Number
110947
Version
ORIGINAL
Reference
030974, 100534, 110604
Sponsor
ALD. DONOVAN
Title
Resolution authorizing up to $700,000 in contingent borrowing for the Development Fund for economic development purposes, in the 8th Aldermanic District.
Analysis
This resolution authorizes up to $700,000 in contingent borrowing for the Development Fund to assist in further preparation of the Menomonee Valley Business Park for additional job creation and retention and an increase in property tax base.
Body
Whereas, The City of Milwaukee ("City") has an ongoing commitment to job creation and retention; and
Whereas, On November 25, 2003, the Common Council of the City of Milwaukee ("Common Council") adopted File No. 030974, which approved a Project Plan and created Tax Incremental District No. 53 (Menomonee Valley Business Park) ("TID No. 53" or the "District"); and
Whereas, The Department of City Development and the Redevelopment Authority of the City of Milwaukee utilized TID No. 53 to acquire and redevelop the former Milwaukee Road Shops Redevelopment Project Area into the Menomonee Valley Industrial Center and Community Park that thus far has resulted in significant tax base growth and job opportunities for City residents; and
Whereas, More specifically, TID No. 53 was leveraged with $12 million of grant funds to remediate environmental impacts, realign Canal Street, prepare developable areas for construction, create a stormwater treatment area, design and construct local roadways and sewers, install utilities and provide engineering oversight; and
Whereas, The City has sold property to seven businesses in the Menomonee Valley Industrial Center and Community Park for development that now has a tax district value of over $65 million with 1,100 jobs and it has two sales pending that will exceed the overall job goal of 1,300 jobs for the development; and
Whereas, A significant unknown in the overall development of the business park has been the geotechnical issues associated with the project area; and
Whereas, On September 20, 2011, the Common Council adopted File No. 110604, which approved Amendment No. 1 to the Project Plan for TID No. 53 ("Amendment No. 1"), as it relates to site preparation of the business park and provides approximately $800,000 of additional public funding to mitigate the geotechnical issues for the remaining developable sites and also provides the final environmental cap to the project area; and
Whereas, The additional funding provided by Amendment No. 1 does not cover the extraordinary costs associated with the geotechnical issues and environmental cap; and
Whereas, On September 20, 2011, the Common Council adopted File No. 100534, which approved the First Amendment to the Cooperation, Reimbursement and Redevelopment Agreement for the Harley-Davidson Museum Project that eliminated the requirement for the third phase of the museum development and provides a payment of $700,000 from the developer to the Development Fund for purposes of funding future redevelopment activity in the City; and
Whereas, Chapter 304-31 of the Milwaukee Code of Ordinances states that the Development Fund may be used to: provide grants or loans to projects that redevelop taxable property, resulting in tax base growth (a-1); fund infrastructure work to facilitate private investment, including the City's share of riverwalk development and streetscaping projects (a-2); fund environmental testing and brownfield remediation to facilitate private investment (a-3); and fund land acquisition, demolition and landscaping activities that improve the business environment (a-4); and
Whereas, The 2011 Budget includes $150,000,000, of contingent borrowing for purposes not contemplated at the time of the adoption of the budget; and
Whereas, The Common Council desires to use $700,000 of contingent borrowing for redevelopment purposes to provide the Development Fund with the necessary expenditure authority to utilize the developer payment referenced in this resolution for site preparation in the Menomonee Valley Business Park; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that up to $700,000 of contingent borrowing is authorized for purposes of economic development in the Menomonee Valley Business Park; and, be it
Further Resolved, That when the payment of $700,000 from the developer is received, these funds shall be deposited as revenues in the debt service fund; and, be it
Further Resolved, That the proper City officials are authorized to establish the appropriate accounts or funds to expend these funds.
Drafter
DCD:DM:dm
11/02/11/A