Council approves memorandum finalizing $45,000 budgeted to new alliance

Money to be used to help Elkhorn Economic Development Alliance get ball rolling

By Kellen Olshefski

Editor

The City of Elkhorn Common Council voted in favor of a Memorandum of Understanding appropriating $45,000 to the now officially formed Elkhorn Economic Development Alliance.

What has become commonly referred to as the EEDA by aldermen, city officials and members, the alliance was formed after a previous city economic development group was dissolved by the council last year. The alliance was formed with hopes of helping in attracting businesses – be it restaurants, retail or industry – to the area and aid current Elkhorn businesses in bettering themselves.

According to city documents, under the memorandum of understanding the alliance will be paid on a semi-annual basis with the council reviewing the alliance’s compliance with the agreement in June. Additionally, the alliance is required to provide a quarterly report, in person, at a Common Council meeting in March, June, September and December, outlining the activities undertaken by the alliance.

Services outlined in the memorandum include redevelopment services/assistance in the Brownfield and downtown areas of the city, resource development and utilization, organizational and community strategic planning, business retention, expansion and attraction services and its service as a community development resource to the Council.

The agreement ends annually or with 30 days written notice from either party, and at that time, the unused portion of funds is returned to the city.

Mayor Brian Olson said Monday night the city went into this endeavor with the understanding the initial sum would be a sort of “seed money,” to help get the alliance up and running.

City Administrator Sam Tapson said he believes the alliance originally submitted a request for about $61,000, which included a full-market analysis – referred to as a gap-study by some – of business needs for the community, including the types of businesses Elkhorn needs and what specific businesses the alliance should approach. The city has already set aside $25,000 for the study, according to Tapson.

A motion to approve the memorandum was given unanimous approval by the council.

Other business

In other business, the council voted in favor of submitting a deferred payment agreement application to the Wisconsin Public Service Commission.

Under Wisconsin Act 274 approved by legislators last summer, and municipal utilities are permited to refuse to offer deferred payment agreements, helping to keep unpaid utility bills off of the tax roll.

During the Jan. 26 Municipal Services and Utilities Committee meeting, City of Elkhorn Utilities Director John Murphy said Act 274 affects the renters, not landowners, that don’t pay their utility bill. Under the law, Murphy said the city is not required to offer renters meeting the criteria deferred payment agreements.

Currently, if delinquent utility bills are unpaid by the end of the year, Murphy said the balance is put on the property’s tax bill and the landowner ends up paying it.

Out of the 82 municipal electric utilities in Wisconsin, Murphy said, to date, 17 have adopted the new rules.

Murphy said Monday, that based on the Council’s approval, the department would submit the application to the commission to get the tariff changed. From there, as the commission is “bogged down,” with applications, it would take about 60-90 days to get the application approved.

Council approval was unanimous.

Additionally, Alderman Hoss Rehberg, chairman of Elkhorn Legislative and Regulatory Committee, said at its last meeting, the committee voted in favor of assessing 50 demerit points to Someplace Else for serving and underage buyer on Dec. 22 during a City of Elkhorn Police Department compliance check.

While the demerit points for the offense is typically 75, Rehberg said the committee opted for a less strict assessment as it is the restaurant’s first violation.

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