Number
141277
Version
ORIGINAL
Reference
920836
931831
Sponsor
THE CHAIR
Title
Resolution approving agreement between City and U.S. Department of Commerce - Economic Development Administration concerning 611 West National Avenue.
Analysis
Adoption of this resolution by the Common Council of the City of Milwaukee will approve an agreement between the City and the U.S. Department of Commerce - Economic Development Administration concerning 611 West National Avenue, which parcel is now in property-tax foreclosure.
Body
Whereas, The Common Council, in Resolution File No. 920836, authorized the City to jointly apply, with Esperanza Unida, Inc. for a grant from the EDA to improve Esperanza’s building at 611 W. National Avenue (the “Parcel”), and directed that a Cooperation Agreement between the City and Esperanza be drafted, as required by the EDA as part of the EDA grant; and
Whereas, The Common Council, in Resolution File No. 931831, approved the Cooperation Agreement between the City and Esperanza, under which Esperanza was designated the Lead Entity for purposes of grant administration and under which Esperanza agreed to comply with statutory, program and administrative requirements in the grant; and
Whereas, The City and Esperanza did apply for the grant, and the EDA, on April 6, 1994, did award a $712,800 grant to be used as part of a $1,056,000 project to improve the first and second floors of the building at the Parcel; and
Whereas, Per the grant, Esperanza gave the EDA a mortgage in the Parcel that was to last for 25 years, until March 29, 2019, to secure possible payment to the EDA of a damage amount should Esperanza breach grant and mortgage conditions, with the payment to the EDA including the possibility of repayment of the grant, plus interest, or payment to the EDA of 67.5% of the fair market value of the Parcel; and
Whereas, EDA is concerned about compliance issues concerning the grant and mortgage conditions; and
Whereas, The Parc...
Click here for full text