City of Milwaukee - File #: 051108

• File #: 051108
• Version: 2
• Type: Resolution
• Status: Passed
• File created: 12/13/2005
• In control: ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE
• Final action: 2/7/2006
• Title: Substitute resolution approving Amendment No. 1 to the Project Plan for Tax Incremental District No. 41 (Time Warner Riverwalk), in the 3rd Aldermanic District.
• Sponsors: ALD. D'AMATO, ALD. HINES JR.
• Indexes: RIVERWALKS, TAX INCREMENTAL DISTRICTS

Date	Ver.	Action By	Action	Result	Tally
2/13/2006	1	MAYOR	SIGNED
2/10/2006	2	CITY CLERK	DRAFT SUBMITTED
2/7/2006	1	COMMON COUNCIL	AMENDED; Minutes note: 1. Amend the term sheet to increase the tax incremental financing by $250,000 to fund a job-training program for city residents under the direction of the Department of Administration. 2. I move to amend CCFN 051108 by inserting one additional Further Resolved clause immediately preceding the existing final Further Resolved clause, as follows: "Further Resolved, That the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as provided by the Common Council on February 7, 2006; and, be it"	Pass	13:1
2/7/2006	1	COMMON COUNCIL	AMENDED; Minutes note: Amend the term sheets to increase the tax incremental district project costs up to $125,000 to release an RFP for the purpose of contracting with an accounting firm to monitor the scope of services, budget and expenditures, and, conduct an evaluation and monitoring of the construction contractor's compliance with the Emerging Business Enterprise (EBE), Residence Preference Program (RPP) and apprenticeship requirements for the entire project with the firm reporting directly to the Common Council and the Comptroller's Office.	Fail	1:12
2/7/2006	1	COMMON COUNCIL	AMENDED; Minutes note: Require a minimum EBE participation rate of 25% and a minimum RPP participation rate of 25% for building hard cost contracts and agreements.	Fail	1:12
2/7/2006	1	COMMON COUNCIL	AMENDED; Minutes note: Require a minimum EBE participation rate of 25% and a minimum RPP participation rate of 25$ for technology FF&E contract and agreements.	Fail	1:13
2/7/2006	1	COMMON COUNCIL	AMENDED; Minutes note: Require the developer to comply with the 25% EBE rate of participation and the 25% RPP rate of participation. If the developer is unable to meet the requirements, but not the goals, the developer shall contribute to the city the difference between the monetary value of the requirement and the monetary value of the actual achievement. Funds received by the city shall be deposited in a special purpose account to be designated to fund job-training programs in the city.	Fail	1:13
2/7/2006	1	COMMON COUNCIL	ADOPTED	Pass	13:1
2/7/2006	1	COMMON COUNCIL	AMENDED; Minutes note: Amend the term sheets to provide that only trade workers shall be counted toward the developer's efforts to meet the RPP goals.	Fail	2:12
2/7/2006	1	COMMON COUNCIL	AMENDED; Minutes note: Amend the term sheets to require the developer to provide quarterly EBE reports to the Common Council.	Fail	1:13
1/31/2006	0	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	AMENDED; Minutes note: Speakers: Common Council President Hines Rocky Marcous - Commissioner of the Dept. of City Development Jim Scherer and Joel Brennan - Redevelopment Authority Bruce Block - represents RiverBend Place Gary Grunau - represents RiverBend Place Margaret Gerstenkorn - Director of Communications for Manpower Wally Morics - Comptroller Jim Scherer, from the Dept. of City Development, will ask SB Friedman if a quick study can be done prior to the 2/7/06 Council meeting related to the "multiplier effect" of the jobs/retail connection. Mike Daun - Comptroller's Office Ald. Joe Davis Bob Greenstreet - Dept. of City Development Ald. Michael McGee Supporters: John Morgan - Service Employees International Union 1 Gerard Randall - Private Industry Council Denae Davis - Brewers Hill resident Carla Cross - resident at 1815 N. 4th St., who will also be coordinating with Manpower related to the RPP and EBE goals, and local real estate developer in the area. Joe Tucker - President and Founder of Victory Personnel Services Stephen Adams - didn't speak, but in support Genyne Edwards - didn't speak, but in support Doug Neilson - President of Visit Milwaukee Beth Nichols - Downtown Business Improvement District Ms. Nichols provided a roster of "Coalition for Milwaukee Jobs" (Exhibit 1) Pat O'Brien - Milwaukee Development Coalition/MMAC Dick Lincoln - Barry Mandel and the Mandel Group Dexter Martin - African-American Chamber of Commerce Teague Walllie Smith - Director of the Historic King Dr. Improvement District David Rotter - National Ace Hardware Einar Tangen - Historic Third Ward Association J. Allan Stokes - 2195 N. 2nd St. - Inner City Redevelopment Corp. and member of the City Plan Commission Tom Gartner - City Attorney's Office Opposed: Chris Kliesmet - 9272 N. Thrush Lane - Citizens for Responsible Government Motion by Ald. Michael McGee to amend Common Council File Number 051108 and the term sheets relating thereto: 1. I move to amend the term sheets to require the developer comply with the 25% EBE rate of participation and 25% RPP rate of participation. If the developer is unable to meet the requirements, but not the goals, the developer shall contribute to the city the difference between the monetary value of the requirement and the monetary value of the actual achievement. Funds received by the city shall be deposited in a special purpose account to be designated to fund job-training programs in the city. 2. I move to amend CCFN 051108 by inserting one additional Further Resolved clause immediately preceding the existing final Further Resolved clause, as follows: Further Resolved, That the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as approved by the Zoning, Neighborhoods and Development Committee on January 31, 2006; and, be it	Fail	1:4
