GBHA Properties 1, Inc.

AGENDA OF GBHA PROPERTIES 1, INC. THURSDAY, SEPTEMBER 19, 2024, 10:30 AM IMMEDIATELY FOLLOWING GREEN BAY HOUSING AUTHORITY MEETING. City Hall, Room 604 - The Harry Maier Room. Virtual attendance is also available via Zoom. A. Zoom Meeting Information. 1. Join Zoom Meeting Online: https://us02web.zoom.us/j/81434999289?pwd=N0dlMGxWSS85SGswK2lZeGhZZUN0UT09 Or call in by phone: +1 312 626 6799 Meeting ID: 814 3499 9289 Passcode: 483400 If you wish to speak at this public meeting or leave a comment, please fill out the online Comment Form prior to the meeting. More detailed Zoom Instructions can be found online. B. Roll Call. 1. William VandeCastle - Chair, Sandra Popp, Erin Edwards and Stephen Srubas C. Approval of the Agenda. 1. Approval of the agenda for the Thursday, September 19, 2024, meeting of the GBHA Properties 1, Inc. D. Approval of Minutes. 1. Approval of the minutes from the June 20, 2024, meeting of the GBHA Properties, 1 Inc. E. Regular Business. 1. Consideration with possible action to approve the Payment In Lieu of Taxes Agreement between the City of Green Bay and GBHA Properties 1, Inc. F. Adjournment. Agenda of GBHA Properties 1, Inc. September 19, 2024 Page 1  1) THIS MEETING IS RECORDED: THE VIDEO OF THIS MEETING AND MINUTES ARE AVAILABLE ONLINE AT www.greenbaywi.gov 2) ACCESSIBILITY: Any person wishing to attend who requires special accommodation because of a disability, should contact the City Safety Manager at 920-448-3125 at least 48 hours before the scheduled meeting time so that arrangements can be made. 3) QUORUM: Please take notice that a majority or quorum of the Common Council may attend this GBHA Properties 1, Inc. meeting and will constitute a meeting of the Common Council for purposes of discussion and information gathering relative to this agenda. 4) REPRESENTATION: The party requesting the communication, or their representative, should be present at this meeting. Agenda of GBHA Properties 1, Inc. September 19, 2024 Page 2  Report to the GBHA Properties 1, Inc. of the City of Green Bay MEETING DATE PREPARED BY September 19, 2024 Stephanie Schmutzer, Staff AGENDA ITEM # E.1 Consideration with possible action to approve the Payment In Lieu of Taxes Agreement between the City of Green Bay and GBHA Properties 1, Inc. BACKGROUND While our utilize a full range of City services, tax-exempt properties do not contribute to the operation of City government to the same extent that non-exempt properties do. While GBHA Properties 1, Inc. is not obligated to pay property taxes, it is the staff recommendation that the Board acknowledge the local government services our units receive and agree to a voluntary payment, called a Payment In Lieu of Taxes (PILOT). The agreement between the City of Green Bay and GBHA Properties 1, Inc. would use a revenue- based calculation, not the value of the property owned by the Authority. RECOMMENDATION Approve the PILOT agreement FISCAL IMPACT The estimated PILOT amount would be $27,676.00 annually and recalculated at the end of every year. ATTACHMENTS 1. Pilot Agreement - GBHA Properties I Inc 2. Scattered Sites Estimated PILOT 2024 100 North Jefferson Street, Green Bay, Wisconsin 54301-5026 greenbaywi.gov  PILOT AGREEMENT This Agreement entered into this 19th day of September, 2024, by and between GBHA Properties I, Inc., and the City of Green Bay (CITY), a municipal corporation, with an address of 100 N. Jefferson Street Green Bay, WI 54301, and collectively referred to as the (PARTIES): WHEREAS, GBHA Properties I, Inc. owns a Properties see Addendum A described as (PROPERTIES), located in the City of Green Bay; and WHEREAS, the CITY supports the rehabilitation of the PROPERTIES by GBHA Properties I, Inc. to eliminate blight and to ensure the community has a variety of housing choices for low- and moderate-income families; and WHEREAS, GBHA Properties I, Inc. wishes to obtain certain governmental services and benefits from the CITY for GBHA Properties I, Inc. and the PROPERTIES, of the same type and to the same extent as are