Number
031578
Version
SUBSTITUTE 1
Reference
Sponsor
THE CHAIR
Title
Substitute resolution approving a Project Plan and creating Tax Incremental District No. 54 (Stadium Business Park) and approving the terms of a Cooperation Agreement to implement the Project Plan.
Analysis
This substitute resolution approves a tax incremental district Project Plan to redevelop a 17-acre site at 1745 South 38 Street. Formerly the Ampco Metal Company foundry, and now vacant following the bankruptcy of the company, the property will be redeveloped with four, multi-tenant, light industrial and distribution facilities having a total area of approximately 200,000 square feet and an estimated private investment of $11 million. The project will be developed by Real Estate Recycling, LLC, which has developed two similar buildings on nearby sites in West Milwaukee.
This project will use TID borrowing for up to $2.45 million, and brownfield grants of up to $800,000, for acquisition, demolition and environmental remediation expenses needed to clear the property, remediate environmental contamination and prepare it for redevelopment. The grants are anticipated from the Milwaukee County and the Wisconsin Department of Commerce. To facilitate the project, the developer will advance an amount equal to the expected grant funding and be reimbursed when the grants are awarded. The developer also will contribute $950,000 to purchase the site. If the grant funding does not amount to $800,000, the difference will be repaid to the developer from tax increment revenues, but only in the amount which exceeds the revenues guaranteed for the repayment of the City's $2.45 million of project costs. The developer will provide a completion guarantee.
The estimated payback period for the proposed TID is 20 to 23 years. Approximately 200 jobs are ultimately expected to be located on-site. The project is consistent with the goals of the Initiative for a Competitive Milwaukee by providi...
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