Number
240657
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. PRATT
Title
Substitute resolution approving the Land Disposition Report and Due Diligence Checklist and authorizing acquisition and then sale of 6263 North Teutonia Avenue, in the 1st Aldermanic District.
Analysis
This substitute resolution, if the City of Milwaukee is successful in tax foreclosure, authorizes sale of the tax delinquent parcel at 6263 North Teutonia Avenue to Milwaukee Pallet, LLC. The property at 6263 North Teutonia Avenue is currently owned by Samoh-T, LLC, c/o Thomas J. McNeal and, as of August 2024, is tax-delinquent $984,803.43. The DNA Parcel is in the City’s 2024 No. 3 property foreclosure file and Milwaukee Pallet, LLC desires to acquire and redevelop the property.
Body
Whereas, The Department of City Development (“DCD”) conducted a historical land use investigation and found that the property at 6263 North Teutonia Avenue (the “DNA Parcel”) historically was operated as Delta Resins & Refractories that historically handled materials that have impacted the environmental conditions at the DNA Parcel resulting in DCD placing the DNA Parcel on DCD’s brownfield list of Do Not Acquire properties; and
Whereas, DCD received an unsolicited offer to purchase the DNA Parcel from Milwaukee Pallet, LLC (the “Buyer”); and
Whereas, The Buyer (or assigns) is willing to purchase the DNA Parcel and renovate the DNA Parcel as Milwaukee Pallet LLC’s headquarters and put the DNA Parcel back onto the tax rolls and back into productive reuse, so the Buyer can continue to expand his business in Milwaukee; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee (“Common Council”), that the Common Council approves the Land Disposition Report (“LDR”) that is part of this file, and per Milwaukee Code of Ordinances 308-22-2, authorizes City of Milwaukee (“City”) acquisition of the DNA Parcel so that, if the City is successful with its tax foreclosure, the DNA Parcel may be immediately conveyed to Buyer on an “as is, where is” basis per the LDR, and the Common Council authorizes appropriate City officials to sign and enter into an Offer to Purchase with Buyer materially consistent with the LDR and to take the acts contemplated hereby and thereunder; and, be it
Further Resolved, That the Commissioner of DCD, or designee, is authorized to execute the Purchase and Sale Agreement with the Developer, or assigns, and to close the transaction in substantial conformance with the terms of the LDR, a copy of which is attached to this Common Council File, including execution of any needed easements, releases of deed restrictions or other
documents necessary to carry out the development as described in the LDR; and, be it
Further Resolved, That the sale proceeds, less sales and marketing expenses, incurred Redevelopment Authority of the City of Milwaukee (“RACM”) costs and a 30 percent disposition cost reimbursement to RACM, shall be credited to the City of Milwaukee Delinquent Tax Fund.
Drafter
DCD:Matt.Haessly:mfh
09/09/24