Number
151894
Version
SUBSTITUTE 2
Reference
151702
Sponsor
THE CHAIR
Title
Substitute resolution relating to the sale of Milwaukee Public Schools property in accordance with Wisconsin Statutes Section 119.61.
Analysis
This substitute resolution authorizes the sale of the former Carleton School property, 4116 West Silver Spring Drive, to Rocketship Education, Inc. and establishes the terms of the sale according to the Land Disposition Report.
Body
Whereas, The former Carleton School (the “Property”), located at 4116 West Silver Spring Drive in the 1st Aldermanic District, was declared surplus by the Milwaukee Board of School Directors in 2012; and
Whereas, Section 119.61, Wisconsin Statutes, requires that the City Clerk must post public notice of available surplus Milwaukee Public Schools property for 24 consecutive months and, during that period, such property may be sold only to education operators as determined by the Common Council of the City of Milwaukee (the “Common Council”); and
Whereas, Notice of the availability of the Property was posted on the City’s web site beginning January 26, 2016; and
Whereas, Three parties submitted letters of interest (“LOI”) to the City Clerk seeking to purchase the property, and one party subsequently withdrew its LOI; and
Whereas, File No. 151702, adopted by the Common Council on April 15, 2016, found that Rocketship Education, Inc. (the “Buyer”), one of the two remaining parties submitting an LOI for the Property, was an education operator and further found that the other party submitting an LOI was not an education operator; and
Whereas, The Buyer subsequently submitted an offer to purchase the Property for $220,000, based on the appraised value of the Property as established by an independent appraisal completed by The Nicholson Group LLC in March, 2016; and
Whereas, On October 31, 2016, the Buyer submitted a letter to this file summarizing the Buyer’s intent to seek a Charter from Milwaukee Public Schools for the operation of a school by the Buyer on the Property; and
Whereas, The Buyer proposes to invest an estimated $4,500,000 to purchase and renovate the property; and
Whereas, The Department of City Development (“DCD”) has reviewed the offer and development proposal from the Buyer and has determined that the offer and proposal represent fair compensation; and
Whereas, DCD has reviewed financial information submitted by the Buyer and determined that the Buyer has the financial capacity to purchase and renovate the Property; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Land Disposition Report for the Property, a copy of which is attached to this Common Council File, is approved and that DCD is authorized to enter into a Purchase and Sale Agreement with the Buyer, or assignee, materially consistent with the Land Disposition Report and then convey the Property to the Buyer in accordance therewith; and, be it
Further Resolved, That the Commissioner of DCD, or designee, is authorized to sign the Purchase and Sale Agreement, deed and requisite closing documents and to close the transaction and to take such actions, as may be needed, to effectuate the terms of the Land Disposition Report and this resolution, including any needed easements and/or releases of deed restrictions; and, be it
Further Resolved, That the sale proceeds, less sale expenses, shall be deposited in the Milwaukee Public Schools Operations Fund, in accordance with Sections 119.46 and 119.61(5), Wisconsin Statutes.
Drafter
DCD:Martha.Brown:mlb
11/1/16