City of Milwaukee - File #: 130055

• File #: 130055
• Version: 3
• Type: Resolution
• Status: Passed
• File created: 4/30/2013
• In control: COMMON COUNCIL
• Final action: 5/21/2013
• Title: Substitute resolution regarding the 2011 Development Fund loan to Sweet Water Organics.
• Sponsors: ALD. ZIELINSKI
• Indexes: BUSINESS ENTERPRISES, DEVELOPMENT FUND

Date	Ver.	Action By	Action	Result	Tally
5/30/2013	3	MAYOR	SIGNED
5/21/2013	2	COMMON COUNCIL	AMENDED; Minutes note: Ald. Zielinski moved to amend Common Council Resolution Number 130055, a substitute resolution regarding the 2011 Development Fund loan to Sweet Water Organics, by inserting the following further resolved clause between the 2nd and 3rd “Further Resolved” clauses: “Further Resolved, That the Department of City Development shall obtain prior Common Council approval for any sale or lease agreements, or other arrangements for the disposition of Sweet Water Organics collateral; and, be it"	Pass	11:1
5/21/2013	3	COMMON COUNCIL	ADOPTED	Pass	11:1
5/13/2013	1	COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE	AMENDED; Minutes note: Individuals appearing: Martha Brown, Department of City Development Deputy Commissioner Jeremy McKenzie, Assistant City Attorney Ald. Perez moved to enter into the record a Sweet Water Organics, Inc. Board of Directors Informal Consent, submitted by Ms. Brown, into the record. There were no objections. Individuals from the public testifying: Jessie Hall, Imagine Aquaponics Michael Fecker, chef Molly Stanek, Imagine Aquaponics Michael Carriere, Milwaukee School of Engineering Ald. Zielinski moved to hold to the call of the chair. Ald. Zielinski withdrew this motion. There were no objections to the withdrawal of this motion. Ald. Zielinski moved to amend the resolution to direct the Department of City Development to take immediate and direct control of the assets but to hold off any sale of the assets for 30 days.	Pass	3:2
5/13/2013	2	COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE	RECOMMENDED FOR ADOPTION	Pass	4:1
5/9/2013	1	CITY CLERK	DRAFT SUBMITTED
5/8/2013	0	COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE	HEARING NOTICES SENT
5/8/2013	0	COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE	HEARING NOTICES SENT
4/30/2013	0	COMMON COUNCIL	ASSIGNED TO	Fail

Number
130055
Version
SUBSTITUTE 3
Reference
101375
Sponsor
ALD. ZIELINSKI
Title
Substitute resolution regarding the 2011 Development Fund loan to Sweet Water Organics.
Analysis
This substitute resolution accepts certain securitized assets in settlement of debt due to the City from Sweet Water Organics and directs the Department of City Development to dispose of those assets, with proceeds returned to a Development Fund revenue account, so it may be applied to the debt service fund.
Body
Whereas, Common Council File No. 101375 authorized the expenditure of $250,000 from the Development Fund in the form of a forgivable loan to Sweet Water Organics to assist the company to expand its operations in the Bay View neighborhood; and

Whereas, File No. 101375 approved a term sheet providing for forgiveness of the loan over a four-year period if the Borrower maintained stated employment levels; and

Whereas, The City of Milwaukee (“City”) and Sweet Water Organics entered into a Loan and Security Agreement (“Agreement”) in 2011; and

Whereas, Sweet Water Organics expended $206,699 of the loan, using the loan to fund capital expenditures, including the purchase of equipment and construction of an outdoor aquaponics system; and

Whereas, Sweet Water Organics achieved the required employment level in 2011, triggering forgiveness of one-fourth, $62,500, of the loan principal; and

Whereas, Sweet Water Organics employment in 2012 was sufficient to trigger forgiveness of an additional $6,994.05 of the loan principal; and

Whereas, The unspent portion of the loan, $42,829.70, was returned to the City on March 4, 2013, deposited in revenue account 987020 in fund 0339 with the original Development Fund project number UR03399402, and will be applied to the debt service fund, since this loan was financed with bond proceeds; and

Whereas, Sweet Water Organics has ceased production; and

Whereas, Sweet Water Organics has indicated that it does not have a source of revenue to...