NUMB:
972014
VERS:
SUBSTITUTE 2
REF:
971003
XXBY:
ALD. HENNINGSEN
TITL:
Substitute resolution amending the 1998 Operating Plan for Business Improvement District No. 2 (Historic Third Ward) for the purpose of the development of a Water Street Parking Structure.
ANLS:
- Analysis -
BID No. 2 proposes to develop a 400-450 space parking ramp at the southeast corner of North Water Street and East Chicago Street. The parking ramp will be financed through the issuance of up to $6,000,000 of Redevelopment Authority Revenue Bonds. Payment on the Bonds will be secured by a Letter of Credit from a commercial banking institution. This substitute resolution amends the 1998 Operating Plan for BID No. 2 by providing for an additional assessment on properties located within the BID in an amount necessary to reimburse the bank for any draws on the Letter of Credit. This obligation shall continue as long as the Bonds are outstanding. The BID Plan also provides for a payment by the City of 50 percent of the bank's Letter of Credit fees (estimated at $30,000 per year), for the initial term of the Letter of Credit, up to ten years. Funds for this payment shall be provided from the Development Opportunities Fund. The Amended Plan also subordinates to the bank any claim the City may have on assessments received from the BID relative to the BID's guarantee of revenues for TID No. 11 and payment of its share of Riverwalk expenses in TID No. 34.
BODY:
Whereas, The Common Council of the City of Milwaukee, by File No. 870501, adopted on October 6, 1987, created Business Improvement District No. 2 ("BID No. 2") and approved its first year Operating Plan; and
Whereas, On November 4, 1997, the Common Council adopted File No. 971003 approving the 1998 Operating Plan for BID No. 2; and
Whereas, On April 7, 1998, the Common Council adopted File No. 971819, Amending and Restating the 1998 Operating Plan for BID No. 2; and
Whereas, BID No. 2 proposes to amend its 1998 Operating Plan to permit it to develop a 400-450 space, multi-level Parking Structure to be constructed at the southeast corner of North Water Street and East Chicago Street (128 North Water Street); finance the development of the Parking Structure with revenue bonds (the "Bonds") issued by the Redevelopment Authority of the City of Milwaukee; secure payment of principal and interest to the bondholders with a Letter of Credit to be issued by a commercial banking institution (the "Bank"); and further authorize an annual assessment, if necessary, in an amount sufficient to reimburse the Bank for any draws on the Letter of Credit, or to maintain a debt service reserve fund, or make such other payments as are required to pay principal, interest and related fees on the Bonds; and
Whereas, The Amended Plan also subordinates to the Bank any claim the City may have on assessments received from the BID relative to the BID's guarantee of revenues for TID No. 11 and payment of its share of Riverwalk expenses in TID No. 34; and
Whereas, The Board of BID No. 2 approved the Second Amendment to the 1998 Operating Plan on July 23, 1998; and
Whereas, The findings and determinations recited in the Preface of the Second Amendment to the 1998 Operating Plan are adopted as the findings and determinations of the City of Milwaukee; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the Second Amendment to the 1998 Operating Plan for BID No. 2, a copy of which is attached to this Common Council File, is approved; and, be it
Further Resolved, That for the initial term of the Letter of Credit (but not to exceed ten years) the City of Milwaukee shall pay 50 percent of the Bank's Letter of Credit fees, when due, such payment to be made from the Development Opportunities Fund, Account No. 31-636-0001; and, be it
Further Resolved, That the City Treasurer, the City Comptroller, the Assessment Commissioner and other affected departments are authorized and directed to collect and disburse the BID No. 2 assessments and to process the City share of the payment for the Letter of Credit; and, be it
Further Resolved, That all City officials, departments, boards and commissions are authorized and directed to take all actions and provide such assistance needed to carry out the intent and purpose of this resolution and the approved Second Amendment to the 1998 Operating Plan for BID No. 2.
ZDPT:
DFTR:
DCD/JS/arj
07/17/98