Number
030309
Version
SUBSTITUTE 2
Reference
Sponsor
ALD. HENNINGSEN
Title
Substitute resolution approving a lease for the Pier Wisconsin project in the 4th aldermanic district.
Analysis
This resolution authorizes, pursuant to Sec. 30.38(6), Stats., the Board of Harbor Commissioners and the proper City officers to enter into a Development and Lease Agreement ("Lease Agreement") with Pier Wisconsin Ltd. ("Tenant"). Under the terms of the Agreement, the City and the Board of Harbor Commissioners ("Board") will lease certain City property located on submerged and filled lake bed grant lands ceded to the City by the State of Wisconsin and located on the Lake Michigan shore front. The initial term of the lease is for 30 years and the initial rental will be a one-time payment computed at $6.50 per square foot times the number of square feet covered by the Improvement (but in no case less than $390,000) plus additional annual rent of 5% in excess of $5,000,000 in net Tenant income, payable at the time the City approves the final design of the Improvement and all other conditions in the agreement are satisfied. The Lease Agreement can be extended for one additional 30-year period subject to an agreement between the parties on a new rental. If the parties cannot agree, they may arbitrate any disagreement on the rental amount for the new term. Tenant will construct a Great Lakes Museum and Navigation Education Center (the "Improvement") on the Lease Site. Exhibit A of the lease sets forth certain criteria for the design of the Improvement. The Tenant must work closely with the City and Harbor Commission to develop and select a final design. A designated professor in the University of Wisconsin-Milwaukee Department of Architecture (or if he is not available, another individual agreed upon by the parties) shall facilitate the design process and resolve any design related differences within the agreed parameters. The final design will be submitted...
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