Number
000737
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution approving Renovation Lease and Cooperation Agreement by and among the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee and the Board of the Captain Fredrick Pabst Theater.
Analysis
This resolution authorizes City officers to execute a Renovation Lease and Cooperation Agreement with the Redevelopment Authority and the Board of the Captain Fredrick Pabst Theater. Under the terms of this agreement, the Redevelopment Authority will issue revenue bonds not to exceed $3,000,000 with the proceeds from those bonds being used to fund part of the renovation cost for the Pabst Theater. Those renovation costs include reconstruction of the second balcony, new elevators and a new glassed-in lobby extension on the east side of the Theater. The total renovation project cost is approximately $9.3 million, with approximately all but $2.2 million of that cost having already been raised through private donations and prior City capital commitments to the Theater. The Theater is a City-owned facility operated, pursuant to statute, by the Pabst Theater Board. The Theater Board is committed under the terms of the Cooperation Agreement to continue its efforts to raise the remaining $2.2 million; however, in order to contractually commit to the entire project, the Pabst Board needs interim financing in the amount not to exceed $3,000,000. Under the terms of the Lease and Cooperation Agreement, the debt service on the bonds sold by the Redevelopment Authority would be paid by the City through a lease agreement between the City and the Redevelopment Authority. The Pabst Board would then pledge all revenues from pledges which it raises to the City to pay for that debt service.
Body
Whereas, The Captain Fredrick Pabst Theater (the "Theater") is a municipal theater organized and operating under sec. 229.27, Stats., and sec. 16-12, Milwaukee City Charter; and
Whereas, Pursuant to sec. 229.27(4), Stats., and sec. 16-12-4, Milwaukee City Charter, all real and personal property of the Theater is titled in the City; and
Whereas, The Theater is located within the boundaries of an Authority Renewal Area; and
Whereas, Pursuant to sec. 229.27(3), Stats., and sec. 16-12-3, Milwaukee City Charter, the Board has complete and autonomous control of the building, maintenance and control of the Theater; and
Whereas, The Board and the City have determined that in order to maintain and enhance the public's use of the Theater and to preserve the Theater as a historic treasure for the citizens of Milwaukee, certain renovation work (the "Renovation Project") should be undertaken; and
Whereas, The Board has undertaken private fundraising for the cost of the Renovation Project and has received either funds or legally binding pledges (collectively referred to as the "Contributed Funds") for use in funding the cost of the Renovation Project; and
Whereas, The Board has entered into several contracts for the construction of the Renovation Project (hereinafter referred to as the "Renovation Contracts"); and
Whereas, The Authority is willing to take assignment of the Renovation Contracts from the Board and to provide funds to pay for the cost of those Renovation Contracts from contributed Funds assigned to the Authority by the Board and from the proceeds of bonds issued by the Authority under the provisions of sec. 66.431 ("RACM Bonds"); and
Whereas, The City is willing to lease the Renovation Project constructed by the Authority for rental payments equivalent to the Authority's debt service on the RACM Bonds; and
Whereas, The Board shall be responsible, as the Authority's agent, for the completion of the Renovation Project and for the complete and autonomous control of the Renovation Project, after it has been constructed and leased to the City, in accordance with the provisions of sec. 229.27(3), Stats., and sec. 16-12-3, Milwaukee City Charter; and
Whereas, In consideration for the Authority's taking assignment of the Renovation Contracts and for the City making the Renovation Project available to the Board, the Board shall assign to the City or the Authority the Contributed Funds and any additional pledges received in such proportion as will enable both the City and the Authority to fulfill their obligations under this Cooperation Agreement and Lease; and
Whereas, The parties are entering into this Cooperation Agreement and Lease pursuant to the provisions of sec. 66.30 and sec. 66.431, Stats.; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the proper City officers are hereby authorized and directed to execute the Captain Fredrick Pabst Theater Renovation Lease and Cooperation Agreement attached to this file.
Requestor
Drafter
City Atty.
PBM:dms
9/20/00
32894