NUMB:
940118
VERS:
Substitute 1
XXBY:
Chair
TITL:
Substitute resolution approving an Amendment No. 3 to a Turnkey Development, Operating and Maintenance Agreement regarding a skywalk between the City of Milwaukee and Skywalk Associates.
ANLS:
-Analysis-
This resolution authorizes the execution of a third amendment to the Turnkey, Development, Operation and Maintenance Agreement entered into by the City of Milwaukee and Skywalk Associates on December 31, 1994 (the "Turnkey Agreement"). The Turnkey Agreement provides for the repayment by Skywalk Associates of certain costs relating to the construction of the skywalk that were initially paid with City funds. Currently, payments in the amount of $91,402.95 are due on December 2 of each year ending on December 2, 2017. The amendment reduces the annual interest rate on the balance owed for these costs from 10% to 6% to reflect current and projected prevailing market conditions and to conform to the City's established policy of revenue-neutrality respecting Skywalk loan assistance, but increases the amount of each payment to $91,718.23.
The outstanding cost recovery principal balance as of December 2, 1993 is $811,952.10. The effect of the amendment will be to retire the cost recovery obligation 11 years earlier, on December 2, 2006.
BODY:
Whereas, The City of Milwaukee ("Milwaukee") and Skywalk Associates ("Associates") on December 31, 1984 entered into a Turnkey Agreement, the purpose of which was to provide for the construction, maintenance and operation of an enclosed elevated pedestrian walkway joining the Henry S. Reuss Federal Plaza, the Hyatt Regency Hotel, and the Commerce Building (the "Skywalk"); and
Whereas, The Turnkey Agreement was amended twice on April 1, 1986 by two separate documents (the "First Amendment" and the "Second Amendment"); and
Whereas, Pursuant to the Turnkey Agreement and the First and Second Amendments, Associates constructed and conveyed th...
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