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File #: 150383    Version:
Type: Resolution Status: Passed
File created: 6/23/2015 In control: COMMON COUNCIL
On agenda: Final action: 9/22/2015
Effective date:    
Title: Substitute resolution approving a Project Plan, a Development Agreement, authorizing expenditures, creating Tax Incremental District No. 84 (West McKinley and West Juneau), declaring the City-owned parking structure at 324 West Highland Avenue surplus to municipal needs and approving Land Disposition Reports and authorizing conveyance of 324 West Highland Avenue and 300-18 West Juneau Avenue to the Milwaukee Bucks, LLC, in the 4th and 6th Aldermanic Districts.
Sponsors: ALD. BAUMAN
Attachments: 1. Bucks Arena Term Sheet as of 9-22-2015 FINAL, 2. Common Council Motion by Ald. Coggs, 3. Term Sheet as amended 9-15-2015, 4. Amendment Motions 1A, 1B, 1C, 5. Amendment Motion 2, 6. Amendment Motion 3D, 7. 324 West Highland LDR and Checklist, 8. 300-18 West Juneau LDR and Checklist, 9. Project Plan as of 7-6-15, 10. Fiscal Impact Statement, 11. Comptroller TID 84 Analysis, 12. Comptroller Letter 8-24-15, 13. Ctiy Attorney Opinion on Set-Asides.pdf, 14. Oppose - Theodore D. Kafkas, 15. Support - Historic King Drive BID, 16. Hearing Notice List, 17. Amendment Motions 3A, 3B, 18. Amendment Motion 3C, 19. Amendment Motion 4, 20. Ald. Michael Murphy Letter to Wisconsin Center District.pdf, 21. Oppose - Pat Small.pdf, 22. James Ito Letter - Stipulation Request.pdf, 23. Jeanie Dean - Save the Real Pubs Journal Sentinel Article.pdf, 24. Northwestern Mutual Tower and Commons Quarterly Report Email.pdf, 25. No Subsidies for Bucks Mall - Journal Sentinel Article.pdf, 26. Oppose - Anonymous.pdf, 27. Arena ZND presentation 9-15-2015, 28. Transmittal Letter for HVS Report, 29. HVS Report -Bucks Arena Assessment, 30. Fresno Future - The Experiment of American Pedestrian Malls.pdf, 31. Urban Milwaukee Article - Street Closing on Arena Agenda.pdf, 32. Journal Interactive Article - Bucks should take a lesson from Titletown.pdf, 33. Open Letter - Postpone vacating 4th Street
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
9/22/20152 MAYOR SIGNED   Action details Meeting details Not available
9/22/20152 COMMON COUNCIL AMENDED

Minutes note: Ald. Coggs moved to amend the following: Amend Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet" (September 15, 2015, version), "City Obligations" section by amending item E.1. to read as follows: 1. Initiate and consider an application to vacate N. 4th Street between W. Juneau Avenue and W. Highland Avenue and N. 5th Street and the public alleys in Block 1 and complete any utility work (water/sewer/comm) related to those vacations by the end of 2015. Such vacations will proceed through the City’s standard process for street vacations. Further amend Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet" (September 15, 2015, version), "City Obligations" section by deleting item G, which reads as follows: G. Close N. 4th Street as needed using movable bollards under the authority of a special privilege permit (or other device to recognize the Bucks’ right use to use the street). Further amend the “Term Sheet” (September 15, 2015, version), “Bucks Obligations” section by renumbering items B through F as items C through G and creating an item B that reads as follows: B. Accommodate and agree to a transportation, utility and public access easement for the benefit of the City, in vacated 4th Street. Such easement shall be executed by the City, Wisconsin Center District and the Bucks prior to recording the resolution vacating 4th Street and shall include a reversionary clause that requires the re-designation of 4th Street as right-of-way at no cost to the City if the Bucks no longer use the Plaza or Bucks Arena and the City requests such re-dedication. City agrees to coordinate with Bucks on design and construction of any facilities placed within the easement area in order to accommodate any safety and operational concerns of the Bucks. Further amend the “Term Sheet” (September 15, 2015, version), “Bucks’ Commitment to City Prerequisites” section, “Human Resources Requirements” subsection by amending item B.3. as follows: 3. In an effort to increase workforce capacity in the City of Milwaukee, the Bucks and City agree to contribute a minimum of $375,000 each during the next 4 years towards capacity building programs to be conducted in cooperation with MAWIB for the Greater Arena Project. The Bucks’ portion may be paid directly by the Bucks, through an affiliate or through the Bucks’ foundation. The funding of the City portion is yet to be determined. The capacity building funds may be utilized to pay for the following: a. Completing the gap analysis as described in B.2. b. A youth recruitment program. c. Worker recruitment events. d. Development of an end user worker recruitment project. e. Business development program in the architectural and other professional fields. f. Any other program that the City and Bucks mutually agree upon. Further amend the “Term Sheet” (September 15, 2015, version), “Bucks’ Commitment to City Prerequisites” section, “Parking Structure” subsection by changing item K to read as follows: K. City may sell, and Bucks shall market, naming rights or corporate sponsorship signage for the Parking Structure. City and Buck shall each receive 50 percent of any revenue associated with such naming or sponsorship. City anticipates that its share of such revenue will be dedicated to the MKE Plays Initiative. Any associated signage is subject to City’s standard approval requirements, which shall not be unreasonably withheld.
Pass15:0 Action details Meeting details Video Video
9/22/20152 COMMON COUNCIL ADOPTEDPass12:3 Action details Meeting details Not available
9/21/20152 CITY PLAN COMMISSION RECOMMENDED FOR ADOPTION AND ASSIGNEDPass5:0 Action details Meeting details Not available
9/15/20151 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE SUBSTITUTED

