Number
181916
Version
ORIGINAL
Reference
Sponsor
ALD. MURPHY
Title
Resolution authorizing acquisition and then sale of 629 South 89th Street, in the 10th Aldermanic District.
Analysis
This resolution authorizes the City to acquire 629 South 89th Street by property tax foreclosure; it authorizes the City to accept a contingent, unsolicited offer from Abraham Holdings LLC to purchase the property from the City after acquisition; and it approves the Land Disposition Report regarding the transaction.
Adoption of this resolution requires a 3/4 vote of the Common Council per the Milwaukee Code of Ordinances Section 308-22-2-c.
Body
Whereas, The property at 629 South 89th Street (the “Kalkounos Property”) is in the City of Milwaukee’s (“City”) 2019 No. 1 property tax foreclosure file, Circuit Court Case No. 19-CV-0002034; and
Whereas, The Department of City Development (“DCD”) conducted a historic check of the Kalkounos Property that identified underground storage tanks and uses that typically handle, use, store, generate and/or dispose of hazardous wastes and/or materials; and
Whereas, DCD received an unsolicited offer to purchase the Kalkounos Property from Abraham Holdings LLC (“AHLLC”), or assigns, because on the Kalkounos Property is a tax-delinquent, vacant building that is in poor condition and is a blighting influence on the neighborhood; and
Whereas, AHLLC owns the adjoining property at 615 South 89th Street (the “Warehouse-Lighting Property”) that it uses for its industrial, commercial and residential lighting warehouse business; and
Whereas, AHLLC wishes to acquire the Kalkounos Property so that it may demolish approximately 18,000 square feet of the blighted building and then improve that area with landscaping and a new parking lot, and it intends to renovate the remaining 8,000 square feet of the blighted building for office space for its business; and
Whereas, DCD prepared a Land Disposition Report and a Due Diligence Checklist, copies of which are attached to this Common Council File, concerning the acquisition and conveyance of the Kalkounos Property; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that it approves said Land Disposition Report; and, be it
Further Resolved, That it approves City completion of tax foreclosure against the Kalkounos Property and City acquisition of same by a 3/4 vote of the Common Council per the Milwaukee Code of Ordinances Section 308-22-2-c; and, be it
Further Resolved, That if the City is able to acquire title to the Kalkounos Property, the Common Council authorizes City entry into the offer to purchase, in a form materially consistent with the Land Disposition Report, and City conveyance of the Kalkounos Property to AHLLC so that blighting influences may be reduced and that AHLLC may undertake the improvement project set forth in the offer; and, be it
Further Resolved, That the appropriate City employees are authorized to take such further actions, as may be necessary, to effectuate the intent of this resolution and the transaction contemplated by the Land Disposition Report; and, be it
Further Resolved, That the sale proceeds, less sale and marketing expenses and a 30 percent disposition fee to the Redevelopment Authority of the City of Milwaukee, shall be credited to the Delinquent Tax Fund.
Drafter
DCD:Matt.Haessly:mfh
03/26/19/A