Number
050276
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. HINES AND ALD. BAUMAN
Title
Substitute resolution facilitating redevelopment in the vicinity of 20th and Walnut by approving the blight designation and acquisition of the properties at 2005-2101 West Walnut Street, approving a boundary and Project Plan creating Tax Incremental District No. 58 (20th and Walnut) and approving a Cooperation Agreement with the Redevelopment Authority of the City of Milwaukee to implement the Project Plan, in the 15th and 4th Aldermanic Districts. (Redevelopment Authority)
Analysis
Adoption of this substitute resolution will approve the surplus declaration and blight designation of privately owned properties for acquisition by the Redevelopment Authority, approve a Project Plan for a Tax Incremental District for the purposes of acquiring and redeveloping the properties consistent with the Fond du Lac and North Neighborhood Comprehensive Plan and authorize a Cooperation Agreement with the Redevelopment Authority to implement the Project Plan. The Project Plan provides for up to $2.2 million in funding for costs associated with the acquisition, site preparation and installation of public improvements for the new development.
Body
Whereas, Section 66.1333(5)(c)(1) of the Wisconsin Statutes enables the redevelopment authority of a first class city to acquire blighted property, in full or in part, without designating a boundary or adopting a redevelopment plan if proper notice is given to the property owner, a public hearing is conducted and the local legislative body approves the action; and
Whereas, The Redevelopment Authority of the City of Milwaukee ("Authority") proposes to use its blight designation and acquisition authority pursuant to Section 66.1333(5)(c), Wisconsin Statutes, to acquire the properties at 2005 and 2101 West Walnut Street (Tax Key Nos. 364-2117-110-0 and 364-2107-110-6, respectively); and
Whereas, After providing proper notice to the property owner, the Authority held a public hearing on June 16, 2005, after which it determined that the subject properties are blighted within the meaning of Section 66.1333(4)(bm), Wisconsin Statutes, because their present condition, obsolete platting and open nature substantially arrest the sound growth and development of the community and the City of Milwaukee ("City"), as outlined in the Blight Designation Summary Report, a copy of which is attached to this Common Council File, and requested that the Common Council of the City of Milwaukee ("Common Council") approve this blight designation and acquisition; and
Whereas, Chapter 105 of the Laws of 1975 of the State of Wisconsin with amendments from other chapters of said laws created Section 66.1105, Wisconsin Statutes, titled "Tax Increment Law"; and
Whereas, Section 66.1105(4) of the Tax Increment Law sets forth certain criteria that the Common Council and the Authority must follow to create a Tax Incremental District ("District" or "TID") and approve a Project Plan for the District; and
Whereas, Pursuant to Section 66.1105(4)(a) through (gm), Wisconsin Statutes, the public hearing conducted by the Authority on June 16, 2005 designated the boundaries of the District; recommended that the District be created and submitted such recommendation to the Common Council for approval with the proposed Project Plan for Tax Incremental District No. 58, City of Milwaukee (the "Plan"), a copy of which is attached to this Common Council File; and
Whereas, Under the provisions of Section 66.1105(4)(gm)4.a., Wisconsin Statutes, not less than 50 percent, by area, of the real property within a proposed District must qualify as either a "blighted area" within the meaning of Section 66.1105(2)(a), Wisconsin Statutes; an area "in need of rehabilitation or conservation work" within the meaning of Section 66.1337(2m)(b), Wisconsin Statutes; or must be suitable for "industrial sites" within the meaning of Section 66.1101, Wisconsin Statutes, and be zoned for industrial use; and
Whereas, Property standing vacant for an entire seven-year period immediately preceding adoption of this resolution shall not exceed 25 percent, by area, of the District; and
Whereas, Based upon field survey and available public information and records, 100 percent (10.05 acres, more or less), by area, of the real property located within the proposed District, as identified in Exhibit 1 of the above referenced Plan, consists of properties which, in the aggregate, are blighted or in need of rehabilitation or conservation work, and, therefore, the District meets one of the criteria essential to creation of a District as set forth in Section 66.1105(4)(gm)4.a., Wisconsin Statutes; and
Whereas, The Plan contains statements and other factual information indicating that the improvement of the area is likely to enhance significantly the value of real property in the District, that project costs directly serve to promote the development of the District consistent with the purposes for which the District is created under 66.1105(4)(gm)4.a., Wisconsin Statutes, and that the aggregate value of equalized taxable property in the District plus the value increment of all existing Districts has been determined to be less than 12 percent of the total value of equalized taxable property within the City; and
Whereas, In order to implement the Project Plan, a Cooperation Agreement between the City and the Authority is required, a sample of which is attached to this Common Council File; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that it is found, determined and reaffirmed that:
1. The properties at 2005 and 2101 West Walnut Street (Tax Key Nos. 364-2117-110-0 and 364-2107-110-6, respectively) are blighted, in need of blight elimination, slum clearance and urban renewal and qualify as an eligible project within the meaning of Section 66.1333(4)(bm), Wisconsin Statutes.
