Number
130623
Version
SUBSTITUTE 1
Reference
101375, 130055
Sponsor
ALD. ZIELINSKI
Title
Substitute resolution regarding the disposition of assets received by the City of Milwaukee in satisfaction of a loan to Sweet Water Organics.
Analysis
This substitute resolution approves disposition of certain assets received by the City of Milwaukee in settlement of debt due to the City from Sweet Water Organics 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 (“SWO”) to assist the company to expand its operations; and
Whereas, SWO ceased production before achieving employment levels that would have allowed for full forgiveness of the loan; and
Whereas, Certain collateral purchased with loan proceeds was protected by the Loan and Security Agreement (“Agreement”) between the City of Milwaukee (“City”) and SWO; and
Whereas, Common Council File No. 130055 directed the Department of City Development (“DCD”) to work with the Office of the City Attorney to recapture the collateral granted by the Agreement and directed DCD to dispose of the collateral through sale or lease arrangements with a qualified purchaser or lessor; and
Whereas, File No. 130055 further stipulated that DCD obtain prior Common Council approval for any sale or lease agreements or other arrangements for the disposition of SWO collateral; and
Whereas, On July 8, 2013, SWO delivered to the City Attorney a Bill of Sale surrendering the protected collateral; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that DCD is authorized to enter into an agreement with Betthausers’ Auction Service to hold an auction to dispose of collateral items located at 187 East Becher Street, Milwaukee, Wisconsin; and, be it
Further Resolved, That DCD is authoriz...
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