital.
“I think it’s a worthy thing to do,” Krizenesky declared.
City Attorney David Spangenberg assured Council that the proposal is legal, as long as papers are drawn correctly.
Meintz asked for confirmation that the equipment the being used as collateral in place of the truck is indeed worth more, and that there are no other liens on it.
“My slasher alone is worth more than that truck,” Dumke declared, adding he is not going out of the logging business.
Dumke currently has an agreement by which he pays only the interest on his UDAG loan for one year.
Council finally voted unanimously, on motion by Behnke, seconded by Malke, to allow the trade-off in collateral, provided Dumke brings the City Clerk appraisal report showing the value of the equipment is indeed greater than the value of the truck and documents showing there are no liens on the equipment. The motion included a provision that if the truck is sold Dumke will use part of the proceeds to pay off the loan for connecting his business to the city sewer system.
The items to be added are a 1998 hood slasher and saw table, a 1986 Hatchi hydraulic excavator, and a 1985 Komatsou Dozer with a 3-way blade.
“I don’t want to borrow any more money, but right now I could use some working capital,” Dumke told the Council. He said a buyer had been interested in the truck but he couldn’t sell it because of the UDAG lien. That deal has fallen through, but he is hopeful there may be another buyer.
“We’re rooting for you,” Krizenesky told him. He added that a spokesman from Aacer, when donating lumber for the footbridge that will be used while the Old 41 bridge is out, told him he is extremely glad to have Dumke’s sawmill available nearby.
Gryzwa, who was recently elected UDAG chairman, asked Dumke to get them an appraisal of all his equipment. He suggested if they have that information on file they can switch collateral again if necessary without going through the process they had to use this time. The next UDAG meeting is set for Monday, July 16, and Dumke indicated getting the appraisal done by then will not be a problem.
During committee reports later in the meeting, Council approved a recommendation to place a judgment on property of Shane and Kathleen Walters for their Wisconsin Development Fund loan of $3,614.14 plus interest, and adjust the H&H Transportation loan of $22,397.88 plus interest to allow payments of $300 a month. Council was informed H&H had made payments for April and May.
By five to one vote, with Alderman Colburn abstaining, Council also approved a UDAG Committee recommendation to obtain a judgment on Oestreich and garnish their wages. They owe $26,407.97 plus interest at 6 percent, and are current on payments only through December of 2008.
Spangenberg said the action against Oestreich will be a 2-step process, first getting the judgment and then garnishing the wages. Krizenesky said there had been talk about them going to Tennessee.
Council also approved a UDAG Committee recommendation for an amendment to their manual that will allow them to go outside their committee membership to add a CPA or an accountant to serve as a financial advisor if necessary. The person, if added, would be a non-voting member of the committee.
The person selected should have the background, training and ability to assist the UDAG Loan Fund Committee by analyzing loan applicant’s financial statements, profit and loss statements, proformas, individual and corporate tax returns, cash flow projections, debt service coverage and any other information to assist in making an informed loan decision.
Meintz, who is also a member of the UDAG Committee, explained this is not a mandate, but rather is “another tool we can use.” The advisor need not be a resident of Peshtigo. Salary, if any, is to be paid from UDAG funds and be negotiated by the UDAG Administrator and approved by City Council.
In other business:
*Following up on a suggestion from Krizenesky, Behnke is to draw up a resolution saluting track star Brad Neumann on taking first place at State in the 100-meter . “He really is the fastest kid in the state,” Krizenesky declared. “That’s quite an accomplishment.” Since the congratulatory message was not on the agenda, official action will not be taken until the next Council meeting.
*In response to a request from Dale Lange, President of the Peshtigo Economic Development Corporation, Council authorized the group to place a sign on city owned property located east of the Old Peshtigo Road between Business 41 and the Frontage Road directing traffic to businesses located in the industrial park, and agreed to waive the $25 sign permit fee.
*Council approved a certified survey map prepared by Surveyor Robert L. Johnson on behalf of Steven Sutek and Charlotte Duran for property at 520 Right of Way Road.
