Henschel tells Council to take a measured approach to BID issue while he and Scrima develop solution

Published on: 9/28/2012

After accusations and resignations have been rampant within Waukesha's downtown Business Improvement District, downtown business owners and former BID Board members have pleaded that the Common Council get involved.

Two aldermen asked for the Council to discuss the removal of the BID Board two weeks ago. 

Now, tomorrow's Common Council agenda states that recommendations will be made to Mayor Jeff Scrima for his appointments to the BID Board.

But last Friday, new city administrator Ed Henschel sent out a memo to the Common Council "suggesting that the Council take a measured approach to the issue and allow the mayor and I the time necessary to develop a longer range solution to provide the support to our downtown."  

Henschel said members of the Common Council have contacted him and Scrima pressing for an immediate appointment of a new board.

However, he doesn't see this as a solution.

"It appears some have taken advantage of the BID as a public forum to "create" controversy, which in turn has provided the press with ample opportunity to continue the controversy.

“I suggest that without having a framework and plan that changes the BID District’s method of operation perhaps even its purpose, (than) we will be throwing the new board “under the bus” and we will shortly face a new round of controversy and more resignations.”

With the BID's executive director and 11 of its 13-member BID Board having resigned in the last month, Henschel said he has taken responsibility for the administration of the BID and has taken immediate steps to insure the continued operation of current activities including the BID’s telephone, paying bills, providing an authorization to the bank to allow former BID member Ron Lostetter and current vice president for finance and administrative services at Carroll University to sign checks for the time being and to monitor mail and emails.

“We have taken the temporary steps necessary to keep things running as smoothly as possible,” Henschel said.

Henschel noted in the memo that the BID Board is effectively dissolved with only two BID Board members left. But he added that the BID District is not dissolved.

However, Henschel said that while he has taken over on a short-term basis, he made it clear that his office cannot and has no desire to provide administrative support for the long term.

As a result, he said he and Scrima have been meeting daily to develop a concept for a reorganized BID operation as well as with numerous business constituents to obtain their input on the needs of the downtown.

“An overriding consideration is not simply creating a new board and continuing operations as usual,” Henschel said. “This will result in a continuation of the controversies and provide a forum for dissent with nothing more than new faces to criticize.”

And he said that as the BID looks at long-term solutions he wanted to let the Council know that according to the city attorney, the city can’t change the size of the board until the current operating plan for the BID expires, which is Dec. 31, 2012.

He added that because of the charges and allegations made against BID Board members, he said it is questionable whether others would be willing to accept an appointment to a new BID Board. Henschel explained that at least seven appointees are required and then all seven must attend every meeting to have a quorum.

Henschel explained the BID’s 2012 Budget is $291,025 and $168,500 (58 percent) of that is budgeted for administration including salaries, rent utilities and professional services.

The BID tax assessment contributes approximately $145,000 to this budget and the city contributes approximately $22,000 in tax dollars to this budget plus a significant amount of in-kind services. He said that this leaves a limited amount of money available to support actual downtown infrastructure and events.