Number
231523
Version
ORIGINAL
Reference
Sponsor
THE CHAIR
Title
Resolution approving Amendment No. 6 to the Project Plan for Tax Incremental Financing District No. 48 (Park East), in the 3rd, 4th and 6th Aldermanic Districts, to allow donations to Tax Incremental Financing District No. 74 (North 35th Street and West Capitol Drive), in the 7th Aldermanic District, and authorizing additional public infrastructure expenditures within the one-half mile radius of the District 48 boundaries.
Analysis
Body
Whereas, On March 5, 2002, the Common Council of the City of Milwaukee adopted File No. 011182, which approved a Project Plan and created Tax Incremental District No. 48 (Park East) (the “TID 48”) (RACM Resolution No. 9347) to fund public infrastructure to encourage redevelopment of the former Park East Freeway Corridor; and
Whereas, On May 3, 2005, the Common Council adopted File No. 041514 (RACM Resolution No. 9708), which approved Amendment No. 1 to the TID 48 Project Plan; and
Whereas, On July 26, 2011, the Common Council adopted File No. 101297 (RACM Resolution No. 10295), which approved Amendment No. 2 to the TID 48 Project Plan; and
Whereas, On March 1, 2016, the Common Council adopted File No. 151547 (RACM Resolution No. 10604), which approved Amendment No. 3 to the TID 48 Project Plan; and
Whereas, On July 26, 2016, the Common Council adopted File No. 160418 (RACM Resolution No. 10621), which approved Amendment No. 4 to the TID 48 Project Plan; and
Whereas, On April 18, 2013, the Common Council adopted File No. 1221817 (RACM Resolution No. 10953), which approved Amendment No. 5 to the TID 48 Project Plan; and
Whereas, On September 1, 2009, the Common Council adopted File No. 090325 (RACM Resolution No. 10105), which approved a Project Plan and created Tax Incremental District No. 74 (North 35th Street and West Capitol Drive) (the “TID 74”) to assist in the redevelopment of the former Tower Automotive Site; and
Whereas, On July 22, 2014, the Common Council adopted File No. 140437 (RACM Resolution No. 10490), which approved Amendment No. 1 to the TID 74 Project Plan to reset TID 74’s base value; and
Whereas, To date, TID 74 has not created sufficient incremental revenue to recover the TID 74 project costs; and
Whereas, TID 48 and TID 74 remain in existence and have not been statutorily terminated; and
Whereas, City Department of City Development (“DCD”) staff recommended that TID 48’s Project Plan be amended under Wis. Stat. 66.1105 (4)(h)1, with approval by the Council, RACM and the Joint Review Board, and with the findings in 66.1105 (4)(g):
• to donate up to $11,750,950 from TID 48 to TID 74 by allocating positive tax increments from TID 48 to TID 74 for each of years 2024-2027 as allowed by Wis. Stat. 66.1105 (6)(f), and
• to also include using TID 48 increment to fund up to $6,000,000 in public infrastructure improvements and administration within a one-half mile radius of TID 48’s boundary as allowed by Wis. Stat. 66.1105 (2)(f)1.n. and by 66.1105 (4m)(d); and
Whereas, In accordance with those recommendations, Amendment No. 6 to the TID 48 Project Plan was prepared, a copy of which was submitted to this RACM File; and
Whereas, As Amendment No. 6 indicates, the proposed donation from TID 48 to TID 74 meets the requirements in Wis. Stat. 66.1105(6)(f) (TID 48 and 74 both were created by RACM and approved by the Council and TID 48 and 74 have the same overlying taxing jurisdictions, TID 74 was created upon a finding that not less than 50% by area of real property within TID 74 is blighted and in need of rehabilitation, TID 48 will first satisfy its current year debt service and project cost obligations before the allocation of increment from TID 48 to TID 74, and the life of TID 48 will not be extended), and Amendment No. 6 lists the proposed donation amounts and methodology to calculate those donation amounts; and
Whereas, Amendment No. 6 also lists the type of public infrastructure improvements to be made within the one-half mile radius of TID 48’s boundaries to be included as TID 48 project costs and shows the area that those improvements will be made in, all as allowed by Wis. Stat. 66.1105 (2)(f)1.n.; and
Whereas, Per Wis. Stat. 66.1105(4)(h)(l), on January 18, 2024, RACM conducted a public hearing, after required notice; now, therefore, be it
Resolved, By the Redevelopment Authority, by its Board, that Amendment No. 6 to the TID 48 Project Plan, as submitted to the RACM file, is approved and adopted; and, be it
Further Resolved, That the RACM Executive Director is directed to transmit copies of this resolution and said Amendment No. 6 to the Common Council for its approval; and, be it
Further Resolved, That, after approval by the Common Council and the Joint Review Board of Amendment No. 6, RACM officers are authorized to take such further action and to execute such further documents and instruments necessary to implement Amendment No. 6, including, without limitation, a Grant Agreement with Milwaukee Downtown, Inc. or Milwaukee County for park improvements, as applicable.
Requestor
Drafter
David Misky January 19, 2024