furnished from time to time, without cost or charge (except by means of property tax) to commercial, multi-unit residential, and single-family residential dwellings and inhabitants of the CITY; and WHEREAS, the PARTIES understand that the PROPERTIES qualifies for real and personal property tax exemption under Wisconsin State Law (Wis. Stats. §70.11(4)); and WHEREAS, GBHA Properties I, Inc. nonetheless recognizes that, notwithstanding property tax exempt status, valuable governmental services and benefits will be provided to GBHA Properties I, Inc., the PROPERTIES and tenants there at and which include, but are not limited to, fire and police protection, street maintenance, garbage and recycling removal, snow removal and other City of Green Bay services; and WHEREAS, GBHA Properties I, Inc. wishes to make payments to the CITY in recognition of those services and benefits. WHEREAS, GBHA Properties I, Inc. and the CITY have each determined that it is in their best interest to enter into this Agreement. NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth, the parties hereto do agree as follows: 1. Whenever used in this Agreement: a. The term “PROPERTIES” shall mean the property listed on Addendum A. b. The term “TAXING BODY” shall mean the State of Wisconsin (“STATE”) or any political subdivision or taxing unit thereof in which the PROPERTIES are situated, and which would have the authority to assess or level real or personal property taxes or to certify such taxes to a taxing  body or public officer to be levied for its use and benefit with respect to the PROPERTIES if it were not exempt from taxation. 2. The CITY and GBHA Properties I, Inc. recognize the tax exempt status of GBHA Properties I, Inc. on the PROPERTIES, from all real and personal property tax under the applicable statutes and regulations of the STATE. However, GBHA Properties I, Inc. has agreed to make a payment in lieu of taxes to the City of Green Bay contingent on this PILOT Agreement. 3. The CITY agrees to furnish governmental services and benefits to GBHA Properties I, Inc. and the PROPERTIES of the same type and to the same extent as are furnished from time to time, without cost or charge (except by means of property tax) to commercial, multi- unit residential, and single-family residential dwellings and inhabitants of the CITY. GBHA Properties I, Inc. understands that it may be subject to special assessments or special charges charged by the CITY in the same manner that such special assessments and special charges are charged for similar services or undertakings to commercial, multi-unit residential, and single- family residential dwellings in the city. 4. In consideration of those services and benefits provided under the terms of this Agreement, GBHA Properties I, Inc. agrees to pay the CITY an annual payment in lieu of taxes (“PILOT”) for the PROPERTIES for each calendar year during which GBHA Properties I, Inc. is the record owner of the PROPERTIES, in accordance with the PILOT payment calculation, using the rental values calculated below. The PILOT payments hereunder shall be billed in December of each year and due and payable according to dates set forth in Wis. Stat. § 74.11. PILOT = Dwelling rents - less Estimated (Estimated Fair Market utilities expenses * 4.5% Address / Tax ID Fair Market Land Value / 1000 * City (Estimated rent 634,662 – Land Value Mill Rate (7.582)) * 60% Estimated Utilities 19,635) 769,000 $3,489 Appendix A $27,676 5. Every Fifth (5th) year, the City of Green Bay Assessors Office will determine a current Estimated Fair Market Land Value for the PROPERTIES. Should GBHA Properties I, Inc. dispute the Assessors’ valuation, GBHA Properties I, Inc. may supply the CITY with a current Estimated Fair Market Land Value prepared by a third-party appraiser or real estate broker (including a Broker Price Opinion).If the difference between the Assessors’ Estimated Fair Market Land Value and the GBHA Properties I, Inc.