*Fire Chief Anderson reported that Richard Hutchinson has resigned as a member of the Peshtigo Fire Department effective on May 26, because he had taken another job and moved out of the area.
* Cowell was authorized to purchase a paint sprayer from Sherwin Industries for $3,497.
*Council approved the Streets and Drainage Committee recommendations on colors for paving bricks and planters in connection with the downtown beautification project.
*All liquor license renewal applications were approved, as were annual renewals for bartender and tobacco sale licenses.
*There were 10 building permits issued since the last Council meeting.
*Council approved the $50,935 contract with Ryan for construction of the gazebo in Riverfront Park, on a motion that left the door open for negotiating a less costly solution to red pine wraps for the beams that will hold the structure up.
*Benches were approved for the gazebo area as recommended by the Parks and Recreation Committee despite a caution from Lock that the backless benches they selected will hold a special attraction for skateboarders.
*Malke thanked Tom Parthie for donating black dirt for the area around the new gazebo, which will be put in before the river goes down.
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| 05-02-2013 | Obituaries |
Bernard L. Courchaine
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| 05-02-2013 | Obituaries |
David Campbell
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| 05-02-2013 | Obituaries |
Roy Bylund
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| 05-02-2013 | Obituaries |
Dale P. Bundy
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| 05-02-2013 | Obituaries |
Gerda M. Barrick
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| 05-02-2013 | Obituaries |
Antoinette A. Bacon
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| 05-02-2013 | Obituaries |
Bonnie R. Artz
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| 05-02-2013 | Front Page |
Peshtigo Woman Murdered
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| 05-02-2013 | Front Page |
Crivitz High School Ranks 22 in Survey
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| 05-02-2013 | Front Page |
Heyer Changes Plea in Murder
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| 05-02-2013 | Front Page |
City Parks, Recreation Director Marquardt Takes County Job
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| 05-02-2013 | Front Page |
Public Hearing On 4 Ordinances Precedes May 7 Council Meet
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| 05-02-2013 | Perspectives |
From our readers
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| 05-02-2013 | Perspectives |
Tales from the old-timer
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| 05-02-2013 | Perspectives |
Country Cousin
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| 05-02-2013 | Sports |
Oconto Falls Girls Dominate Invite
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| 05-02-2013 | Sports |
Suring Cruises To Track Sweep; Cops 22 1st Place Marks
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| 05-02-2013 | Sports |
Bulldog Booster Bash On May 4
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| 05-02-2013 | Sports |
Coleman Improves To 6-0
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| 05-02-2013 | News |
Walking Club To Paddle on River
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| 05-02-2013 | News |
Pound Senior Club Meeting is May 6
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| 05-02-2013 | Community - Wausaukee |
Car, Lightning Cause Outages
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| 05-02-2013 | Community - Wausaukee |
SC Fire, Rescue Auxiliary May 13
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| 05-02-2013 | Community - Wausaukee |
Ladies Luncheon at Assembly Church
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| 05-02-2013 | Community - Wausaukee |
Eight Wausaukee Music Students Advance to State
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| 05-02-2013 | Community - Crivitz |
Crivitz High School 2013 Graduation Ceremony May 18
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| 05-02-2013 | Community - Crivitz |
OWI Task Force Town of Stephenson
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| 05-02-2013 | Community - Crivitz |
List Theme for July 4th Parade
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| 05-02-2013 | Community - Crivitz |
CYI Summer Youth Programs
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| 05-02-2013 | Community - Coleman |
Smarter Than 5th Grader at Coleman
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| 05-02-2013 | Community - Coleman |
Pound Senior Club Meeting is May 6
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| 05-01-2013 | Front Page |
Suspect Will Face Homicide Charges In Marinette County
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| 04-25-2013 | Obituaries |
Roger C. Winter
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| 04-25-2013 | Obituaries |
Alfred W. Weissgerber
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| 04-25-2013 | Obituaries |
Josephine H. VandenBush
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| 04-25-2013 | Obituaries |
Julius Torzala
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| 04-25-2013 | Obituaries |
Anna Szkolny
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| 04-25-2013 | Obituaries |
Sylvin J. Steffes
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Peshtigo Times
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