Number
190545
Version
ORIGINAL
Reference
971894, 990115, 000430, 131580, 161313
Sponsor
ALD. BAUMAN
Title
Resolution approving Amendment No. 5 to the Project Plan, approving an amendment to a Cooperation Agreement, and authorizing expenditures and additional funding for Tax Incremental District No. 37 (Grand Avenue), in the 4th Aldermanic District.
Analysis
Tax Incremental District No. 37 was created in 1998 to revitalize the downtown retail and commercial district anchored by the Grand Avenue retail center. Initially, the District assisted in the construction of the Courtyard by Marriott hotel, as well as public infrastructure improvements in the area totaling $2,500,000 in project costs. Amendment No. 1 to the District Project Plan was approved in 1999 and provided $9,400,000 towards the redevelopment of the former Marshall Field’s/Gimbels building into office, hotel and retail uses and is now known as the ASQ Center. Amendment No. 2 to the Plan was approved in 2000 and provided $5,000,000 towards the redevelopment of the Boston Store building into office, residential and retail uses. Amendment No. 3 to the Plan was approved in 2014 and provided $1,200,000 to Bon-Ton Stores, Inc. to assist in keeping its headquarters and the Boston Store department store in downtown Milwaukee. Amendment No. 4 to the Plan authorized funds for a number of projects and improvements surrounding the Grand Avenue mall complex: a facade grant to assist in the redevelopment of the Grand Theater ($750,000), a forgivable loan to Bon-Ton Stores, Inc. ($1,900,000), street improvement projects ($4,365,000), other public infrastructure improvement projects ($750,000) and administrative expenses ($100,000), totaling $7,865,000.
Amendment No. 5 authorizes an additional $3,000,000 in public infrastructure improvements for the reconstruction of North 2nd Street between West Wisconsin Avenue and North Plankinton Avenue.
Body
Whereas, On June 16, 1998, the Common Council of the City of Milwaukee (“Common Council”) adopted File No. 971894, which approved a Project Plan and created Tax Incremental District No. 37 (the “District”); and
Whereas, On June 22, 1999, the Common Council adopted File No. 990115, which approved Amendment No. 1 to the District Project Plan (“Plan”); and
Whereas, On November 8, 2000, the Common Council adopted File No. 000430, which approved Amendment No. 2 to the Plan; and
Whereas, On April 2, 2014, the Common Council adopted File No. 131580, which approved Amendment No. 3 to the Plan; and
Whereas, On February 7, 2017, the Common Council adopted File No. 161313, which approved Amendment No. 4 to the Plan; and
Whereas, Pursuant to Wisconsin Statutes, Section 66.1105(4)(h)l, on July 18, 2019, the Redevelopment Authority of the City of Milwaukee (“Authority”) conducted a public hearing on Amendment No. 5 to the Plan (“Amendment”), approved the Amendment by resolution and submitted the Amendment, a copy of which is attached to this Common Council File, to the Common Council for its approval; and
Whereas, Section 66.1105(4)(g) and (h)(1), Wisconsin Statutes, provides that an amendment to a Project Plan shall be approved by the Common Council with the adoption of a resolution, which contains findings that such amendment is feasible and in conformity with the Master Plan of the City of Milwaukee (“City”); now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that it finds and determines as follows:
1. The Amendment retains the existing boundaries of the District and does not alter the number of properties within the District. Therefore, the findings made in File No. 971894 pursuant to Sections 66.1105(4)(gm)l and 4, Wisconsin Statutes, are unchanged.
2. The Amendment revises the project costs to be supported by the District and revises the Economic Feasibility Report that is part of the Project Plan and makes related changes regarding the timing of project costs and methods of financing. The improvement and/or development of such area are/is likely to enhance significantly the value of substantially all of the other real property in and adjoining the District.
3. The project costs provided in the Amendment relate directly to promoting development consistent with the City's Master Plan and with the purpose(s) for which the District was 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 incremental value of all other existing Tax Incremental Districts within the City, does not exceed 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 the Amendment is approved and the Project Plan for the District, as amended, 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:
1. The City Clerk is directed to notify the Wisconsin Department of Revenue, in such form as may be prescribed by said Department, of the approval of this Amendment pursuant to the provisions of Section 66.1105(5), Wisconsin Statutes.
2. The City Comptroller is directed to transfer the sum of up to $3,000,000, plus capitalized interest for two years, if necessary, from the Parent Tax Incremental District Account to the Project Account No. 0336-1910-TD03780000 for the purpose of providing a portion of the necessary funding for implementation of the Amendment.
3. The City Comptroller is directed to perform such acts and to create such accounts and subaccounts and make appropriate transfers, upon request by the Department of City Development, for all revenue or expenditure activity under this resolution; and, be it
Further Resolved, That the proper City officials are directed to enter into and execute any additional documents and instruments necessary to carry out the purposes of the Amendment, including an amendment to the Cooperation, Reimbursement and Redevelopment Agreement to incorporate the additional public infrastructure grant of $3,000,000 related to the public infrastructure project.
Drafter
DCD:Dan.Casanova:dac
07/09/19/B