Number
240476
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution approving the Land Disposition Report and conveyance of the Redevelopment Authority properties at 2307-09 N. 6th Street, 2317-25 N. 6th Street, 616-20 W. North Avenue, 622 W. North Avenue, 626 W. North Avenue, 628-30 W. North Avenue, 2316-18 N. 7th Street and 2322 N. 7th Street, in the 6th Aldermanic District.
Analysis
Body
Whereas, The N. 7th Street-W. Garfield Ave. Redevelopment Plan was adopted in 1983; Amendment No. 1 was adopted in 1984, in part to eliminate blighting influences and to attract and promote African-American arts, entertainment and culture within the Redevelopment Plan boundary; and
Whereas, Amendment No. 2 to the N. 7th Street-W. Garfield Avenue Redevelopment Plan Project Area was adopted in 2005 to facilitate the Bronzeville Cultural and Entertainment District;
Whereas, The Redevelopment Authority of the City of Milwaukee (“RACM”) owns 2307-09 N. 6th Street, 2317-25 N. 6th Street, 616-20 W. North Avenue, 622 W. North Avenue, 626 W. North Avenue, 628-30 W. North Avenue, 2316-18 N. 7th Street and 2322 N. 7th Street (collectively, the “Properties”); and
Whereas, RACM listed the Properties for sale with a Request for Proposals; it being contemplated that the City property would be transferred to RACM to facilitate the redevelopment, so that all of the properties are under RACM ownership; and
Whereas, Six responses to the RFP were received and the Department of City Development (“DCD”) performed its due diligence regarding the proposals, convened a selection team comprised of City staff and other stakeholders, and subsequently narrowed selection of proposals to the top three finalists; and
Whereas, The top three finalists presented their proposals at the Bronzeville Advisory Committee (“BAC”) and the BAC unanimously recommended the proposal by FIT Investment Group and Lutheran Social Services (collectively referred to as the “Developer”); and
Whereas, On August 18, 2022, RACM approved Resolution No. 10920 authorizing the conveyance of the City-owned, tax-foreclosed property located at 616-18 W. North Avenue to RACM and granting FIT Investment Group, LLC (“FIT”) an Exclusive Right to Negotiate for the purchase and redevelopment of the Properties, allowing FIT to apply for Wisconsin Housing and Economic Development Authority (“WHEDA”) Low Income Housing Tax Credits (“LIHTC”);
Whereas, FIT was awarded LIHTC in 2023; and
Whereas, On October 19, 2023, RACM approved Resolution No. 10974 authorizing up to a $700,000 loan from the RACM EPA Brownfield Revolving Loan Fund to Bronzeville Apartments, LLC or an agreed upon affiliate to be applied towards the cost of remediating the Properties; and
WHEREAS, The redevelopment of the Properties is contemplated to include residential and commercial components (collectively referred to as “Bronzeville Creative Arts and Tech Hub”) comprising two condominium units, each a separate project for the purposes of ownership and financing; with Bronzeville Apartments, LLC acting as the initial purchaser of the Properties (the “Buyer”). It is contemplated that Buyer will retain ownership of the residential component, and Bronzeville Arts and Tech Hub, LLC will own the commercial component;
WHEREAS, the Bronzeville Creative Arts and Tech Hub will be a new multi-purpose development with an arts and technology hub, boutique café, and approximately 60 residential housing units, using, in part, Wisconsin Housing and Economic Development Authority (“WHEDA”) Low Income Housing Tax Credits (“LIHTC”) and other anticipated funding sources, including, without limitation, New Market Tax Credits, all as summarized in the Land Disposition Report and Due Diligence Checklist, copies of which are part of this RACM file; now therefore, be it
Resolved, That the RACM Board hereby approves the Land Disposition Report and Due Diligence Checklist, and so long as the City of Milwaukee Common Council also approves the Land Disposition Report, Due Diligence Checklist and conveyance, then RACM officials are authorized to negotiate and enter into a Purchase and Sale Agreement with the Buyer, or assignee (and, as applicable, with the City) for conveyance of the Properties to the Buyer to be developed and subsequently owned as described herein, and the RACM officials are further authorized to close on that transaction and to take such further actions as may be required to effectuate the intent of this resolution; and, be it
Further Resolved, That the RACM Board approves a four-month extension of the original nine-month Sunset Provision of the BCRLF Term Sheet, extending the Sunset date from July 19, 2024 to November 19, 2024; and be it
Further Resolved, That the Property sale proceeds, less sale and marketing expenses and a thirty percent (30%) disposition cost reimbursement to the RACM, shall be deposited into TID 59.
Requestor
Drafter
David Misky July 11, 2024