Number
230327
Version
ORIGINAL
Reference
031163, 200933, 211510
Sponsor
ALD. BROSTOFF
Title
Resolution authorizing the sale of the City-owned property at 1136-46 East North Avenue, in the 3rd Aldermanic District.
Analysis
This resolution authorizes the sale of City-owned Development Property at 1136-46 East North Avenue according to the conditions in a Land Disposition Report pursuant to Section 304-49-5 and 304-49-8, Milwaukee Code of Ordinances.
Body
Whereas, The City of Milwaukee (“City”) operated 1136-46 East North Avenue (the “City Parcel”) as a Department of Public Works Ward Yard until 1991; and
Whereas, The Common Council of the City declared the Property surplus for municipal needs by adopting Common Council File No. 031163; and
Whereas, In 2020, the Department of City Development (“DCD”) issued a Request For Proposal (“RFP”) for the City Parcel; and
Whereas, DCD received six submittals by the RFP due date, and DCD assembled a RFP review team to evaluate and score the RFP submittals based upon the review criteria stated in the RFP; and
Whereas, The RFP review team recommended the proposal submitted by General Capital Group LLP and KG Development Group LLC operating through GenCap KG North Ave 50, LLC (collectively the “Developer”) and GenCap KG 41, LLC or assigns, to design and develop the property with a mixed-use building; and
Whereas, The Developer has an accepted offer to purchase the two privately owned parcels at 1132 and 1164 East North Avenue (the “Private Parcels”) to acquire, combine and redevelop with the City Parcel a new mixed-use development; and
Whereas, The City Parcel and Private Parcels when combined represent the “Development Site” that will include a new mixed-use development with approximately 91-affordable housing units and a kitchen incubator used for educational training; and
Whereas, The Common Council of the City of Milwaukee approved Common Council File No. 200933 authorizing exclusive rights to negotiate for the Developer that allowed the Developer to submit an application to the Wisconsin Housing and Economic Development Authority (“WHEDA”) for Low Income Housing Tax Credits (“LIHTC”); and
Whereas, The Developer has been awarded WHEDA LIHTC and is seeking additional funding to finance the overall development of the Project Site;
now, therefore, be it
Resolved, That closing of this transaction is contingent upon Developer obtaining ownership of the Private Parcels, recording the Certified Survey Map and terminating the billboard lease on one of the Private Parcels; and be it
Further Resolved, That the Commissioner of DCD, or designee, is authorized to execute the Purchase and Sale Agreement with the Developer, or assigns, and to close the transaction in substantial conformance with the terms of the Land Disposition Report (“LDR”), a copy of which is attached to this Common Council File, including execution of any needed easements, releases of deed restrictions or other documents necessary to carry out the development as described in the LDR; and, be it
Further Resolved, That the sale proceeds, less sales and marketing expenses, incurred Redevelopment Authority of the City of Milwaukee (“RACM”) costs and a 30 percent disposition cost reimbursement to RACM, shall be credited to the City of Milwaukee General Fund.
Drafter
DCD:Matt.Haessly:mfh
06/20/23/A