Number
252191
Version
ORIGINAL
Reference
040639, 090791, 130268, 141264, 150911, 170497, 220634, 241346
Sponsor
ALD. BAUMAN
Title
Resolution approving Amendment No. 8 to the Project Plan for Tax Incremental District No. 56 (Erie Jefferson), to allow donations to Tax Incremental District No. 89 (Garfield & North) and Tax Incremental District No. 106 (McKinley School), in the 4th Aldermanic District.
Analysis
The Common Council created Tax Incremental District No. 56 in 2004 by adoption of File No. 040639 to, among other things, increase public access to the Milwaukee River by construction of riverwalk and plazas, to provide assistance in funding for riverwalk improvements and to remove or improve obsolete railroad facilities. The district has been amended seven times to provide funds for public infrastructure improvements and to provide donations to distressed Tax Incremental Districts.
This resolution approves Amendment No. 8 to TID No. 56, which approves donations to Tax Incremental District No. 89 (Garfield & North), in the 6th Aldermanic District, and to Tax Incremental District No. 106 (McKinley School), in the 15th Aldermanic District.
Body
Whereas, The Common Council of the City of Milwaukee (“Common Council”) adopted File No. 040639 on September 23, 2004, which approved a Project Plan (“Plan”) and created Tax Incremental District No. 56, Erie Jefferson (“TID 56” or the “District”); and
Whereas, The Common Council adopted File No. 090791 on November 3, 2009, which approved Amendment No. 1 to the Project Plan for the District; and
Whereas, The Common Council adopted File No. 130268 on July 2, 2013, which approved Amendment No. 2 to the Project Plan for the District; and
Whereas, The Common Council adopted File No. 141264 on February 10, 2015 which approved Amendment No. 3 to the Project Plan for the District; and
Whereas, The Common Council adopted File No. 150911 on November 2, 2015 which approved Amendment No. 4 to the Project Plan for the District; and
Whereas, The Common Council adopted File No. 170497 on July 31, 2017 which approved Amendment No. 5 to the Project Plan for the District; and
Whereas, The Common Council adopted File No. 220634 on September 20, 2022 which approved Amendment No. 6 to the Project Plan for the District; and
Whereas, The Common Council adopted File No. 241346 on January 21, 2025 which approved Amendment No. 7 to the Project Plan for the District; and
Whereas, On November 22, 2016, the Common Council adopted File No. 160937 (RACM Resolution No. 10643), which approved a Project Plan and created Tax Incremental District No. 89 (Garfield & North)(“TID 89”) to assist in the redevelopment of the former Garfield School; and
Whereas, To date TID 89 has not created sufficient incremental revenue to recover the TID 89 project costs; and
Whereas, On September 22, 2020, the Common Council adopted File No. 200598 (RACM Resolution No. 10834), which approved a Project Plan and created Tax Incremental District No. 106 (McKinley School) (“TID 106”) to assist in the redevelopment of the former McKinley School; and
Whereas, To date TID 106 has not created sufficient incremental revenue to recover the TID 106 project costs; and
Whereas, TID 56, TID 89, and TID 106 remain in existence and have not been statutorily terminated; and
Whereas, The City of Milwaukee’s Department of City Development (“DCD”) staff recommended that TID 56’s Project Plan be amended under Wis. Stat. 66.1105(4)(h)1, with approval by the Common Council, RACM, and the Joint Review Board, and with the findings in 66.1105(4)(g), to accomplish the following:
• To donate up to $1,514,169 from TID 56 to TID 89 by allocating positive tax increments from TID 56 to TID 89 in 2026 as allowed by Wis. Stat. 66.1105(6)(f), and
• To donate up to $1,294,527 from TID 56 to TID 106 by allocating positive tax increments from TID 56 to TID 106 in 2026 as allowed by Wis. Stat. 66.1105(6)(f); and
Whereas, Pursuant to Section 66.1105(4)(h)(1), Wisconsin Statutes, on May 4, 2026, the Redevelopment Authority of the City of Milwaukee (“Authority”) conducted a public hearing on Amendment No. 8 to the Project Plan for the District (“Amendment No. 8”), approved Amendment No. 8 by resolution and submitted Amendment No. 8 to the Common Council for its approval, a copy of which is attached to this Common Council File; and
Whereas, As Amendment No. 8 indicates, the proposed donations from TID 56 to TIDs 89 and 106 meet the requirements in Wis. Stat. 66.1105(6)(f)(i) TIDs 56, 89, & 106 were created by RACM and approved by the Common Council; (ii) TIDs 56, 89, & 106 have the same overlying taxing jurisdictions; (iii) TIDs 89, & 106 were created upon a finding that not less than 50 percent by area of real property within the District is blighted and in need of rehabilitation; (iv) TID 56 will first satisfy its current year debt service and project cost obligations before the allocation of increment from TID 56 to TIDs 89
& 106; and (v) the life of TID 56 will not be extended, and Amendment No. 8 lists the proposed donation amounts and methodology to calculate those donation amounts; and
Whereas, Section 66.1105(4)(g) and (h)(1), Wisconsin Statutes, provides that an amendment to a Project Plan shall be approved by the Common Council with the adoption of a resolution, which contains findings that such amendment is feasible and in conformity with the Master Plan of the City of Milwaukee (“City”); and
Whereas, Per Section 66.1105(5)(b), Wisconsin Statutes, less than 35 percent of the territory within the TID will be devoted to retail business at the end of the expenditure period; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that it finds and determines as follows:
1. Amendment No. 8 retains the existing boundaries of the District and does not alter the number of properties within the District. Therefore, the findings made in File No. 040639, pursuant to Section 66.1105(4)(gm)l and 4, Wisconsin Statutes, are unchanged.
2. Amendment No. 8 revises the project costs to be supported by the District and revises the Economic Feasibility Report that is part of the Project Plan and makes related changes regarding the timing of project costs and methods of financing. The improvement and/or development of such area are/is likely to enhance significantly the value of substantially all of the other real property in and adjoining the District.
3. The project costs provided in Amendment No. 8 relate directly to promoting development consistent with the City's Master Plan and with the purpose(s) for which the District was created under Section 66.1105(4)(gm)4a, 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 Tax Incremental 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 Amendment No. 8 is approved and the Project Plan for the District, as amended, 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:
1. The City Clerk is directed to notify the Wisconsin Department of Revenue, in such form as may be prescribed by said Department, of the approval of this Amendment No. 8, pursuant to the provisions of Section 66.1105(5), Wisconsin Statutes;
2. The City Comptroller is directed to transfer the sum of $3,684,968, plus up to 10 percent for capitalized interest, from the Parent TID Account to Project Account No. TD05680000 for the purpose of providing funds necessary to implement Amendment No. 8;
3. The City Comptroller, in conjunction with the Commissioner of DCD, is directed to perform such acts as necessary to transfer the tax incremental revenue received by TID 56 to such accounts appropriate for TIDs 89 & 106, as shown in and contemplated by Amendment No. 8 and the calculation methodology reflected therein; and, be it
Further Resolved, That the proper City officials are directed to execute any documents or agreements necessary for the purposes of implementing Amendment No. 8 on terms substantially in accordance with the Development Agreement.
Drafter
DCD:Alyssa.Remington:aer
04/21/26/A