-obtained Estimated Fair Market Land Value is less than or equal to ten percent (10%), both GBHA Properties I, Inc. and the CITY agree to use the mean (average) value of the two estimates as the current Estimated Fair Market Value. Should the variance between the two (2) estimates exceed ten percent (10%) of the Assessors’ proposed value, GBHA Properties I, Inc. may elect to either o establish the current Estimated Fair Market Land Value as though the variance between the estimates were only ten percent (10%) (as described above), or,  o at its discretion and expense, obtain a third-party appraisal of the PROPERTIES. Should GBHA Properties I, Inc. provide the CITY with a third-party appraisal, the Estimated Fair Market Land Value shall be equal to the mean (average) value of the three (3) appraisals. 6. The CITY may use and expend PILOT payments hereunder in such manner for such purposes as the CITY desires. 7. This Agreement shall terminate on the day before the respective January 1st of the year during which any of the following events occur: a. The CITY determines that all of the PROPERTIES no longer qualifies for property tax exemption; OR b. Enactment of STATE legislation and or regulations requiring payment by property owners exempt from the general property tax and other similarly situated property exempt owners, for municipal services provided; OR c. Loss of property tax exempt status for the PROPERTIES; OR d. Upon a determination by either of the PARTIES that a continuation of the Agreement is not in the best interest of that party, pursuant to a written ninety (90) day notice to the other party. 8. GBHA Properties I, Inc. agrees to cooperate with the CITY and with applicable Departments of the CITY (including, but not limited to, the CITY’s Assessor’s Office, the CITY’S Attorney Office, and the CITYS Finance Department) with respect to the Agreement by allowing inspection of the PROPERTIES, upon reasonable written request of the CITY, and such documents that GBHA Properties I, Inc. and the CITY may reasonably agree are relevant to an exemption determination. 9. The CITY and GBHA Properties I, Inc. reserve the right to modify and amend this Agreement from time to time, upon mutual written agreement duly executed by the PARTIES. 10. In the event any term, condition, covenant or portion of this Agreement is held to be unconscionable or otherwise invalid, the remainder of this Agreement will remain in full force and effect and GBHA Properties I, Inc. and CITY hereby stipulate to that such term, condition, covenant or portion of this Agreement shall be limited and modified so as to avoid an unconscionable result, and as limited and modified shall become part of this Agreement. 11.This Agreement shall be construed and enforced under laws of the State of Wisconsin. SIGNATURES TO FOLLOW IN WITNESS WHEREOF, the PARTIES hereto by their duly authorized and empowered representatives have signed and executed this Agreement as of the dates herein below. CITY OF GREEN BAY Dated: _______________, 2024 _________________________________ __________________________________ Eric Genrich, Mayor Diana Ellenbecker, Finance Director STATE OF WISCONSIN ) ) SS. BROWN COUNTY ) Personally came before me this day of , 2024 the above named Eric Genrich – Mayor and Diana Ellenbecker-Finance Director to me known to be the person who executed the forgoing instrument and acknowledge the same. (Print or Type name of notary above) Notary Public, Brown County, Wisconsin My Commission Expires:  GBHA Properties I, Inc. Dated: _______________, 2024 _________________________________ GBHA Properties I, Inc., Chair STATE OF WISCONSIN) ) SS. BROWN COUNTY ) Personally came before me this day of , 2024 the above named William VandeCastle, Chair, to me known to be the person who executed the forgoing instrument and acknowledge the same. (Print or Type name of notary above) Notary Public, Brown County, Wisconsin My Commission Expires:  ADDENDUM A Estimated market land values of GBHA properties I, Inc East Side West Side Parcel # Address Est’d Value Parcel # Address Est’d Value 7-671 1125 University Ave $ 20,100 2-267 509 S Maple Ave $ 