Number
011303
Version
ORIGINAL
Reference
981378
Sponsor
THE CHAIR
Title
Resolution approving First Amendment to Riverwalk Development Agreement for Milwaukee Institute of Art and Design and Fourth Amendment to Cooperation Agreement for 511 East Menomonee Street and 151 North Jackson Street Blight Designation Project. (DCD)
Analysis
This resolution approves the First Amendment to Riverwalk Development Agreement for Milwaukee Institute of Art and Design dated February 24, 1999 and Fourth Amendment to Cooperation Agreement for 511 East Menomonee Street and 151 North Jackson Street Blight Designation Project dated January 25, 2000. Under this Amendment, the City will advance the Milwaukee Institute of Art and Design $680,000 to fund approximately half of the cost of the MIAD Riverwalk. MIAD will repay this City advance through special assessments, which will recover the $680,000 plus interest at a rate equal to the City's cost of funds.
BODY
Whereas, The City of Milwaukee ("City") and the Milwaukee Institute of Art and Design ("MIAD") entered into a February 24, 1999 Riverwalk Development Agreement for Milwaukee Institute of Art and Design (the "Initial Agreement") for the construction of a Riverwalk Project Segment (the "MIAD Riverwalk") adjacent to the MIAD property located at 273 East Erie Street, Milwaukee, Wisconsin, Tax Key No. 392-0964-000-0, (the "MIAD Premises"); and
Whereas, The Initial Agreement recited that pursuant to a Riverwalk Development Agreement, as amended, the "Riverwalk Development Agreement" between the City and Business Improvement District No. 2 ("BID No. 2"), BID No. 2 would be "responsible for carrying out the development and construction of" "the MIAD Riverwalk." However, under the terms of the Riverwalk Development Agreement, construction of the MIAD Riverwalk would not begin until the means of financing MIAD's portion of the cost of the MIAD Riverwalk were established to the satisfaction of the City; and
Whereas, The Initial Agreement detailed the means of financing MIAD's portion of the cost of the MIAD Riverwalk and further provided that the City would consider financing MIAD's portion of the cost of the Riverwalk at an interest rate equal to the City's cost of funds and secured with collateral acceptable to the City Comptroller; and
Whereas, The source of City funds to fund the financing of MIAD's portion of the cost of the MIAD Riverwalk was provided under the January 25, 2000 Second Amendment to Cooperation Agreement for 511 East Menomonee Street and 151 North Jackson Street Blight Designation Project between the City and the Redevelopment Authority of the City of Milwaukee ("Authority") (hereinafter referred to as the "Second Amendment"); and
Whereas, The Second Amendment provided that the Authority could expend up to $1,850,000, as provided thereunder, upon entry by the City and the Authority into one or more agreements with MIAD and/or BID No. 2 providing for the reimbursement to the City of $1,700,000; and
Whereas, The purpose of this Amendment is to satisfy the Second Amendment's precondition for disbursing $680,000 of the $1,850,000 described in the Second Amendment and to set forth the conditions for MIAD reimbursement, as special assessments, of that $680,000 plus interest at a rate equal to the City's cost of funds and to relieve BID No. 2 from the responsibility for carrying out the development and construction of the MIAD Riverwalk and to transfer that responsibility to MIAD; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the proper City officials are authorized and directed to execute the First Amendment to Riverwalk Development Agreement for Milwaukee Institute of Art and Design and Fourth Amendment to Cooperation Agreement for 511 East Menomonee Street and 151 North Jackson Street Blight Designation Project, a copy of which is attached to this Common Council File.
Drafter
DCD:MJW:mjw
01/22/02/B