Number
140595
Version
SUBSTITUTE 1
Reference
030974
Sponsor
THE CHAIR
Title
Substitute resolution approving an amendment to the Loan Agreement, Tax Incremental District No. 53 - Menomonee Valley Industrial Center (lngeteam, Inc. Project), in the 8th Aldermanic District.
Analysis
This amendment adjusts certain employment goals set forth in the Loan Agreement with lngeteam, Inc. regarding its facility in the Menomonee Valley Industrial Center. Due to the continuing weakness in the economy, employment is not expected to meet the milestones set forth in the Agreement as early as originally contemplated. lngeteam currently has 80 employees at its Menomonee Valley Industrial Center facility. The purpose of the amendment is to more accurately reflect anticipated employment levels given the current economy.
Body
Whereas, The Redevelopment Authority of the City of Milwaukee and lngeteam, Inc. entered into a Loan Agreement, TID No. 53 - Menomonee Valley Industrial Center (lngeteam, Inc. Project) as June 25, 2010; and
Whereas, Pursuant to the Loan Agreement, RACM funded a $2 million forgivable loan (the "Loan") to lngeteam for the purpose of financing a portion of the costs of constructing and equipping its facility in the Menomonee Valley Industrial Center; and
Whereas, The Loan was funded using TID-53 expenditures approved pursuant to the Project Plan for TID-53 approved by Common Council Resolution File No. 030974, adopted November 25, 2003; and
Whereas, Section 2.4 of the Loan Agreement provided for loan forgiveness in each year that lngeteam maintained employment at its Menomonee Valley facility of not less than the Minimum Employment Requirement set forth on Exhibit C attached to the Loan Agreement; and
Whereas, Due to the continuing weakness of the economy, employment is not expected to meet the milestones set forth in Exhibit C to the Loan Agreement as early as originally contemplated and accordingly RACM and lngeteam propose to enter into a F...
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