42,900 7-705 1121 University Ave $ 18,600 2-922 912 S Oakland Ave $ 12,100 8-161 1404 University Ave $ 7,400 3-149 835-837 Christiana $ 12,100 St 8-162 1408 University Ave $ 7,500 3-149-A 839 Christiana St $ 21,800 8-163 1410 University Ave $ 10,500 3-409 836 Cora St $ 19,800 8-164 1412 University Ave $ 11,600 3-525 896 School Place $ 10,700 8-165 1416 University Ave $ 9,500 4--25 815 Dousman St $ 8,100 8-166 1420 University Ave $ 10,500 5--33 816 N Maple Ave $ 12,400 8-167 1424 University Ave $ 8,900 5-102 715 N Chestnut Ave $ 9,200 8-172 1440 University Ave $ 12,900 5-613 323-25 N Ashland $ 9,600 8-173 1444 University Ave $ 13,600 5-918 510 N Chestnut Ave $ 47,200 8-174 1448 University Ave $ 14,800 5-973 522-24 N Maple Ave $ 13,100 8-408 1577 Charles St $ 15,600 5-1006 409 N Maple Ave $ 13,100 8-576 1341-43 University $ 13,400 5-1007 415 N Maple Ave $ 13,100 Ave 8-611 1333 University Ave $ 17,800 5-1033 516 N Ashland Ave $ 13,100 8-612 1337 University Ave $ 12,100 5-1101 712 Bond St $ 16,500 8-613 1339 University Ave $ 12,600 5-1402 886 Division St $ 17,600 9-109 1014-16 Pine St $ 37,300 6-86-A 1428 Dousman St $ 37,600 9-110 1008-10 Pine St $ 37,300 18-491 913 N Chestnut $ 5,800 14-86 1100-02 Pine St $ 24,900 18-795- 967 Holzer St $ 21,500 A 14-898 1009 Crooks St $ 21,700 Total 338,600 Total 357,300  HUD-52267 U.S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT TYPE OF PROJECT (S) LOW-RENT HOUSING PROGRAM x LHA Owned Rental Housing LHA Owned Homeownership COMPUTATION OF PAYMENTS IN LIEU OF TAXES FOR FISCAL YEAR ENDED: 12/31/2024 NAME OF LOCAL HOUSING AUTHORITY CONTRACT NUMBER Green Bay Housing Authority Properties LLC C-830 ADDRESS PROJECT NUMBER (S) 100 N. Jefferson St. Rm. 608 Green Bay, WI 54301 WI-74-2 COMPUTATION OF SHELTER RENT CHARGED 1. Dwelling Rental (Account 3110)…….……..………….…………………….. 634,662.00 2. Excess Utilities (Account 3120)…….……..………………………………… 3. Nondwelling Rental (Account 3190)…….…………..……………………… Homebuyers Monthly Payments for: 4. Earned Home Payments (Account 7712)….……..………...….…...……… 5. Nonroutine Maintenance Reserve (Account 7714)……..….……..………. 6. Total Rental or homebuyers Payments Charged (Lines 1 to 5)…......…. 634,662.00 7. Total Utilities Expense (Accounts in 4300 group)………..…....………….. 19,634.56 8. SHELTER RENT CHARGED (Line 6 minus Line 7)…………….….…….. 615,027.44 COMPUTATION OF SHELTER RENT COLLECTED (To be completed only if Cooperation Agreement provides for payment of PILOT on basis of Shelter Rent Collected) 9. Accounts Receivable (Account 1122 or 1124) at beginning of fiscal year 10. Total of Lines 8 and 9……………………………………………..…………. Deductions: 11. Collection Losses (Account 4570) during current fiscal year…………… 12. Accounts Receivable (Account 1122 or 1124) at end of year….………… 13. SHELTER RENT COLLECTED (Line 10 minus total of Lines 11 & 12) COMPUTATION OF APPROXIMATE FULL REAL PROPERTY TAXES TAXING DISTRICTS ASSESSABLE VALUE TAX RATE AMOUNT (1) (2) (3) (4) City of Green Bay 695,900 7.582 5,276.31 14. Approximate Full Real Property Taxes (Total of amounts in Col. (4)………….……………… 5,276.31 PAYMENTS IN LIEU OF TAXES 15. 4.5% of Line 8 or Line 13, whichever is applicable 1/ (see instructions on reverse side)… 27,676.23 16. PAYMENTS IN LIEU OF TAXES (Line 15 or Line 14, whichever is greater)……………. $ 27,676 Were any expenses incurred for the project(s) during the fiscal year for services or facilities which the local taxing body should have furnished under the terms of the Cooperation Agreement? YES x NO. If the answer is "yes", will such expenses be deducted from PILOT or otherwise collected from the applicable taxing body? YES NO. If the answer is "no", attach a statement showing the amount of such expenses incurred and the reason for not collecting. 1/ If the percentage specified in the Cooperation Agreement or the Contract with HUD is lower, such lower percentage shall be used. PREPARED BY: APPROVED BY: Name Stephanie Schmutzer Name: Cheryl Renier-Wigg Title Senior Accountant 9/16/2024 Title: Executive Director Date: Replaces HUD-52567 and HUD-52567a which are obsolete