City of Milwaukee - File #: 090078

• File #: 090078
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 5/5/2009
• In control: STEERING & RULES COMMITTEE
• Final action: 12/22/2009
• Title: Substitute resolution to approve the execution of a second amendment to a lease agreement with Milwaukee World Festival, Inc.
• Sponsors: ALD. MURPHY
• Indexes: AGREEMENTS, LEASES, MILWAUKEE WORLD FESTIVAL BOARD

Date	Ver.	Action By	Action	Result	Tally
1/5/2010	1	MAYOR	SIGNED
12/22/2009	1	COMMON COUNCIL	ADOPTED	Pass	14:0
12/21/2009	1	STEERING & RULES COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: Individuals present: Grant Langley, City Attorney Tom Gartner, Assistant City Attorney Danielle Bergner, Assistant City Attorney	Pass	7:0
12/17/2009	1	STEERING & RULES COMMITTEE	HEARING NOTICES SENT
12/16/2009	1	CITY CLERK	DRAFT SUBMITTED
11/30/2009	0	STEERING & RULES COMMITTEE	HELD TO CALL OF THE CHAIR; Minutes note: Ald. Bauman moved that the STEERING AND RULES COMMITTEE convene into closed session, pursuant to s. 19.85(1)(e), Wis. Stats., for the purpose of formulating negotiation strategies relating to the File #090078, resolution approving the execution of a second amendment to a lease agreement with Milwaukee World Festival, Inc. Roll call taken at 3:27 P.M.: Present: 6 - Ald. Hines Jr., Witkowski, Witkowiak, Bauman, Donovan and Coggs Excused: 2 - Ald. Murphy and Davis Also present: City Attorney Grant Langley, Tom Gartner, Assistant City Attorney, Danielle Bergner, Assistant City Attorney, Barry Zalben, Manager, Legislative Reference Bureau, Jeff Ostermann, Legislative Reference Bureau and Ald. Kovac Ald. Donovan moved that the committee reconvene into open session. Roll call taken at 4:07 P.M.: Present: 6 - Ald. Hines Jr., Witkowski, Witkowiak, Bauman, Donovan and Coggs Excused: 2 - Ald. Murphy and Davis	Pass	6:0
11/25/2009	0	STEERING & RULES COMMITTEE	HEARING NOTICES SENT
6/24/2009	0	PUBLIC WORKS COMMITTEE	REFERRED TO	Pass	3:0
6/19/2009	0	PUBLIC WORKS COMMITTEE	HEARING NOTICES SENT
6/19/2009	0	PUBLIC WORKS COMMITTEE	HEARING NOTICES SENT
5/5/2009	0	COMMON COUNCIL	ASSIGNED TO

Number
090078
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. MURPHY
Title
Substitute resolution to approve the execution of a second amendment to a lease agreement with Milwaukee World Festival, Inc.
Analysis
This resolution provides the Common Council's approval, as required by sec. 30.38(6), Stats., of a Second Amendment to Lease Agreement (“Lease Amendment”) between the Board of Harbor Commissioners ("Board") and Milwaukee World Festival, Inc. ("Festival").

The resolution also authorizes the proper City officers to execute the Lease Amendment. The Lease is for property commonly known as the Henry Maier Festival Grounds. The Lease Amendment extends the term of the Lease by ten (10) years so that the Lease term is thirty (30) years, commencing on January 1, 2001 and terminating on December 31, 2030. The ten-year extension is contingent upon Festival completing a renovation of the south end of the festival grounds by December 31, 2015 with a corresponding expenditure of not less than $10 Million. The Festival's annual rental payments are currently estimated to be $1,542,700 in 2010, increasing to $3,926,700 in 2030, subject to certain adjustments as set forth in the original Lease and reflected in Exhibit O-3 to the Lease Amendment attached to this file. In addition to Rent, the Lease Amendment also provides for an annual Supplemental Service Fee payment intended to offset a portion of the increasing costs of public safety related services to Festival’s operations. The Supplemental Service Fee commences for year 2009 at $100,000. The Fee then escalates by three percent through 2020, by four percent for the years 2021 through 2025, and by five percent for the final five years of the Lease. Pursuant to this escalation structure, Supplemental Service Fees would total $3,176,057 over the remaining term of the Lease as set forth in Exhibit O-4 to the Lease Amendment attached to this file. The Lease Amendment also reserves to the City future development rights ...