Minutes note: Individuals appearing: Rocky Marcoux, Department of City Development Martin Matson, City Comptroller Peter Feigin, Milwaukee Bucks Atty. Bruce Block, Reinhart Boerner Van Deuren S.C. Ald. Michael Murphy, 10th Aldermanic District Ald. Wade moved substitution of the file with Proposed Substitute A. (Prevailed 5-0)
Pass5:0 Action details Meeting details Video Video
9/15/20152 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE AMENDED

Minutes note: Ald. Bauman moved to amend the file with the following Motions 1A, 1B, and 1C: Amend Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet", "City Obligations" section by changing item E(1) to: 1. Retain N. 4th Street between W. Juneau Avenue and W. Highland Avenue as a through street. Vacate N. 5th Street and the public alleys in Block 1 and complete any utility work (water/sewer/comm/traffic) related to those vacations by the end of 2015.; Adding Item G as follows: G. Close N. 4th Street as needed using movable bollards under the authority of a special privilege permit (or other device to recognize the Bucks' right to use the street).; And amend the "Team Sheet", "Bucks' Obligations" section by deleting Item B. (Motions 1A, 1B, 1C prevailed 3-2)
Pass3:2 Action details Meeting details Not available
9/15/20152 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE AMENDED

Minutes note: Ald. Bauman moved to amend the file with Motion 2 as follows: Amend the Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet", "Bucks' Commitment to City Prerequisites" section, "Parking Structure" sub-section, by changing Item K to: K. City may sell naming rights or corporate sponsorship signage for the Parking Structure and retain all revenue associated with such naming or sponsorship. Any associated signage is subject to City's standard approval requirements, which shall not be unreasonable withheld. (Prevailed 5-0)
Pass5:0 Action details Meeting details Not available
9/15/20152 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HELD TO CALL OF THE CHAIR

