NUMB:
VERS:
ORIGINAL
REF:
921093
XXBY:
THE CHAIR
TITL:
Resolution approving Tax Incremental District 19 (Campus Circle) loan repayment accounting treatment.
ANLS:
-Analysis-
This resolution designates that a loan repayment of $4,786,425.37 to the City of Milwaukee related to TID 19 (Marquette Circle) be deposited in the City's General Obligation (GO) Debt Service Fund to offset City GO debt service costs incurred for this purpose.
BODY:
WHEREAS, The City of Milwaukee granted the Redevelopment Authority of the City of Milwaukee (RACM) a $6,150,000 grant for the purposes of assisting Marquette University in its development of the Marquette Campus Circle project; and
WHEREAS, RACM subsequently provided the above noted funds as a grant to the Milwaukee Economic Development Corporation (MEDC) for the purpose of funding various aspects of the Marquette Campus Circle Project; and
WHEREAS, MEDC subsequently provided a $4,170,000 loan to Hilltop Enterprises, Inc. (Hilltop), a non-profit corporation established by Marquette University to finance and manage the construction and operation of a specified commercial development on its campus; and
WHEREAS, The Development Loan Agreement between MEDC and Hilltop allowed prepayment of any outstanding loan balance at any time without penalty; and
WHEREAS, The outstanding Hilltop loan balance on May 21, 1999 totaled $ 4,170,000.00; and
WHEREAS, Hilltop made a full repayment of the loan on May 21, 1999; and
WHEREAS, Consistent with Wisconsin State Statutes Chapter 66.45 (2)(f) 1, all repayments of this loan are to be considered TID #19 program revenue to offset or "diminish" the cost of this TID until its closure; and now therefore be it
RESOLVED, That the entire Hilltop loan prepayment of $4,786,425.37 representing $ 4,170,000.00 for repayment of outstanding principal and $616,425.37 for repayment of unpaid interest be directed to be applied to the City General Operation Debt Service Fund for the purpose of offsetting eligible TID costs in the form of City principal and interest payments for general operation debt previously issued for TID 19 purposes.
ZDPT:
DFTR:
Comptroller
MJD:RS:glk
8/4/99
REF: PD4788W.DOC