1/31/2006	1	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	AMENDED; Minutes note: Motion by Ald. Michael McGee to amend Common Council File Number 051108 and the term sheets relating thereto: 1. I move to amend the term sheets to require a minimum EBE participation rate of 25% and a minimum RPP participation rate of 25% for Technology FF&E contracts and agreements. 2. I move to amend CCFN 051108 by inserting one additional Further Resolved clause immediately preceding the existing final Further Resolved clause, as follows: Further Resolved, That the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as approved by the Zoning, Neighborhoods and Development Committee on January 31, 2006; and, be it	Fail	1:4
1/31/2006	1	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	RECOMMENDED FOR ADOPTION	Pass	5:0
1/31/2006	1	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	AMENDED; Minutes note: Motion by Ald. Michael McGee to amend Common Council File Number 051108 and the term sheets relating thereto: 1. I move to amend the term sheets to increase the tax incremental financing by $500,000 to fund a job-training program whereby $250,000 funds Milwaukee Metropolitan Sewerage District Business Development Training Program and $250,000 funds the Wisconsin Minority Business Opportunity Center Accounting Services Program. 2. I move to amend CCFN 051108 by inserting 2 additional Whereas clauses immediately preceding the existing final Whereas clause, as follows: Whereas, Tax incremental districts job-training components promote economic growth through comprehensive business development models that bring resources and businesses together; and Whereas, The MMSD Business Development Training Program mentor-protégé relationships model and the Wisconsin Business Opportunity Center comprehensive information and servicing model have been honored for connecting minority and mainstream businesses; and, be it 3. I move to amend CCFN 051108 by inserting one additional Further Resolved clause immediately preceding the existing final Further Resolved clause, as follows: Further Resolved, That the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as approved by the Zoning, Neighborhoods and Development Committee on January 31, 2006; and, be it	Fail	1:4
1/31/2006	1	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	AMENDED; Minutes note: Motion by Ald. Michael McGee to amend Common Council File Number 051108 and the term sheets relating thereto: 1. I move to amend the term sheets to require a minimum EBE participation rate of 25% and a minimum RPP participation rate of 25% for Building hard cost contracts and agreements. 2. I move to amend CCFN 051108 by inserting one additional Further Resolved clause immediately preceding the existing final Further Resolved clause, as follows: Further Resolved, That the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as approved by the Zoning, Neighborhoods and Development Committee on January 31, 2006; and, be it	Fail	1:4
1/31/2006	1	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	AMENDED; Minutes note: Motion by Ald. Michael McGee to amend Common Council File Number 051108 and the term sheets relating thereto: 1. I move to amend the term sheets to increase the tax incremental district project costs up to $125,000 to release an RFP for the purpose of contracting with an accounting firm to monitor the scope of services, budget and expenditures, and, conduct an evaluation and monitoring of the construction contractor's compliance with the Emerging Business Enterprise (EBE), Residence Preference Program (RPP) and apprenticeship requirements for the entire project with the firm reporting directly to the Common Council and the Comptroller’s Office. 2. I move to amend CCFN 051108 by inserting one additional Further Resolved clause immediately preceding the existing final Further Resolved clause, as follows: Further Resolved, That the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as approved by the Zoning, Neighborhoods and Development Committee on January 31, 2006; and, be it	Fail	2:3
1/31/2006	1	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	AMENDED (WITHDRAWN); Minutes note: Motion by Ald. Michael McGee to amend Common Council File Number 051108 and the term sheets relating thereto: 1. I move to amend the term sheets to require the establishment of a minority incubator occupying at least 5,000 sq. ft. of office space in the North PowerHouse with tenancy primarily for businesses that are at least 51 percent minority-owned coming from the block grant area. 2. I move to amend CCFN 051108 by inserting one additional Further Resolved clause immediately preceding the existing final Further Resolved clause, as follows: Further Resolved, That the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as approved by the Zoning, Neighborhood and Development Committee on January 31, 2006; and, be it Ald. Wade withdrew the amendment at the request of Ald. McGee.
1/23/2006	0	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	HEARING NOTICES SENT
1/23/2006	0	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	HEARING NOTICES SENT
12/13/2005	0	COMMON COUNCIL	ASSIGNED TO

