NUMB:
970599
VERS:
SUBSTITUTE 1
REF:
XXBY:
ALD. WITKOWIAK
TITL:
Substitute resolution authorizing the execution of Amendment No. 2 to the Cooperation Agreement between the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee, and the Milwaukee Economic Development Corporation for The Tannery Project in Tax Incremental District No. 26.
ANLS:
- Analysis -
This substitute resolution authorizes a loan of $880,000 to assist in financing the renovation of the former Bottling House building at The Tannery complex in TID No. 26. The building, at 748 West Virginia Street will be converted into 70,000 square feet of office space for The Sunstone Financial Group, Inc. In addition, the developer, Atlas Development Corporation, will be constructing a 378 stall parking ramp at South 6th and West Bruce Streets for the purposes of providing parking to tenants in the Bottling House and other adjacent properties in The Tannery complex. Finally, the Amendment authorizes an additional net increase in funding for the Phase IV project (Timbers Building) at The Tannery. This will provide financing for additional tenant improvements and adjacent site work.
BODY:
Whereas, The City of Milwaukee ("City"), the Redevelopment Authority of the City of Milwaukee ("RACM"), and the Milwaukee Economic Development Corporation ("MEDC") entered into a Cooperation Agreement for The Tannery Project in Tax Incremental District No. 26 ("TID No. 26") as of February 27, 1996; and
Whereas, The Project Plan for TID No. 26 authorizes up to $5.4 million of loans to assist in financing the conversion of this former industrial complex into 350,000 square feet of offices and 101 loft apartments, a project estimated to cost $38.4 million; and
Whereas, The City, RACM, and MEDC also entered into Amendment No. 1 to the Cooperation Agreement as of October 1, 1996, which authorized funding for the Phase IV project (Timbers Building) at The Tannery complex; and
Whereas, As of today, MEDC has loaned the following amounts for the following Phases in the Project:
Phase I: $930,000
Phase II: $290,000
Phase III: $255,000
Phase IV: $694,000 (authorized up to $750,000)
; and
Whereas, Phase V of the Project consists of a renovation of the Bottling House building, a 3-story, 70,000 square foot facility at 748 West Virginia Street. The project will be renovated into office space for The Sunstone Financial Group, Inc.; and
Whereas, Amendment No. 2 to the Cooperation Agreement authorizes MEDC to advance funds to be secured by a second mortgage on the Phase V project, on terms more specifically set forth in Exhibit B-3 to this Amendment in the maximum amount of $880,000; and
Whereas, Amendment No. 2 further authorizes a net increase of funding for the Phase IV development (Timbers Building) in the amount of $585,000 for the purposes of financing tenant improvements and adjacent site improvements; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee that the proper City officials are authorized and directed to execute Amendment No. 2 to the Cooperation Agreement for The Tannery Project in Tax Incremental District No. 26, a copy of which is attached to this Common Council File, with such minor, non-substantive modifications as may be approved by the City Comptroller and the Office of the City Attorney.
ZDPT:
DFTR:
DCD/JS/arj
07/14/97of the City Attorney.
ZDPT:
DFTR:
DCD/JS/arj
07/14/97