Number
130733
Version
SUBSTITUTE 1
Reference
001778, 040391
Sponsor
ALD. HINES
Title
Substitute resolution approving a budget adjustment for Tax Incremental District No. 44 (Walnut/Locust Neighborhood Improvement Fund), authorizing execution of a Work-Out Agreement with Josey Heights Development, LLC and approving the creation of a Neighborhood Loan Fund, in the 15th Aldermanic District.
Analysis
This substitute resolution approves an adjustment for TID No. 44 expenditures in anticipation of the formal closure of the TID, authorizes the execution of a Work-Out Agreement for the Josey Heights Development, in accordance with the terms summarized in a draft agreement, and authorizes the creation of a Neighborhood Loan Fund to be administered by the Neighborhood Improvement Development Corporation.
Body
Whereas, A summary of Tax Incremental District No. 44 ("TID No. 44") expenditures is provided herein, a copy of which is attached to this Common Council File; and
Whereas, Pursuant to Common Council File No. 001778 adopted on June 19, 2001, the Common Council adopted the Project Plan for TID No. 44 to facilitate home rehabilitation and new single-family infill development in the Lindsay Heights Neighborhood; and
Whereas, Pursuant to Common Council File No. 040391 adopted on July 27, 2004, the Common Council approved Amendment No. 1 to the Project Plan for TID No. 44 to facilitate the Josey Heights Project by Josey Heights Development, LLC (the "Developer") pursuant to the Josey Heights Development Agreement recorded by the Milwaukee County Register of Deeds as Document No. 09191033 (the "Development Agreement"); and
Whereas, The Developer is in default under the terms of the Josey Heights Development Agreement and staff of the Department of City Development negotiated terms for the Josey Work-Out Agreement, a draft copy of which is attached to this Common Council File; and
Whereas, Expenditures approved for TID No. 44 included the funding for forgivable loans for the rehabilitation of existing homes and funding for infrastructure, site improvement and remediation costs for the Josey Heights Development; and
Whereas, The Common Council desires to approve the creation of a Neighborhood Loan Fund to originate forgivable loans for the rehabilitation of existing homes in accordance with the Proposed Summary of Loan Fund Guidelines, a copy of which is attached to this Common Council File, and to approve the terms of the Josey Work-Out Agreement; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the budget adjustment for TID No. 44 and the expenditures summarized therein are hereby approved; and, be it
Further Resolved, That the Josey Work-Out Agreement, substantially in the form as presented herein, is hereby approved and that the proper City officials are directed to execute the agreement on behalf of the City of Milwaukee ("City"); and, be it
Further Resolved, That the reacquisition of the Josey Heights Development by the Redevelopment Authority of the City of Milwaukee ("RACM") is hereby approved, subject to a commitment from RACM that future net sales proceeds are to be returned to the City; and, be it
Further Resolved, That the creation of a Neighborhood Loan Fund, in accordance with the terms of the Proposed Summary of Loan Fund Guidelines, is hereby approved; and, be it
Further Resolved, That the City Comptroller is directed to utilize excess tax incremental revenue, or borrow on a short-term basis, or some combination of both, and transfer up to $920,000 to Project Account No. 0336 1910 TD04480000 for the purpose of providing funds necessary for the costs detailed in the summary of TID No. 44 expenditures, which is included in this Common Council File.
Drafter
DCD:MP:mp
10/03/13