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File #: 170032    Version:
Type: Resolution Status: Passed
File created: 4/18/2017 In control: COMMON COUNCIL
On agenda: Final action: 5/9/2017
Effective date:    
Title: Substitute resolution relating to termination of the development agreement and other agreements among the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee, Riverbend Place LLC and The Brewery Works, Inc. related to the Manpower redevelopment project, in the 6th Aldermanic District.
Sponsors: THE CHAIR
Indexes: AGREEMENTS, REDEVELOPMENT AUTHORITY, REDEVELOPMENT DISTRICT
Attachments: 1. DCD Memo, 2. Termination Agreement, 3. PILOT Agreement, 4. Satisfaction of Mortgage, 5. Hearing Notice List, 6. Aerial Pictures
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
5/19/20171 MAYOR SIGNED   Action details Meeting details Not available
5/9/20171 COMMON COUNCIL ADOPTEDPass14:0 Action details Meeting details Not available
5/2/20171 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE RECOMMENDED FOR ADOPTION

Minutes note: Individuals appearing: Alyssa Remington, Department of City Development Atty. Jeremy McKenzie, City Attorney's Office Gary Grunau, Grunau Company
Pass5:0 Action details Meeting details Video Video
4/27/20171 CITY CLERK DRAFT SUBMITTED   Action details Meeting details Not available
4/26/20170 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/26/20170 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/26/20170 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/18/20170 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available

Number

170032

Version

SUBSTITUTE 1

Reference

 

Sponsor

THE CHAIR

Title

Substitute resolution relating to termination of the development agreement and other agreements among the City of Milwaukee, the Redevelopment Authority of the City of Milwaukee, Riverbend Place LLC and The Brewery Works, Inc. related to the Manpower redevelopment project, in the 6th Aldermanic District.

Analysis

This substitute resolution approves the termination of a Development Agreement, release of the Tax Increment Guaranty, satisfaction of Mortgage and execution of Estoppel Certificates related to the Manpower project.

Body

Whereas, Riverbend Place LLC and The Brewery Works, Inc. (collectively referred to as the “Developers”) are the Developers of the Manpower development located generally between West Vliet Street, West Cherry Street, North Dr. Martin Luther King Jr. Drive and the Milwaukee River, including the parking structure located immediately north of West Cherry Street (the “Development”); and

 

Whereas, The City of Milwaukee (“City”), the Redevelopment Authority of the City of Milwaukee (“RACM”) and the Developers are parties to a Development Agreement related to the Development; and

 

Whereas, The Development Agreement provides that a portion of the financing for the Development includes a loan in the total original principal amount of $3,000,000 from RACM to the Developers (the “RACM Loan”) funded through Tax Incremental District No. 41 (“TID No. 41”); and

 

Whereas, As part of the financing for the Development, the Developers provided a guaranty of the tax increment for TID No. 41; and

 

Whereas, Part of the security for the RACM Loan and the tax increment guaranty was a second mortgage on the office building portion of the Development (the “Mortgage”); and

 

Whereas, The City, RACM and the Developers are parties to a lease agreement for the parking garage portion of the Development and an air space lease for the skywalk that is part of the Development (collectively the “Leases”); and

 

Whereas, The Developers have notified the City and RACM that they intend to sell the Property; and

 

Whereas, As part of the sale transaction, the Developers have requested that the City and RACM terminate the Development Agreement, satisfy and release the Mortgage on the Property and execute Estoppel Certificates related to the Leases; and

 

Whereas, The Development has generated a sufficient increase in tax increment to cover the investment in the Project; and

 

Whereas, The balance of the RACM Loan will be paid in full via proceeds of the sale of the Project; and

 

Whereas, The Developers have agreed to execute a PILOT Agreement covering the Property; now, therefore, be it

 

Resolved, By the Common Council of the City of Milwaukee, that the termination of the Development Agreement, the Release and Satisfaction of Mortgage and the execution of Estoppel Certificates are approved and the proper City officials are authorized to execute any documents necessary to carry out the intent of this resolution.

Drafter

DCD:Alyssa.Remington:aer

04/26/17