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| | 4. | | Bronzeville RFPs, listings, projects, programs, initiatives, events, activities or updates.
Minutes note: a. Anti displacement tax fund and neighborhood preference policy
Individuals appearing:
Maria Prioletta, Dept. of City Development
Sam Leichtling, Dept. of City Development
Ms. Prioletta gave a PowerPoint overview on the anti displacement tax fund as follows:
The tax fund program is one anti displacement tool, through the leadership of Ald. Milele Coggs and others, that is being developed to provide a resource for homeowners in targeted Milwaukee neighborhoods to help pay for increases in their property tax bills, so they will not be displaced due to rising property values and higher property taxes. Helping to shape the program were the review of the Atlanta Westside Future Fund Anti displacement Tax Fund, consultation with the City Attorney and City Assessor offices, and review of assessment trends for all assessment neighborhoods in the City since 1998. The City of Atlanta is subject to the same uniformity clause that Wisconsin has. While City money cannot be used for tax payments to program participants, the City could contribute to funding for program administration. There is $50,000 for program administration from the Community Development Grant Administration office.
The proposed framework includes program geography, guidelines, eligibility criteria, range of estimated costs, recommendations for program administration, and funding options. The geography/target areas selected are based on the following criteria: identified in the City's Anti displacement Plan as demonstrating indicators reflecting a risk for displacement, greater downtown neighborhoods nearby significant market rate development, and experienced property value increases more than 10 percent above the City average over the past 5 years. Target neighborhoods include Bronzeville/Brewers Hill and Walker's Point.
Basic eligibility criteria are the following: must have been owner occupants in program target area for at least five years prior to program start date, mortgage and real estate taxes must be current, and annual household income equal to or less than City of Milwaukee median income. A "Legacy Provision" is included for properties inherited from family members. There is allowance for one time payments for household with incomes between 100 percent and 125 percent of City of Milwaukee median income in the case of significant property tax increases.
Annual assistance under the program is equal to increase in annual tax payment due to increase in assessed value of property. The program will pay the difference between a participating homeowner's annual tax payment that has increased from the year prior. Program assistance may be made for 20 years subject to availability of funding, as long as the homeowner continues to occupy the property and meet eligibility criteria.
Estimated program costs projected are based on the projected number of participants in target geography (estimated 258 eligible owner occupants), review of average assessments and assessment increases from 2014 2019, and assumed 90 percent participation by eligible homeowners in year one. A $3 million fund is estimated to be sufficient to provide assistance to all eligible homeowners over a 20 year program lifespan with annual significant value increases above City averages. Historic value increases would exhaust a fund of this size in roughly 15 years. The average participant over the program would receive assistance of $12,200 $16,900 over 20 years.
A third party program administrator is recommended to administer the program with the program administrator's duties to include the following: outreach to eligible homeowners on the ground; reviewing applications from participants, verifying qualifications, calculating annual program payments, remitting payments to the City Treasurer's office; verifying ongoing compliance and qualifications; and assist applicants to qualify for the program.
Future program requirements include possible further refinements, as necessary, to be consistent with the goals of individual funders and input from program partners; ongoing review of future development patterns and neighborhood changes that would suggest future expansion (subject to the availability of additional funding); annual evaluation of program; and the seeking of additional funding sources. There is urgency to launch the program. The program has been presented to the Common Council. They are working with Milwaukee United on fundraising. Specific timeline for the program is still being explored.
Members said that there should be consideration in the eligibility criteria to attract or retain historical families that have had an interruption in homeownership, especially for Brewers Hill, and that fundraising for the program is an ongoing collaborative effort among all partners.
Mr. Leichtling gave a PowerPoint overview on the anti displacement neighborhood preference policy as follows:
The policy, through the leadership of Ald. Coggs and others, is one of many anti displacement tools. The policy specifically serves to address the anti displacement study recommendations of preserving existing affordable rental housing, protecting tenants, and prioritizing affordable and mixed income housing in neighborhoods at risk of displacement. Specific policy strategies include utilizing TIF and other City resources to create new affordable and mixed income housing for existing residents and pursuing a preference policy for existing residents at risk of displacement. Policy details include: designate 20 percent of affordable housing units in eligible developments receiving city assistance for prioritization of existing neighborhood (by zip code) tenant residents; and preference at initial lease up and throughout period of affordability.
