Number
040781
Version
SUBSTITUTE 1
Reference
031366
Sponsor
THE CHAIR
Title
Substitute resolution approving a Project Plan and creating Tax Incremental District No. 57 (Menomonee Valley East Project) in the 12th Aldermanic District.
Analysis
This substitute resolution approves a tax incremental district Project Plan to redevelop approximately 20 acres, owned or controlled by the City or Redevelopment Authority, at North 6th Street and West Canal Street. H-D Milwaukee, LLC, a company wholly owned by Harley-Davidson, proposes to develop a $95 million complex of buildings on these sites, including a museum, cafe, retail, banquet and restaurant space, archive and restoration structures and general office and/or commercial space. The complex will consist of 230,000 square feet of facilities to be developed in three phases over seven years, at an estimated cost of $95 million.
The creation of this tax incremental district Project Plan was approved, in principle, with the adoption of File No. 031366, on May 25, 2004, which file set forth the general terms and conditions for the proposed Harley-Davidson development.
The Project Plan provides for up to $7 million of funding for extraordinary site costs to be incurred in connection with the development. These costs include environmental remediation, dockwall repair and replacement, the incremental costs of supporting the proposed buildings on deep foundations, the cost of street vacations and utility relocations on the property and the cost of elevating the site above the floodplain. All of these funds will be advanced by the Developer and will be repaid by the City only from incremental tax revenue generated in the District. In addition, the cost of demolishing the structures presently on the site, which cost will be deducted from the City's sales price for the property, is included as a project cost. The estimated payback period for the proposed TID is 25 years.
Body
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 of the City of Milwaukee (“Common Council”) and the Redevelopment Authority of the City of Milwaukee (“Redevelopment 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 Redevelopment Authority conducted a public hearing on the creation of, the boundaries of and the Project Plan for the Menomonee Valley East Tax Incremental District, designated the boundaries of the District, recommended that the District be created and have submitted such recommendation to the Common Council for approval with the proposed Project Plan for Tax Incremental District No. 57, 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; must be suitable for “industrial sites” within the meaning of ss 66.1101, Wisconsin Statutes, and be zoned for industrial use; or, must be suitable for “mixed-use development” within the meaning of Section 66.1105(2)(cm); and
Whereas, Property standing vacant for an entire 7-year period immediately preceding adoption of this resolution and not suitable for “industrial sites” shall not exceed 25 percent, by area, of the District; and
Whereas, Based upon field survey and available public information and records, 57.4 percent, by area, of the real property in the District, as identified in Exhibit 2 of the Plan, consists of properties, which are “blighted areas” within the meaning of Section 66.1101 and, therefore, satisfies the requirements of Section 66.1105(4)(gm)4.a., Wisconsin Statutes; and
Whereas, Based upon available public information and records, 15.3 percent of the real property in the District, as identified in Exhibit 2 of the Plan, consists of property that are “vacant” within the meaning of Section 66.1105; and
Whereas, The Plan contains statements and other factual information indicating that the improvement of such area is likely to enhance significantly the value of real property in the District; that project costs directly serve to promote development of the District consistent with the purpose(s) for which the District is created under Section 66.1105(4)(gm)4.a., Wisconsin Statutes, and that the aggregate value of equalized taxable property of 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 of Milwaukee (the “City”); now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, regarding Tax Incremental District No. 57, City of Milwaukee, that it finds and determines as follows:
1. Not less than 50 percent, by area, of the real property within the District is a “blighted area” 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 such District.
3. Project costs relate directly to eliminating blight and promoting development consistent with the City's Master Plan and with the purpose(s) for which the 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 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 TID No. 57 is created as of January 1, 2005 and that the boundaries of the District recommended by the Redevelopment Authority are approved as described and more precisely set forth 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 found and determined to be 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 in accordance with Section 66.1105(4)(gm)6, Wisconsin Statutes, the District is declared to be a “blighted area district” based on the identification and classification of the property included within the District under Sections 66.1105(4)(c) and 66.1105(4)(gm)4.a., Wisconsin Statutes; and, be it
Further Resolved, That:
1. The City Clerk is authorized and directed to apply 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. 57, 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, or his/her designee, is authorized and directed to act on behalf of the Common Council as coordinator of all Plan activities, which in his/her judgment are necessary to carry out the Plan and the intent of this resolution.
3. A variance is authorized from the procedures of Common Council File No. 68-461-x, being the Guidelines for the Control of Capital Expenditures, and directs the City Comptroller to:
Establish the appropriate accounts within the TID No. 57 Project Account, No. 0336-1910-TD05780000, to appropriate tax increment collections equal to the total required to repay the Developer funding of up to $7,000,000 (plus City administrative costs) in such amounts as set forth in the Plan, plus interest thereon, as shall be necessary to implement the Plan.
4. The City Comptroller, in conjunction with the Commissioner of City Development, is authorized to establish all accounts and subaccounts and make all appropriation transfers upon request by the Department of City Development for all revenue or expenditure activity under this resolution.
Drafter
DCD:JS:js
10/12/04