Number
070377
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution approving Amendment No. 2 to the Project Plan for Tax Incremental District No. 47 (875 East Wisconsin Avenue), in the 4th Aldermanic District.
Analysis
This resolution approves donating funds from TID No. 47 to TID No. 20 (Florida Yards) and TID No. 21 (North Avenue Commerce Center). TID Nos. 20 and 21 are currently not expected to generate sufficient revenue to retire their respective indebtedness within their statutory lives. The donation proposed by this amendment will provide sufficient additional funds to retire their indebtedness. Currently, TID No. 47 generates approximately $399,000 each year in excess of its scheduled debt service payment. TID No. 47 will donate $125,000 per year, for five years, to TID No. 20 and will donate the balance of its annual surplus revenue, approximately $274,000 per year, for five years, to TID No. 21. This is expected to retire TID Nos. 20 and 21 by 2019, one year before these districts are required to terminate.
Body
Whereas, Chapter 105 of the Laws of 1975 of the State of Wisconsin with amendments from other chapters of said laws created Section 66.1105, Wisconsin Statutes, titled “Tax Increment Law;” and
Whereas, Boundaries and a Project Plan for Tax Incremental District (“TID”) No. 47 (875 East Wisconsin Avenue) were approved by the Redevelopment Authority of the City of Milwaukee (“Authority”) and the Common Council of the City of Milwaukee (“Common Council”) in 2002; and
Whereas, The Tax Increment Law allows tax incremental districts, under certain circumstances, to donate revenues to other tax incremental districts in the same municipality. Generally, these circumstances are:
The “Donor” and the “Recipient” district must have the same overlying taxing jurisdictions.
The amendment to donate funds must be made before the Donor district has recovered all of its project costs.
The Recipient district must have been created upon a f...
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