Minutes note: Ald. Bauman moved to amend the file with Motions 3A and 3B as follows: Amend the Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet", "Bucks' Commitment to City Prerequisites" section, "Human Resources Requirements" sub-section, by changing the introductory line of Item A to: "A. On any construction in Blocks 1 through 8, known as the "Greater Arena Project" and the "Training Facility":"; And amend the Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet", "Bucks' Commitment to City Prerequisites" section, "Human Resources Requirements" sub-section as follows: "A. On construction of the area designated Blocks 1 through 8, commonly known as the "Greater Arena Project" and the "Training Facility:" And "B. On construction of the area designated Blocks 1 through 8, commonly known as the "Greater Arena Project" and the "Training Facility:" And amend Item B (Residential Preference Program) as follows: Delete requirement 1. "10% are residents of Milwaukee County." Increase requirement 2 (introduction), from 30% to 40% "are any combination of the following categories:" Delete requirement 2c. "City residents." Additional individuals appearing: Ald. Ashanti Hamilton, 1st Aldermanic District Ald. Russell Stamper, 15th Adlermanic District Ald. Joe Davis, 2nd Aldermanic District Ald. Milele Coggs, 6th Aldermanic District Meeting recessed at 11:44 a.m. Meeting reconvened at 12:30 p.m. Ald. Bauman moved to amend Motions 3A and 3B and replace those motions with Motion 3C as follows: Amend the Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet", "Bucks' Commitment to City Prerequisites" section, "Human Resources Requirements" sub-section as follows: 1. Replace the introductory clause of Item A with the following: "A. On construction of the area designated Blocks 1 through 8, commonly known as the "Greater Arena Project" and the "Training Facility" and ancillary development in those Blocks:" 2. Re-write Item B (Residential Preference Program) to read as follows: "B. On construction of the area designated Blocks 1 through 8, commonly known as the "Greater Arena Project" and the "Training Facility" and ancillary development in those Blocks: 1. 40% of workers shall qualify under the City Residential Preference Program (RPP): a. RPP qualified workers shall be City residents that are unemployed or underemployed as defined in sec. 309-41-1-f of the Milwaukee Code of Ordinances or grandfathered unemployed or underemployed City residents who no longer meet the time requirements in Sec. 309-41-1-f because of their work on other recent development projects in the City of Milwaukee. b. In the event that the Bucks exhaust all eligible workers who meet the City's RPP ordinance as described in B.1.(a). as determined by the City's Office of Small Business Development in cooperation with the Milwaukee Area Workforce Investment Board, and have not met the 40% requirement, the Bucks may hire any City resident to fill that gap and reach the 40% requirement. 2. For purposes of maximizing employment opportunities, targeting training programs and assessing compliance feasibility within specific components of the project subject to RPP, the HRA shall provide that City (through City's Department of City Development and Office of mall Business Development), Bucks and Bucks' project manager, in conjunction with the Milwaukee Area Workforce Investment Board in collaboration with the Milwaukee Building Trades and WRTP Big Step, shall develop a gap analysis of work force capabilities and capacities on a trade by trade basis. This analysis shall be performed both prior to commencement of construction and again following construction bidding. 3. In an effort to increase workforce capacity in the City of Milwaukee, the Bucks and City agree to contribute a minimum of $375,000 each during the next 4 years towards capacity building programs to be conducted in cooperation with MAWIB for the Greater Arena Project. The Bucks' portion may be paid directly by the Bucks through an Affiliate or through the Bucks' foundation. The funding of the City portion is yet to be determined. The capacity building programs may include the following: a. A youth recruitment program. b. Worker recruitment events. c. Development of an end user worker recruitment project. d. Business development program in the architectural and other professional fields. e. Any other program that the City and Bucks mutually agreed upon. Additional individual appearing: Mary Schanning, City Attorney's Office Ald. Bauman moved to withdraw Motion 3C. Ald. Kovac moved to amend the file with Motion 4 as follows: Amend the Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the "Term Sheet", "Bucks' Obligations" section by adding the following item: I. If a third-party assessment determines the value of the Bucks franchise increases, then all investors in the new arena (Bucks, State of Wisconsin, City of Milwaukee, Milwaukee County, Wisconsin Center District) will receive a rebated share of that increase pro-rated by their arena investment and lmited to that investment. This assessment shall be after the first 10 years and every 5 years thereafter for the following 20 years. (Motion 4 Failed 2-3)
Pass5:0 Action details Meeting details Video Video
9/15/20152 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE RECONSIDEREDPass4:0 Action details Meeting details Video Video
9/15/20152 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE AMENDED