Number

051108

Version

SUBSTITUTE 2

Reference

000428

Sponsor

ALD. D’AMATO and HINES

Title

Substitute resolution approving Amendment No. 1 to the Project Plan for Tax Incremental District No. 41 (Time Warner Riverwalk), in the 3rd Aldermanic District.

Analysis

The Common Council created Tax Incremental District No. 41 in 2000 for the purpose of facilitating redevelopment efforts in an area generally bounded by North King Drive, West McKinley Avenue, West Pleasant Street and the Milwaukee River. Funding was to be provided for the City’s share of riverwalk improvements from McKinley to Cherry Streets ($4,000,000) and for streetscaping, landscaping and plaza improvements ($3,000,000). The key private investments contemplated by the Project Plan were the conversion of the former We Energies power plant into offices for occupancy by Time Warner, Inc., and the development of the Harley-Davidson museum in the former Schlitz Brew House.

The Time Warner facility was constructed by 2001 and the 150,000 square foot office building is now home to 850 employees. The Harley-Davidson museum was not constructed due to difficulties in renovating the historic Brew House structure, but is now in the early stages of development at a site at West 6th and Canal Streets.

TID No. 41 has incurred project costs, to date, of $2,559,000, all for riverwalk improvements, and interest expense, related to the Time Warner project. The TID has achieved an increase in incremental property value of $38.5 million, and the TID fund for the project has a surplus balance of $1.1 million.

Amendment No. 1 to the Project Plan for TID No. 41 will provide $20.6 million for the purposes of constructing a parking ramp, skywalk, riverwalk and access road, as well as provide $4.7 million of loans and grants, all to provide financial assistance for a new 280,000 square foot office facility to be leased by Manpower, Inc., for its new World Headquarters. In addition, $250,000 will be provided for a job-training program. The initial term of the lease is seventeen years, and the company has options to extend for an additional twenty years. The Manpower facility has an estimated cost of $79 million. In addition, an adjacent facility, the North Powerhouse, will be renovated into offices at a cost of $9.5 million. Initial employment at Manpower is expected to be approximately 1,000. The company expects to add 300 positions over the next five years. The facility is designed to be expanded to accommodate additional employees.

The TID, as amended, is expected to recover its project costs in twenty to twenty-two years.

While Amendment No. 1 represents $25.55 million of City assistance, since only $2.3 million of the original budget of $7 million has been expended for capital costs, the overall net increase in the Project Plan as a result of Amendment No. 1 is $20.9 million, including administration costs.

Body

Whereas, The Common Council of the City of Milwaukee (“Common Council”) on September 22, 2000, adopted File No. 000428 approving a Project Plan and creating Tax Incremental District No. 41 (Time Warner/Riverwalk)(“District”); and

Whereas, Pursuant to Section 66.1105(4)(h)(l), Wisconsin Statutes, the Redevelopment Authority of the City of Milwaukee conducted a public hearing on Amendment No. 1 to the Project Plan for the District (“Amendment”), approved such Amendment by resolution, and submitted such 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. 000428, pursuant to Section 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.

3. 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 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 by the Common Council, and that the Project Plan for said 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 the appropriate city officials including the City Attorney, Commissioner of City Development, and the City Comptroller, are directed to negotiate with the developer to fulfill the intent of the motions to amend the term sheets as approved by the Common Council on February 7, 2006; and, be it

Further Resolved, That:

1. The City Clerk is authorized and 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 authorized and directed to transfer the sum of $25,550,000, plus capitalized interest (estimated at 10 percent of the aforementioned amount, less available surplus funds in the Project Fund for TID No. 41), from the Parent TID Account to Project Account No. TDO4180000, for the purpose of providing funds necessary to implement the Amendment.

3. The City Comptroller, in conjunction with the Commissioner of the Department 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.

4. The proper City officials are authorized and directed to enter into a Development Agreement for the District on terms substantially in accordance with those set forth in the Term Sheet contained in Exhibit 1 of the Amendment.

Drafter

cc-cc/lme

03/31/06