City, developer move toward ERTID compact

By Mike Mathes, Tri-County News

Kiel's City Council opened the door to a potential $1.5 million housing development by agreeing in principal Nov. 17 to a pact with Father Ed Development.

Final language in the agreement still hinges on the ability of legal counsel for the two parties to hammer out a small sticking points.

Under the tenets of the agreement, the City of Kiel agrees to acquire the property west of Seventh Street (the former Stoelting, Inc. location) from Mike Frede.

The City will invest $50,000 for that acquisition, which has the support of Frede's lending institution, the State Bank of Chilton. Under its Environmental Recovering Tax Incremental Financing district, the city will outlay funds to remediate contamination on the property.

Kiel City Attorney Jim Burnett said the city will need to retain a firm to map out the plan for the remediation of those environmental issues. "We don't know what the cost will be. We have heard estimates ranging from $150,000 to $180,000."

Burnett said the city would not proceed with such remediation unless they have a committed contractor who would be able to put an improvement on the property. The tax increment generated by the improvement would pay for the remediation and acquisition.

Developer eyes housing

Mike Check, through Father Ed Development, has come forward as a developer willing to work with the city.

He has indicated plans to construct housing units in two phases, with a total value of $1.5 million.

Under the terms of the developer's agreement Father Ed Development will escrow $50,000. That sum would be refunded to the city in the event his development does not take place in the allowable time frame.

The agreement calls for Check's firm to construct the first half of the development to be commence within 30 days of the title being conveyed to his company.

Prior to conveying the property, the city will require a letter of commitment from Check's financial institution to provide the lending for the project.

That conveyance brought up one of the sticking points of the agreement. Attorney Burnett said he would like that letter to come from the financial organization as soon as possible. He said waiting for an official letter of clearance from the DNR could add six months or more to the project calendar.

The first half of development could take place as soon as the remediation plan is put into place. Construction of the first phase would occur on a portion of the property which does not require remediation.

The first project must be completed within six months of that time.

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