2. The objectives of the Authority cannot be achieved solely through rehabilitation.
3. This acquisition is feasible and conforms to the Master Plan of the City.
4. Financial assistance to the Authority will be provided by Tax Incremental District No. 58 (20th and Walnut); and, be it
Further Resolved, That to implement and facilitate this acquisition, certain official action to support the new land use after redevelopment may be taken with general references, among other things, to changes in zoning; the vacation and removal of streets, alleys and other public ways; the location and relocation of sewer and water mains and other public facilities; and other public actions deemed necessary to effectuate the purpose of this acquisition including the prohibition of any new construction in the proposed easement area, and accordingly, the Common Council pledges its cooperation to carry out this acquisition; and, be it
Further Resolved, Regarding TID No. 58 (20th and Walnut), the Common Council finds and determines the following:
1. Not less than 50 percent, by area, of the real property within the proposed District, qualifies as "blighted" or "in need of rehabilitation or conservation work," within the meaning of Section 66.1105(4)(gm)4.a., Wisconsin Statutes.
2. The improvement and/or redevelopment of such area, as hereinafter provided, is likely to enhance significantly the value of substantially all of the other real property in and adjoining such District.
3. Project costs relate directly to eliminating blight and directly serve to promote development consistent with the City's Master Plan and with the purpose(s) for which this District is created under Section 66.1105(4)(gm)4.a., Wisconsin Statutes.
4. The percentage of the aggregate value of the equalized taxable property of the District plus the value increment of all existing Districts, has been determined to be less than the statutory maximum 12 percent of the aggregate value of total equalized value of taxable property within the City; and, be it
Further Resolved, That TID No. 58 (20th and Walnut), City of Milwaukee, is created as of January 1, 2005 and that the boundaries of said District are approved as described in the Plan; and, be it
Further Resolved, That the Plan is approved as the Project Plan for said District and that the Plan is feasible, in conformity with the Master Plan for the City and will promote the orderly development of the City; and, be it
Further Resolved, That the proper City officials are authorized to enter into a Cooperation Agreement with the Authority to implement the Plan, the form of which is substantially the same as attached to this Common Council File; and, be it
Further Resolved, That:
1. The City Clerk is authorized and directed to apply in writing 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 authorized and directed to identify upon the assessment roll, returned and examined under Section 70.45, Wisconsin Statutes, those parcels of property which are within TID No. 58 (20th and Walnut), City of Milwaukee, specifying thereon the name of the District.
b. The City Clerk is authorized and directed to make notations on the tax roll for the District similar to those required to be made under Section 70.65, Wisconsin Statutes.
c. The Commissioner of City Development is authorized and directed to act on behalf of the Common Council as coordinator of all Plan activities, which in his judgment are necessary to carry out the Plan and the intent of this resolution.
d. The City Comptroller is authorized and directed to transfer the sum of $2,191,650 plus capitalized interest (estimated at $219,166) from the Parent TID Account to the Project Account for the purpose of providing funds necessary to implement the Plan.
e. The City Comptroller, in conjunction with the Commissioner of City Development, is authorized and directed to perform such acts and to create such accounts and subaccounts and make appropriate transfers upon written request by the Department of City Development for all revenue or expenditure activity under this resolution.
f. The City Clerk is directed to transmit a certified copy of this Common Council resolution, along with a copy of the Plan, to the Commissioner of Public Works, the Commissioner of Neighborhood Services, the Commissioner of City Development, the Assessment Commissioner and the City Engineer, for administrative and/or informational purposes, respectively, and to the Joint Review Board established for the District.
Drafter
DCD:MP:mp
06/22/05