Number
161577
Version
SUBSTITUTE 1
Sponsor
THE CHAIR
Title
Substitute resolution approving the First Amendment to Development Agreement for the Mitchell Street Library Project.
Analysis
This resolution approves the First Amendment to Development Agreement for the Mitchell Street Library branch in order to accommodate scheduling adjustments with the developer.
Body
Whereas, By passage of Ordinance File No. 151852 on May 24, 2016, the Common Council of the City of Milwaukee authorized a $5.3 million loan and the execution of a development agreement and other development-related documents among the City, the Milwaukee Public Library (“MPL”) and Gorman & Company, Inc. (“Developer”) for a development project that includes a new Milwaukee Public Library branch at 906-910 West Mitchell Street; and
Whereas, The original development agreement required the Developer to complete all work on the shell of the Library unit of the building by December 31, 2016, and upon such completion would trigger the payment to Developer of the remaining $4.5 million in loan funds being provided by the City; and
Whereas, The First Amendment to Development Agreement amends the deadline for Gorman to substantially complete the library shell to June 1, 2017 so the work can be coordinated with MPL’s work on the interior build-out; and
Whereas, The First Amendment to Development Agreement allows the City’s remaining loan funds to be paid into the transaction immediately so MPL can begin to pay its contractors for MPL’s work on the interior of the Library unit before Developer has completed all shell work; and
Whereas, The original development agreement required City to complete parking lot improvements adjacent to the project in exchange for a payment made by Developer to City for the parking lot land and improvements, however, it is now anticipated that Developer may complete those parking lot improvements; and
Whereas, The First Amendment to Development Agreement allows Developer to complete the parking lot improvements with an understanding that $105,000 paid by Developer to the City to complete that work will be reimbursed to Developer if Developer completes the parking lot improvements by July 1, 2017; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the First Amendment to Development Agreement for the Mitchell Street Library Project is approved and that the appropriate City officials are authorized to enter into First Amendment to Development Agreement and any other necessary project-related documents; and be it
Further Resolved, That the $4.5 million loan payment not yet paid to Developer shall be immediately funded by the Branch Library New Construction Account No. LB145160200 and the MPL contribution account and the City Comptroller is authorized to make such transfers as are necessary to affect the loan; and be it
Further Resolved, that the City Comptroller is authorized to make such transfers and accounting entries to carry out the intent of this resolution.
Requestor
Milwaukee Public Library
Drafter
CAO: Mary L. Schanning
March 6, 2017
1125-2014-2935:237492