Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Economic Development topic
No spam. Unsubscribe anytime.
Platteville council approves two‑year loan extension and conditional sale of industry‑park lot
Summary
The council approved a two‑year extension on a 2015 loan to Element/LMN with a lower Fidelity Bank rate and conditionally approved the sale of a 1.34‑acre portion of Industry Park Lot 47 to LV Labs for up to $45,000, subject to development and potential TIF arrangements.
The Platteville Common Council approved two separate action items at its May 12 meeting: a two‑year loan extension involving Fidelity Bank and LMN/Element Investments, and a conditional sale of a portion of Industry Park Lot 47 to LV Labs.
On the loan, city staff explained the loans originated in 2015 when the city and the RDA lent funds to Element Investments for improvements at 25 East Main Street. Because the developer remained underwater and a bank refinancing was not available, staff recommended another two‑year extension. The council approved a two‑year extension with Fidelity Bank at a reduced nominal rate (staff cited 5.95% as the proposed bank rate) and a corresponding two‑year extension to LMN at an increased rate (6.95%) intended to encourage refinancing. Staff described the monthly payment as approximately $1,379 (presentation included an approximate monthly payment figure); the motion passed with a recorded vote.
On economic development, staff reported that LV Labs intends to buy a 1.34‑acre portion of Industry Park Lot 47 to build a roughly 7,200‑square‑foot facility that would create an estimated eight full‑time jobs and an initial project cost expected to exceed $650,000. Negotiations originally assumed the parcel sat in TID 9 and that the city would provide half the storm‑water pond cost as a pay‑for‑performance incentive (PGO). Staff later discovered the parcel is currently in TID 6 (beyond its expenditure period), so incentives via TID 9 are not automatically available.
Council discussed two options: amend TID 9 to include the parcel (which would take time and uses limited amendment capacity) or provide equivalent assistance by reducing the sale price and/or creating an escrow/PGO arrangement so the buyer nets the same incentive. The council approved a motion to sell the parcel for up to $45,000 subject to a development agreement, construction deadline, repurchase agreement and a TIF assistance agreement; staff will finalize the development and TIF terms, including whether to escrow funds or pursue a TID amendment.
Both motions passed on recorded voice votes. Staff said the purchaser was present in the audience and that closing and the precise financial mechanics would be worked out before final closing.