Minutes note: Ald. Perez moved to amend the file with Motion 3D, offered by Ald. Bohl, as follows: Amend the Tax Incremental District No. 84 Project Plan, Exhibit 4, known as the “Term Sheet”, “Bucks’ Commitment to City Prerequisites” section, “Human Resources Requirements” sub-section as follows: 1. Replace the introductory clause of Item A with the following: “A. On construction of the Bucks Arena, Plaza and Parking Structure:” 2. Re-write Item B (Residential Preference Program) to read as follows: “B. On construction of the Bucks Arena, Plaza and Parking Structure:” 1. 40% of workers shall qualify under the City Residential Preference Program (RPP): a. RPP qualified workers shall be City residents that are unemployed or underemployed as defined in sec. 309-41-1-f of the Milwaukee Code of Ordinances or grandfathered unemployed or underemployed City residents who no longer meet the time requirements in Sec. 309-41-1-f because of their work on other recent development projects in the City of Milwaukee. b. In the event that the Bucks exhaust all eligible workers who meet the City’s RPP ordinance as described in B.1.(a). as determined by the City’s Office of Small Business Development in cooperation with the Milwaukee Area Workforce Investment Board, and have not met the 40% requirement, the Bucks may hire any City resident to fill that gap and reach the 40% requirement. 2. For purposes of maximizing employment opportunities, targeting training programs and assessing compliance feasibility within specific components of the project subject to RPP, the HRA shall provide that City (through City’s Department of City Development and Office of Small Business Development), Bucks and Bucks’ project manage, in conjunction with the Milwaukee Area Workforce Investment Board in collaboration with the Milwaukee Building Trades and WRTP Big Step, shall develop a gap analysis of work force capabilities and capacities on a trade by trade basis. This analysis shall be performed both prior to commencement of construction and again following construction bidding. 3. In an effort to increase workforce capacity in the City of Milwaukee, the Bucks and City agree to contribute a minimum of $375,000 each during the next 4 years towards capacity building programs to be conducted in cooperation with MAWIB for the Greater Arena Project. The Bucks’ portion may be paid directly by the Bucks through an Affiliate or through the Bucks’ foundation. The funding of the City portion is yet to be determined. The capacity building programs may include the following: a. A youth recruitment program. b. Worker recruitment events. c. Development of an end user worker recruitment project. d. Business development program in the architectural and other professional fields. e. Any other program that the City and Bucks mutually agreed upon. (Motion 3D Prevailed 5-0)
Pass5:0 Action details Meeting details Not available
9/15/20152 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE RECOMMENDED FOR ADOPTION

Minutes note: Individual reappearing: Ald. Michael Murphy, 10th Aldermanic District
Pass4:1 Action details Meeting details Not available
9/11/20151 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE REFERRED TO

Minutes note: To Whom It May Concern: The attached file is being referred to you for: Report and reply, preparation of ordinance and fiscal note. Further information relating to this file may be found via the Legistar system at http://milwaukee.legistar.com/Legislation.aspx. If you have any questions please feel free to contact Chris Lee at 286-2232 or clee@milwaukee.gov
   Action details Meeting details Not available
9/9/20151 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
7/8/20151 CITY CLERK DRAFT SUBMITTED   Action details Meeting details Not available
6/23/20150 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available
Number
150383
Version
SUBSTITUTE 2
Reference

Sponsor
ALD. BAUMAN
Title
Substitute resolution approving a Project Plan, a Development Agreement, authorizing expenditures, creating Tax Incremental District No. 84 (West McKinley and West Juneau), declaring the City-owned parking structure at 324 West Highland Avenue surplus to municipal needs and approving Land Disposition Reports and authorizing conveyance of 324 West Highland Avenue and 300-18 West Juneau Avenue to the Milwaukee Bucks, LLC, in the 4th and 6th Aldermanic Districts.
Analysis
Tax Incremental District No. 84 (“District”) consists of 70 properties totaling 44.82 acres, including the Bradley Center and Park East land west of the Milwaukee River. The District is being created to assist with the development of a $500 million new arena in downtown Milwaukee and up to an additional $500 million in private development on surrounding properties.

The District will fund a total of up to $20,000,000 in project costs. A $12,000,000 grant for the plaza associated with the new downtown arena project will be repaid to the City of Milwaukee through incremental tax revenue from the District. After the City is repaid, an annual payment will be made to the Bucks from incremental tax revenue in the District, not to exceed an amount sufficient to repay up to $8,000,000, at 4.5 percent interest.

In addition, this substitute resolution declares the City-owned parking structure at 324 West Highland Avenue surplus to municipal needs and approves the Land Disposition Reports and conveyance of 324 West Highland Avenue and the Redevelopment Authority of the City of Milwaukee-owned parcel at 300-18 West Juneau Avenue to the Milwaukee Bucks, LLC.
Body
Whereas, Chapter 105 of the Laws of 1975 of the State of Wisconsin, with amendments from other chapters of said Laws, created Section 66.1105, Wisconsin Statutes, titled “Tax Increment Law;” and

Whereas, Section 66.1105(4) of the Tax Increment Law sets forth certain cr...

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