Number
R13003
Version
Original
Reference
Resolution No. 12984
Sponsor
The Chair
Title
Resolution approving an Operating Agreement of National Soldiers Home Residences I, LLC, between the Housing Authority of the City of Milwaukee and the Alexander Company, Inc. in connection with development, rehabilitation and long-term use of Building 2 of the Clement J. Zablocki Medical Center
Analysis
Body
WHEREAS, The Housing Authority of the City of Milwaukee (“HACM”) and The Alexander Company (“TAC”) are jointly interested in establishing and co-managing a 101-unit affordable rental housing development for occupancy by veterans and their families who are homeless or at-risk of homelessness (the “Project”), located at 5000 West National Avenue; and
WHEREAS, in 2017 HACM and TAC executed a Memorandum of Understanding (“MOU”), agreeing to cooperate in good faith and in a commercially reasonable manner to cause the rehabilitation and operation of the Project; and
WHEREAS, it is anticipated that the Project will obtain a hybrid allocation of 9% and 4% federal low-income housing tax credits from the Wisconsin Housing and Economic Development Authority (“WHEDA”); and
WHEREAS, significant discussions between TAC and HACM have resulted in an Operating Agreement of National Soldiers Home Residences I, LLC building from the terms of the previously approved MOU; and
WHEREAS, the purpose of National Soldiers Home Residences I, LLC will be to implement the concurrent development of the Project under a hybrid structure through two newly created limited liability companies (one for the anticipated 4% tax credit and one for the anticipated 9% tax credit); and
WHEREAS, the Operating Agreement of National Soldiers Home Residences I, LLC sets forth the limited liability company’s initial business activities, the rights and obligations of TAC and HACM (as the members of the limited liability company), and the anticipated fundamental terms of the 4% and 9% tax credit LLCs...
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