Number
252193
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. DIMITRIJEVIC
Title
Substitute resolution approving a Project Plan and a Development Agreement, authorizing expenditures and creating Tax Incremental District No. 134 (Austin Commons), in the 14th Aldermanic District.
Analysis
Tax Incremental District No. 134 consists of three (3) parcels located at 2318, 2324 and 2332 South Austin Street in the Bayview neighborhood. The District is being created to support the new construction of 100 affordable rental housing units offered to households earning between 30 to 80 percent of area median income. Fourteen (14) of the 100 units will be designated as supportive housing units.
The Tax Incremental District will fund an annual payment to the Developer for 21 years, equal to 100 percent of any incremental taxes (less $7,500 in annual expenses), resulting from the taxable value of real and personal property in the Tax Incremental District, not to exceed an amount equal to $2,135,000 plus interest, as further described in the Project Plan attached to this Common Council file.
Body
Whereas, The Wisconsin Legislature created Section 66.1105, Wisconsin Statutes, entitled “Tax Increment Law;” and
Whereas, Section 66.1105(4) of the Tax Increment Law sets forth certain process and criteria that the Common Council of the City of Milwaukee (“Common Council”) and the Redevelopment Authority of the City of Milwaukee (“RACM”) must follow to create a Tax Incremental District (“TID” or “District”) and approve a Project Plan (“Plan”); and
Whereas, Pursuant to Section 66.1105(4)(a) through (gm), Wisconsin Statutes, on May 4, 2026, RACM conducted a public hearing on the proposed TID and the Plan, designated the boundaries of the District, approved the Plan, recommended that the District be created, and submitted such recommendation to the Common Council for approval with the Plan, a copy of which is attached to this Common Council File; and
Whereas, As required by Section 66.1105(4)(gm)4.a., Wisconsin Statutes, not less than 50 percent, by area, of the real property within a proposed TID must qualify as either a “blighted area” within the meaning of Section 66.1105(2)(ae), Wisconsin Statutes; an area “in need of rehabilitation or conservation work” as defined in Section 66.1337(2m)(a), Wisconsin Statutes; must be suitable for “industrial sites” within the meaning of Section 66.1101, Wisconsin Statutes, and be zoned for industrial use; or must be “suitable for mixed-use development” as defined in Section 66.1105(2)(cm), Wisconsin Statutes; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that it finds and determines as follows:
1. The District is “in need of rehabilitation or conservation work” within the meaning of Section 66.1105(4)(gm)4.a., Wisconsin Statutes;
2. As required by Section 66.1105(4)(gm)4.a., Not less than 50 percent, by area, of the real property within the district is in need of rehabilitation or conservation work, as defined in s. 66.1337 (2m)(a);
3. As required by Section 66.1105(4)(gm)4.b., Wisconsin Statutes, the improvement and/or development of the District, as described in the Plan, is likely to enhance significantly the value of substantially all of the other real property in and adjoining the District;
4. The Plan is feasible and in conformity with the Master Plan for the City and will promote the orderly development of the City as required by Section 66.1105(4)(g), Wisconsin Statutes;
5. As required by Section 66.1105(4)(gm)4.bm., Wisconsin Statutes, the project costs relate directly serve to rehabilitate or conserve the area / serve to promote industrial development consistent with the purpose for which the District is created under Section 66.1105(4)(gm)4.a., Wisconsin Statutes;
6. As required by Section 66.1105(4)(gm)4.c., Wisconsin Statutes, the equalized value of taxable property of the District plus the value increment of all existing tax incremental financing districts in the City does not exceed the statutory maximum 12 percent of the total equalized value of taxable property within the City;
7. That, pursuant to Section 66.1105(5)(b), Wisconsin Statutes, at the end of the District’s expenditure period, as defined in Section 66.1105(6)(am) 1., Wisconsin Statutes, it is estimated that territory within the District devoted to retail space will be under 35% of the property within the District; and, be and be it
Further Resolved, That the District, designated as Tax Incremental District No. 134 (Austin Commons), City of Milwaukee, is hereby created on July 14, 2026, and is effective as of January 1, 2026, and that the boundaries of the District are approved as described and more precisely set forth in the Plan and that the District contains only whole parcels and said parcels are contiguous as required by Sections 66.1105(2)(k)1 and 66.1105(4)(gm)1, Wisconsin Statutes; and, be it
Further Resolved, That the Plan is approved and adopted as the “Project Plan” for the District; and, be it
Further Resolved, That:
1. The City Clerk is directed to apply to the Wisconsin Department of Revenue for a “Determination of Tax Increments and Tax Incremental Base” for the District pursuant to the provisions of Section 66.1105(5), Wisconsin Statutes.
2. Pursuant to the provisions of Section 66.1105(5)(f), Wisconsin Statutes:
a. The Assessment Commissioner is directed to identify upon the assessment roll, returned and examined under Section 70.45, Wisconsin Statutes, those parcels of property, which are within the District, specifying thereon the name of the District.
b. The City Clerk is directed to make similar notations on the tax roll for the District when making the notations required of the City Clerk under Section 70.65, Wisconsin Statutes.
3. The District shall be designated as Tax Incremental District No. 135 (Austin Commons), City of Milwaukee.
4. Relative to the City’s $2,135,000 contribution provided for in the Plan, which is to be initially paid by Developer and reimbursed by the City, a variance is authorized from the procedures of Common Council File No. 68-461-x, being the Guidelines for the Control of Capital Expenditures, and the City Comptroller is hereby directed to establish the appropriate accounts within the TID Project Account, No. 0336-1910-TD13480000, to appropriate tax incremental collections equal to the total required to reimburse the Developer for the City’s contribution plus interest, as provided in the Term Sheet for the District, in such amounts as set forth in the Plan, and as shall be necessary to implement the Plan.
5. The City Comptroller is directed to establish all accounts and to make all appropriation transfers, upon request by the Department of City Development, for all revenue or expenditure activity under this resolution; and, be it
Further Resolved, That there is not sufficient tax incremental revenue available for street-paving projects within one-half mile of the District, therefore, per the requirement of Milwaukee Code of Ordinances Section 304-95-1, the Common Council waives the requirement to include such costs in the Plan; and, be it
Further Resolved, That the proper City officials are directed to enter into a Development Agreement (and the standard agreements which are ancillary thereto, including but not limited to a Payment in Lieu of Taxes Agreement and Human Resources Agreement) and record the same, as may be applicable for the purposes of implementing the Plan on terms substantially in accordance with the Term Sheet for TID No. 134, which is Exhibit 3 of the Plan; and, be it
Further Resolved, That the proper City officials are directed to execute any additional documents, agreements and instruments necessary to carry out the provisions of the Development Agreement and to implement the Plan.
Drafter
DCD:Larry.Kilmer.dk
06/29/26