Number
111034
Version
SUBSTITUTE 1
Reference
060420
Sponsor
ALD. PUENTE
Title
Substitute resolution approving an amendment to the Cooperation, Contribution and Development Agreement for Tax Incremental District No. 64 (Direct Supply), in the 9th Aldermanic District.
Analysis
This amendment will adjust certain employment goals set forth in the Cooperation, Contribution and Development Agreement with Direct Supply Inc. regarding its expansion on North Industrial Road. Employment has increased by over 200 positions since the start of the project, but due to the continuing weakness in the economy, employment is not expected to meet the milestones in the Agreement, as early as originally contemplated. Direct Supply currently has nearly 900 employees at this location. The purpose of the amendment will be to more accurately reflect anticipated employment levels given the current economy.
This is a “developer funded” TID. All TID funds have been advanced by Direct Supply’s landlord, KJ Greentree LLC, and are being repaid from actual tax incremental revenue generated by the project. In addition, to accommodate Direct Supply’s expansion needs, the Agreement provides Direct Supply with an option to purchase the DPW field office at 6660 and 6710 North Industrial Road. The proposed amendment delays Direct Supply’s right to exercise that option to a period between January 2014 and December 2019.
Body
Whereas, On July 31, 2006, the Common Council of the City of Milwaukee created Tax Incremental District (“TID”) No. 64 for the purpose of assisting Direct Supply, Inc. to expand at its current location on North Industrial Road. The TID provides reimbursement, but only from actual tax incremental revenue generated by the project, for extraordinary site costs incurred by Direct Supply’s landlord in connection with its plans to add approximately 500,000 square feet of office space to its campus; and
Whereas, The Cooperation, Contribution and Development Agreement (“Agree...
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