Number
050108
Version
Substitute 2
Reference
Sponsor
ALD. BAUMAN
Title
Substitute resolution approving a cooperation agreement between the City of Milwaukee and the Redevelopment Authority regarding financing of a major City capital project.
Analysis
This resolution authorizes the City to enter into a Cooperation Agreement with the Redevelopment Authority (RACM) of the City of Milwaukee for the renovation of the exterior of City Hall. The Cooperation Agreement is necessary to provide available funds in order for the City to enter into contracts for the renovation.
The resolution also authorizes: 1) entering into an Obligation for the repayment of costs incurred by RACM pursuant to the Cooperation Agreement; 2) permission for RACM to pledge the Obligation as security for Bonds issued to pay for renovation costs; and 3) the pledging of the Moral Obligation of the City to the repayment of the Bonds.
While it is anticipated that the actual financing terms will be brought before the Common Council for approval, such approval is not required should RACM require funds in order to meet its obligation under the Cooperation Agreement.
Body
Whereas, Milwaukee City Hall needs to be substantially renovated due to the deterioration of the exterior façade and the structural degradation of the bell tower; and
Whereas, The Redevelopment Authority of the City of Milwaukee (the "RACM") has determined that City Hall, by virtue of its present use and condition, meets the definition of Section 66.1533(2m)(bm), Wisconsin Statutes; and
Whereas, The City and the RACM desire to enter into a cooperation agreement in order to provide the most efficient and cost effective financing for the restoration of City Hall through the cooperative exercise of their respective powers; and
Whereas, A cooperation agreement, City Hall Restoration Project - Financing is on file with the Common Council;
now, therefore, be it
Resolved by the Common Council of the City of Milwaukee, that the Cooperation Agreement, City Hall Restoration Project - Financing (the "Agreement") is hereby approved and the proper City officers are hereby authorized and directed to execute the Agreement on behalf of the City of Milwaukee (the "City"); and, be it
Further Resolved, That an obligation (the "Obligation") with RACM for repayment, over a term not to exceed 20 years, of a principal amount not to exceed $70,000,000 plus interest thereon, for the renovation and financing costs under the Agreement, is hereby approved and the proper City officers are hereby authorized and directed to execute the Obligation on behalf of the City; and, be it
Further Resolved, That RACM is authorized to pledge the Obligation as security for bonds issued (the "Bonds") in order for RACM to pay for expenses pursuant to the Agreement; and be it
Further Resolved, That the Moral Obligation of the City is hereby pledged to the prompt payment of debt service on, and to the replenishment of a debt service reserve for, the Bonds.
Requestor
City Attorney
Drafter
TOG:mll:93256
May 18, 2005
1089-2005-1356