Number
050948
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. HAMILTON and WADE
Title
Substitute resolution approving a Project Plan and creating Tax Incremental District No. 62 (DRS Power & Control Technologies, Inc.), in the 1st Aldermanic District.
Analysis
This substitute resolution approves a tax incremental district Project Plan to assist in the upgrade and redevelopment of the DRS Power & Control Technologies facility at 4265 North 30th Street. DRS is a supplier of defense technology systems to the U.S. military and intelligence agencies, major aerospace and defense contractors and international military forces. Nationally, DRS employs 5,700 and has other facilities in New Jersey, Connecticut, California, Texas, Florida, Ohio, Pennsylvania, Massachusetts and Colorado.
In Milwaukee, DRS designs and manufactures power generation, conversion and distribution equipment for ship propulsion systems for the U.S. Navy and for industrial applications. DRS employs 370 people at this location, principally engineers, engineering technicians and skilled assemblers. Average wages for unionized manufacturing and testing positions at this site is $19/hour. Technical and administrative staff averages $34/hour.
DRS will invest $11.5 million to upgrade its 30th Street facility. The proposed tax incremental district will provide a forgivable loan to DRS for $1.5 million and fund $150,000 of grants to adjacent residential property owners for exterior improvements. The DRS loan will be recoverable if DRS does not maintain employment over a ten-year period of 450 full-time equivalent positions. To implement the residential grant program, the boundary of the district will be expanded in the very near future. The district is expected to recover all project costs within twenty-five 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 (“TID”) and approve a Project Plan for the TID; and
Whereas, Pursuant to Section 66.1105(4)(a) through (gm), Wisconsin Statutes, the Redevelopment Authority conducted a public hearing on the Project Plan for the DRS Power & Control Technologies, Inc. Tax Incremental District (“District”), designated the boundaries of the District, recommended that the District be created and submitted such recommendation to the Common Council for approval with a proposed Project Plan for the District (“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 TID 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; suitable for “industrial sites” within the meaning of Section 66.1101, Wisconsin Statutes, and be zoned for industrial use; or suitable for mixed-use development as defined in Section 66.1105(2)(cm), Wisconsin Statutes; 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, more than 50 percent, by area, of the real property in the District, as identified in Map 2 and Exhibit 1 of the Plan, consists of properties, which in the aggregate, are ”in need of rehabilitation or conservation work” within the meaning of Section 66.1337, Wisconsin Statutes, and, therefore, satisfies the requirements of Section 66.1105(4)(gm)4.a., Wisconsin Statutes; and
Whereas, Based upon available public information and records, zero percent of the real property in the District, as identified in Exhibit 1 of the Plan, consists of property that is “vacant” within the meaning of Section 66.1105, Wisconsin Statutes; 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
Whereas, The equalized value of taxable property of the District plus the incremental value of all other existing TID’s in the City of Milwaukee (“City”) is less than 12 percent of the total value of equalized taxable property within the City; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that it finds and determines as follows:
1. The District is “in need of rehabilitation and 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 such District.
3. Project costs relate directly to 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 incremental value of all other existing TID’s 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 District is created as of January 1, 2006 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 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 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 the District, 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.
3. The DRS Power & Control Technologies, Inc. Tax Incremental District shall be designated Tax Incremental District No. 62.
4. The City Comptroller is authorized and directed to transfer the sum of $1,700,000, plus capitalized interest (estimated at $170,000), from the Parent TID Account to the Project Account, TDO6280000, for the purpose of providing funds necessary to implement the Plan.
5. 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.
6. 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 Sheets contained in Exhibit 3 of the Plan.
Drafter
DCD:JS:js
11/22/05