Number
240530
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. BAUMAN
Title
Substitute resolution directing the Department of City Development to retain one or more consultants to analyze the feasibility of each of the proposals submitted in response to the Department’s Request for Proposals for redevelopment of the City-owned Marcus Center Parking Structure site.
Analysis
This resolution directs the Department of City Development to retain one or more consultants to analyze the feasibility of each of the three proposals submitted in response to the Department’s Request for Proposals for redevelopment of the City-owned Marcus Center Parking Structure site.
Body
Whereas, The City of Milwaukee owns the block bounded by East Highland Avenue, East State Street, North Water Street and North Edison Street; and
Whereas, This block is wholly occupied by the Marcus Center for the Performing Arts Parking Structure; and
Whereas, The Marcus Center Parking Structure, which itself is underutilized, represents an underutilization of this block and is far from being the highest and best use of this prime Downtown Milwaukee real estate; and
Whereas, Redevelopment of the 2.45-acre Marcus Center Parking Structure site presents opportunities to create employment, increase the city’s tax base, create additional housing units, enhance the city’s skyline, and bring additional activity and vitality to this part of Downtown; and
Whereas, In September, 2023, the Department of City Development (“DCD”) issued a Request for Proposals for redevelopment of the Marcus Center Parking Structure site; and
Whereas, DCD received three proposals for redevelopment of the Marcus Center Parking Structure site; and
Whereas, DCD has selected the proposal submitted by the Neutral Project, which is also attempting to develop a 32-story mass timber apartment tower at 1005 North Edison Street; and
Whereas, DCD is recommending that the Neutral Project be granted a one-year exclusive right to negotiate, subject to Common Council approval; and
Whereas, The Neutral Project’s proposal calls for a three-phase development that could include up to 752 housing units, 191,880 square feet of office space, 43,305 square feet of retail space, 315 hotel rooms, 1,186 structured parking spaces and 25,000 square feet of public plazas and walkways at a projected investment of over $714 million; and
Whereas, Due to the magnitude of this project and the importance of redevelopment of the Marcus Center Parking Structure site to the surrounding Downtown area and to Milwaukee as a whole, it is essential that the City choose a developer with a proven track record of similar projects and a development proposal that is feasible and likely to be successful; and
Whereas, The City does not have the subject-matter expertise to comprehensively evaluate the three proposal submitted in terms of financial feasibility, construction/technical factors, or likelihood to succeed in the real estate marketplace;
now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Department of City Development is directed to retain one or more consultants to analyze the feasibility of each of the proposals submitted in response to the Department’s Request for Proposals for redevelopment of the City-owned Marcus Center Parking Structure site; and, be it
Further Resolved, That the work of the consultant or consultants shall include, for each proposal and at a minimum, an analysis of:
1. The financial feasibility of the proposed project.
2. The technical feasibility (construction, engineering, etc.) of the proposed project.
3. The likelihood of success of the proposed project in the Downtown Milwaukee real estate market.
; and, be it
Further Resolved, That no consultant retained to carry out the intent of this resolution shall currently have, or have had at any time in the past five years, a formal, contractual relationship with the City or any of its departments or agencies; and, be it
Further Resolved, That no consultant hired to carry out the intent of this resolution shall be awarded any other contract with the City for a period of two years from the date of completion of the consultant’s work on this project.
Requestor
Drafter
LRB180068-2
Jeff Osterman
07/31/2024