The policy was developed with Fair Housing and City Attorney review. Statistical testing was conducted to ensure the proposed policy has no disparate impact based on race or national origin. Policy outreach involved inquisition with the City of San Francisco (they have the most similar policy), local developers, and the Milwaukee Metropolitan Fair Housing Council. The proposed geography and percentage of designated units was developed by testing. 20 percent of affordable housing units for developments was found to be the highest feasible percentage for the policy and for developments to not risk failure. The geography zip code areas of the policy include 53204, 53208, 53212, and 53233. Zip codes containing census tracts were identified by the anti displacement plan. The zip codes will not result in a disparate impact based on race.
The next steps include developing program implementation regulations by DCD, CDGA, and the City Attorney office; including requirements within development agreements on covered projects; installing a three year pilot implementation phase; and report back to the advisory committee and Common Council on the pilot. The Common Council recently approved the policy.
Members inquired about considering and making property management accountable for tenant sustainability and concerns from developers.
Ms. Prioletta replied. There can be continued conversations with developers to hold their property management firms accountable. Ultimately, the developers have the responsibility over their properties. Engaged developers have thus far expressed that the policy is a great idea. They are doing implementation planning and will do an early outreach campaign.
b. Bronzeville Week
This item was held and not discussed.
c. DCD Commercial Corridor grants
Individuals appearing:
Terence Acquah, Dept. of City Development
Kermiath McClendon, Dept. of City Development
Mr. McClendon and Acquah presented to the committee for their review a $25,000 whitebox grant application made by Cool Beauty for their second level at 2241 N. MLK Dr. with the total amount of whitebox expenses at $62,000. The property owner is Seon Joo So. The proposed business (Family LLC) for the second level is for a shared office space providing flexible workspace, meeting rooms, event space, and top class business resources to inspire a new wave of small businesses and diverse professionals. The whitebox grant would allow for an open floor plan with flexible seating arrangements, adequate meeting and group work space, natural light, kitchenette, and all typical business services. There would be preferred access to public transportation, sufficient parking/bike racks, and accessibility for pedestrians and bikers. The business owner has signed a letter of intent. No lease agreement has been finalized as details are still being negotiated. There would be membership fees for the use of the second level. The project was held in July due to a second quote from a non licensed and bonded contractor. The project will go before an internal grant committee in August should a new scope of work be submitted. The contractor of preference is Cool Construction, Inc., which is owned by the property owner. Concerns on this project include a similar service provided by the relocation of the African American Chamber of Commerce on King Drive and the lack of experience between the property owner and contractor at another location.
Members were not in support of the grant application due to the lack of community collaboration, cooperation, and engagement on the project; saturation of incubation spaces in the area; issue with the business sign previously; lack of cultural inclusion in the area; lack of employment opportunity and community benefit; and membership fees.
Member Vernon moved to recommend denial, seconded by member Hall, to the DCD Commercial Corridor Team of the $25,000 white box grant application for Seon Joo So (Cool Beauty) at 2241 N. MLK Drive based on the opposition as discussed. There was no objection.
Meeting recessed at 10:15 a.m. and reconvened at 10:18 a.m.
d. Bronzeville website
Individuals appearing:
Terence Acquah, Dept. of City Development
Gisela Ortega, Dept. of City Development
Ms. Ortega and Mr. Acquah gave an update presentation on the new Bronzeville website. Suggestions from the committee have been incorporated. The new website was developed with assistance from the Information and Technology Management Division and input from Ald. Milele Coggs and committee. The new website will be launched shortly with the website address of http://city.milwaukee.gov/Bronzeville to replace the old one. The website will be an ongoing work in progress, and feedback will continually be sought.
