Number
111405
Version
SUBSTITUTE 2
Reference
Sponsor
ALD. KOVAC, HAMILTON, COGGS and WADE
Title
Substitute resolution authorizing a Purchase, Sale and Development Agreement for the East Library at 1910 East North Avenue with HSI Properties, LLC to approve sale of the property, redevelopment of a mixed-use building and acquisition of the new East Library condominium unit, in the 3rd Aldermanic District.
Analysis
This substitute resolution authorizes the sale of the City-owned East Library at 1910 East North Avenue for redevelopment and approves the acquisition of a new East Library Condominium according to the conditions in a Land Disposition and Acquisition Report. This resolution also authorizes an Option to Purchase for the new East Library Condominium in the event the unit becomes surplus to municipal needs according to the conditions in the Purchase, Sale and Development Agreement.
Body
Whereas, The Milwaukee Public Library ("MPL") with assistance from the Department of City Development ("DCD") published a Request for Proposal ("RFP") for the sale and redevelopment of the City of Milwaukee ("City") East Library at 1910 East North Avenue; and
Whereas, The RFP offered the current library property for sale at a nominal cost in exchange for a redevelopment that will provide the shell for a new East Library at no cost to the City under established conditions and that will include a secondary use that will complement MPL patrons, the East North Avenue Business District and East Side residents; and
Whereas, Three conceptual proposals were received before the established deadline and were presented to the MPL Board of Trustees and the public for comment after which the MPL Board of Trustees requested that the three developers prepare more detailed submissions for MPL review and selection; and
Whereas, After a public meeting on the revised submittals, the MPL Board of Trustees selected the proposal submitted by HSI Properties, LLC ("HSI") as the development proposal that best met MPL and community needs and City redevelopment requirements as summarized in a Land Disposition and Acquisition Report, a copy of which is attached to this Common Council File; and
Whereas, The City Attorney's Office, with input from MPL and DCD staff, has negotiated a Purchase, Sale and Development Agreement with HSI to outline the conditions for sale, HSI redevelopment obligations, including detailed requirements for the future East Library condominium unit, the terms for conveyance of the new East Library Condominium to the City and an Option to Purchase with HSI in the event the new East Library Condominium becomes surplus to municipal needs under specified conditions; and
Whereas, The City Plan Commission has approved the design for the New East Library and the future acquisition of the new East Library Condominium; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the development proposal submitted by HSI Properties, LLC for the City-owned East Library at 1910 East North Avenue is accepted; and, be it
Further Resolved, That the Commissioner of DCD, or designee, is authorized to execute the Purchase, Sale and Development Agreement with HSI, or assigns, and to close the transaction according to the terms of the Land Disposition and Acquisition Report, including execution of any needed easements and releases of deed restrictions; and, be it
Further Resolved, That upon creation of the future condominium unit at the property, the City is authorized to accept title to the East Library Condominium from HSI; and, be it
Further Resolved, That the nominal purchase price shall be used to reimburse the Redevelopment Authority of the City of Milwaukee for expenses related to the property sale and reacquisition with any remaining funds to be deposited in the Library Fund; and, be it
Further Resolved, That in the event the Common Council declares the East Library Condominium surplus to municipal needs, the Purchase, Sale and Development Agreement provides an Option to Purchase with HSI Properties or certain successors; and, be it
Further Resolved, That if the Option to Purchase is exercised, the Commissioner of DCD, or designee, is authorized to take steps outlined in the Option to Purchase to negotiate the purchase price and to execute the required legal documents to convey title without additional consideration by the Common Council and after which the net sale proceeds will be deposited with the Library Fund.
Drafter
DCD/Real Estate
EMM:bmm
05/03/12