Number
060893
Version
Substitute 1
Reference
051132, 051144
Sponsor
ALD. HINES
Title
Substitute resolution approving a Project Plan and creating Tax Incremental District No. 66 (Metcalfe Park Homes), authorizing Contingent Borrowing and approving the terms of a Development Agreement and a Cooperation Agreement to implement the Project Plan, in the 15th Aldermanic District.
Analysis
This substitute resolution approves a Tax Incremental District Project Plan to provide $900,000 in financial assistance for the development of 30 new homes in the Metcalfe Park neighborhood under a “lease to own” program sponsored by the Milwaukee Urban League and Gorman & Company. In addition, the Tax Incremental District No. 66 Project Plan also creates a forgivable loan pool of $500,000 for exterior home improvements for property owners in the district. The Tax Incremental District is bounded by West Meinecke Avenue, West Center Street, North 27th Street and North 39th Street. This resolution also approves the terms of a Development Agreement with Metcalfe Park Homeowners Initiative, LLC, and a Cooperation Agreement with the Redevelopment Authority of the City of Milwaukee for the purposes of implementing the Project Plan.
Body
Whereas, Chapter 105 of the Laws of 1975 of the State of Wisconsin with amendments from other chapters of said Laws created Section 66.1105, Wisconsin Statutes, titled “Tax Increment Law;” and
Whereas, Section 66.1105(4) of the Tax Increment Law sets forth certain criteria that the Common Council of the City of Milwaukee (“Common Council”) and the Redevelopment Authority of the City of Milwaukee (“Authority”) must follow to create a Tax Incremental District (“District” or “TID”) and approve a Project Plan for a District; and
Whereas, Pursuant to Section 66.1105(4)(a) through (gm), Wisconsin Statutes, the Authority conducted a public hearing on the Project Plan, designated the boundaries of a District and recommended that the District be created and submitted such recommendation to the Common Council for approval with the proposed Project Plan for Tax Incremental District No. 66 (Metcalfe Park Homes), City of Milwaukee (the “Plan”), a copy of which is attached to this Common Council File; and
Whereas, Under the provisions of Section 66.1105(4)(gm)4.a., Wisconsin Statutes, not less than 50 percent, by area, of the real property within a proposed District must qualify as either a “blighted area” within the meaning of Section 66.1105(2)(a), Wisconsin Statutes; an area “in need of rehabilitation or conservation work” within the meaning of Section 66.1337(3), Wisconsin Statutes; or must be suitable for “industrial sites” within the meaning of Section 66.1101, Wisconsin Statutes, and be zoned for industrial use; and
Whereas, More than 50 percent, by area, of the real property in the District is “in need of rehabilitation and conservation work” within the meaning of Section 66.1337(3), Wisconsin Statutes, and, therefore, satisfies the requirements of Section 66.1105(4)(gm)4.a.3., Wisconsin Statutes; and
Whereas, The Plan contains statements and other factual information indicating that the improvement of such area is likely to substantially enhance the value of real property in the District; and that project costs directly serve to promote development of the District consistent with the purpose(s) for which the District is created under Section 66.1105(4)(gm)4.a., Wisconsin Statutes; and
Whereas, A Cooperation Agreement between the City of Milwaukee (“City”) and the Authority is required to implement the Plan, a sample of which is attached to this Common Council File; and
Whereas, Common Council File No. 051132 authorized the sale and issuance of General Obligation Corporate Purpose Bonds, which included $140,004,734 of bonds for Tax Incremental Purposes, including the anticipated use of $60,000,000 of Contingent Borrowing Authority; and
Whereas, The Common Council is desirous of authorizing Contingent Borrowing in the amount of $1,622,500 to provide funding for TID No. 66 expenditures; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, regarding the Tax Incremental District No. 66 (Metcalfe Park Homes), City of Milwaukee, that it finds and determines as follows:
1. The District is “in need of rehabilitation and conservation work” within the meaning of Section 66.1337(3), Wisconsin Statutes.
2. The improvement and/or redevelopment of such area, as hereinafter provided, is likely to enhance the value of real property in the District.
3. Project costs relate directly to promoting development consistent with the City of Milwaukee's (“City”) Master Plan and with the purpose(s) for which the District is created under Section 66.1105(4)(gm)4.a., Wisconsin Statutes.
4. The percentage of the aggregate value of the equalized taxable property of the District plus the incremental value of all other existing Districts does not exceed the statutory maximum 12 percent of the aggregate value of total equalized value of taxable property within the City; and, be it
Further Resolved, That TID No. 66 (Metcalfe Park Homes) is created as of January 1, 2007, and that the boundaries of the District recommended by the Authority are approved as described and more precisely set forth in the Plan; and, be it
Further Resolved, That the Plan is approved as the Project Plan for said District and that the Plan is feasible, in conformity with the Master Plan for the City and will promote the orderly development of the City; and, be it
Further Resolved, That the proper City officials are directed to enter into a Development Agreement for the purposes of implementing the Plan on terms substantially in accordance with the Term Sheet for the Project, a copy of which is attached to this Common Council File; and, be it
Further Resolved, That the proper City officials are directed to enter into a Cooperation Agreement with the Authority to implement the Plan; and, be it
Further Resolved, That:
1. The City Clerk is directed to apply to the Wisconsin Department of Revenue for a “Determination of Tax Increments and Tax Incremental Base,” for the District pursuant to the provisions of Section 66.1105(5), Wisconsin Statutes.
2. Pursuant to the provisions of Section 66.1105(5)(f), Wisconsin Statutes:
a. The Assessment Commissioner is directed to identify upon the assessment roll, returned and examined under Section 70.45, Wisconsin Statutes, those parcels of property, which are within TID No. 66 specifying thereon the name of the District.
b. The City Clerk is directed to make notations on the tax roll for the District similar to those required to be made under Section 70.65, Wisconsin Statutes.
3. The Common Council declares its purpose to issue general obligation bonds in an amount not to exceed $1,622,500 ($1,475,000 of Project Plan Costs plus capitalized interest of $147,500) for paying TID No. 66 expenditures using Contingent Borrowing Authority approved under Common Council File No. 051144.
4. The City Comptroller is directed to establish all accounts and to make all appropriation transfers upon request by the Department of City Development for all revenue or expenditure activity under this resolution.
Drafter
DCD:MP:mp
11/02/06