Important webpages to mention are as follows:
The Home page had its main photos changed and highlights sign up, enotifcation, Visit Bronzeville, Live in Bronzeville, and Bronzeville Week. The VisitMKE video was removed. The logo is from Bronzeville Week. The Visit Bronzeville page features a calendar with upcoming events information. There will be ongoing effort to make the calendar and event information more interactive. The History page remains unchanged with the understanding that the current narrative information there will require an ongoing long term project to enhance it. The About page has information about the advisory committee, brief biographies of committee members, and photos of members. Further information is needed from a few members still. The Photo Gallery page contains pictures for many events that have occurred in the district. More photos are welcomed. The Useful Resources page has contact information such as those of the local alder, business improvement district, and police department. The Things to Do page highlights Bronzeville Week and other events. The News page has been updated with the removal and addition of linkable articles. Suggestions are welcomed to include videos and make the page more interactive. The Area Plans and Studies page has links to the plans and studies. The Real Estate page lists linkable resources and listing opportunities.
Members commented. For the History page, there is need for more historical accuracy, community inclusion, and a suitable design template via key resident interviews, testimony, important written materials, photos, videos, and speakers from important events such as Bronzeville Week. The Milwaukee Urban League could possibly assist in a project to improve the History page. The new website should be shared through enotification.
e. ARCH program
Individual appearing:
Larry Kilmer, Dept. of City Development
Mr. Kilmer gave an update. The program is a loan program for city home ownership requiring a community arts use component. It includes new constructions. There have been zoning use issues with some applicants on the residential sites. The program seems to better fit commercial and mixed use properties. These properties comply with regulations easier, such as ADA. The program is still operating and fielding inquiries. The loan is a 5 year forgivable loan at zero percent interest rate. There is annual inspection with the arts component requirement. Those that do not qualify are assisted and referred to different programs. For applicants that would have less foot traffic, such as those with residential buildings, an alternative program more suitable for them is the Live Work Duplex Program. Further information about the ARCH and other alternative programs are on the City's Home Buyer Assistance Program website.
Members commented. Pictures of successful ARCH program projects should be incorporated on the website. The committee has no jurisdiction on residential projects but would like as much as possible to advice on ARCH housing in Bronzeville.
Mr. Kilmer commented. Perhaps an annual review of the program can be brought to the committee. Frontend review may be difficult due to applicants not having concrete plans, oftentimes; however, perhaps frontend mentorship from the committee would be beneficial.
f. Bronzeville Homeownership Initiative
Individual appearing:
Larry Kilmer, Dept. of City Development
Mr. Kilmer gave an overview. The initiative, through Ald. Coggs' leadership, includes three main programs. First, the Homebuyer Assistance Program offers a forgivable loan up to $25,000, which is $5,000 more than the citywide program, for renovation purposes on a City owned 1 2 unit residential property within the Bronzeville boundaries. Second, the Homeownership Appliance Package Program offers a $2,000 credit towards the purchase of major appliances made for Bronzeville homebuyers. The appliance vendor is to be determined still. Third, the Resident Down Payment Grant Program is a financial incentive for renters and offers existing residents a forgivable grant to make a down payment on a non City owned residential property purchase. A homebuyer is required to live the property for 5 years and complete the City's home buyer counseling. These programs will be linkable to and from the Bronzeville website.
Chair Crump questioned promotion and said to provide information of the initiative to the DCD Real Estate team.
Mr. Kilmer replied that a one page document on the initiative programs is best to be used and that outreach will be done with partners and developers within the area.
g. 7th St. and North Ave. RFP
Individual appearing:
Gisela Ortega, Dept. of City Development
Ms. Ortega said that the RFP for the site is still developing and negotiations are ongoing for the billboard.
Mr. Lee said that the land swap to relocate the billboard from its current location was approved recently by the Common Council.
h. Other
There were no other matters for discussion.
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| | 5. | | Review of criteria, scoring, and evaluaiton rubric relative to committee recommendations.
Minutes note: Chair Crump directed members to consider 3-5 unique criteria, based on the Likert Scale, for the committee to propose for the next meeting. | | | |
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| | 6. | | Announcements.
Minutes note: Member Hall announced the success of the recent Milwaukee Urban League's 100th Anniversary Black and White Ball event and a Milwaukee Urban League conference in Indianapolis. Next year's anniversary ball event is scheduled for June 6, 2020. | | | |
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