NUMB:
971893
VERS:
SUBSTITUTE 1
REF:
931823
XXBY:
ALD. HENNINGSEN
TITL:
Substitute resolution authorizing the proper City officials to enter into a Development Agreement for the City Hall Square Office Building Project.
ANLS:
- Analysis -
This substitute resolution authorizes the proper City officials to enter into a Development Agreement with an affiliate of the Hammes Company for the development of a 51,000 square foot office building which will be located on the southwest corner of North Water Street and East Wells Street. The Development Agreement will provide for a $2.1 million second mortgage loan from the City which will be repaid over a period of 25 years. Other terms and conditions of the Development Agreement are outlined in the Term Sheet. In return, the affiliate of the Hammes Company will construct a 51,000 square foot office building which will be completed by December, 1999. This project is within the project area for Tax Incremental District No. 23, City of Milwaukee (City Hall Square). Incremental property taxes paid over the next 18 years will be used to further reduce the City's cost associated with the second mortgage loan.
BODY:
Whereas, The City of Milwaukee ("City") has created Tax Incremental District No. 23 ("TID No. 23") and pursuant to Common Council File No. 931485, adopted March 8, 1994, has approved the Project Plan for the District ("TID Plan"); and
Whereas, The City via Common Council File No. 931823, adopted November 4, 1996, has authorized the execution of a Cooperation Agreement for TID No. 23, pursuant to which the City would provide the Redevelopment Authority of the City of Milwaukee ("Authority") with funds to be used by the Authority to finance certain TID No. 23 costs set forth in the Cooperation Agreement; and
Whereas, The City via Common Council File No. 931822, adopted November 4, 1996, authorized execution of the Development Agreement with The Alexander Company, Inc., for the City Hall Square Project which included development of an office building, also known as Component III; and
Whereas, The office building component will be developed by the Hammes Company; 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 a Development Agreement with an affiliate of the Hammes Company for the development of the City Hall Square Office Building which is consistent with the terms and conditions outlined in Exhibit "A", a copy of which is attached to the Common Council File; and, be it
Further Resolved, That the City Attorney's Office in cooperation with the City Comptroller and the Commissioner of the Department of the City Development are directed to draft a Development Agreement which is consistent with the terms and conditions of Exhibit "A" and is mutually acceptable by the City Attorney, the City Comptroller, the Commissioner of the Department of City Development, and the Hammes Company; and, be it
Further Resolved, That the City Comptroller is authorized and directed to transfer $2,100,000 from the Tax Incremental District Parent Account No. 32-900-0000 to Subaccount No. 32-923-0002 for providing funds to the Authority under the terms of the existing Cooperation Agreement.
ZDPT:
DFTR:
DCD:DMcC:mnb
3/25/98