Verona council discusses Argus affordable-housing agreement, moves to closed session

The Verona Common Council discussed a draft development agreement for the Argus Apartments affordable-housing project at 1050 North Edge Trail and voted to move into a closed session to negotiate terms and staff instructions.

The agreement under review would use tax-increment financing (TIF) resources tied to state law to fund affordable-housing activities, and staff and the city attorney said the packet draft needed substantial edits to align with statutory TIF requirements. City Attorney Conmeyer told the council that the document in the packet is the developer’s draft and that the city will add explicit references to state TIF law and to statutory definitions of “affordable housing” to ensure funds are used correctly.

Why it matters: The draft would direct TIF increment to an affordable-housing fund; that funding is governed by state law and must be spent according to statutory criteria. Conmeyer said the city needs contract language that makes clear the money is coming from the affordable-TIF account, not the general fund, and that the city must protect itself with definitions and indemnification language if requirements are not met.

During the open discussion, Police Chief Dressler presented six-month call-data for comparable apartment properties and said some stand-alone apartment buildings have higher call volumes and more emergency medical service (EMS) calls than multi-building complexes. Dressler said the higher demand at certain stand-alone buildings is driven by service calls and disturbances rather than “major criminal” incidents. He also said the classic building has had several property-manager turnovers, which complicates ongoing coordination.

Alder Keller asked whether the current draft addresses police concerns; Dressler said the document as provided did not, but he has data he can present to committees. Alder Tucker Long asked whether the developer’s presentation included a reserve for social services; Conmeyer and staff said the packet draft did not include a clear services commitment and that any such commitment could be inserted into the agreement if the council wants it as a condition.

Council members also raised timing and enforceability questions about proposed sustainability targets (the draft references LEED Silver or comparable standards). Council members noted LEED certifications can be awarded after construction completion, and staff said payment schedules and certification timelines should be sequenced in contract language so the city can verify performance before releasing funds.

Attorney Conmeyer said the developer’s draft characterizes the city support as a loan rather than a grant. He said staff will add standard TIF agreement language (definitions, required uses, reporting and audits) and recommended adding indemnification provisions so the city would not be liable if statutory conditions are not met.

After the discussion, Alder Swanson moved — and Alder Weiss seconded — to convene in closed session under Wisconsin Statutes §19.85(1)(e) to deliberate and negotiate the use of public funds. The clerk conducted a roll-call vote; all members present voted aye and the council entered closed session.

The council did not take further public action on the agreement in open session and staff said they expect to revise the draft and return to the council for further direction before any final approval.