Number
191277
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. COGGS
Title
Substitute resolution authorizing an Exclusive Right to Negotiate for the City-owned properties at 310 West Locust Street, 2971-75 and 2977-79 North Dr. Martin Luther King Jr., Drive, in the 6th Aldermanic District.
Analysis
This substitute resolution authorizes the Department of City Development to issue an Exclusive Right to Negotiate to Young Development Group, LLC and General Capital Development, LLC or assignee allowing it a period of time to seek Wisconsin Housing and Economic Development Authority financing.
Body
Whereas, The City of Milwaukee (“City”) acquired 2971-75 North Dr. Martin Luther King Jr., Drive in 1997 and 2977-79 North Dr. Martin Luther King Jr., Drive in 2015 (the “King Parcels”) through property-tax foreclosure; and
Whereas, The Martin Luther King Milwaukee Public Library (“King Library Branch”) currently occupies the City-owned property at 310 West Locust Street (the “Locust Parcel”); and
Whereas, In 2016, the Milwaukee Public Library (“MPL”) issued a Request For Proposal for the Locust Parcel to redevelop the King Library Branch; and
Whereas, MPL received four submittals and selected Young Development Group, LLC (“Young”) as its developer to construct a mixed-use building having a new library and residential units at the Locust Parcel; and
Whereas, Young has since partnered with General Capital Development, LLC (“General Capital,” and collectively with Young, the “Developer”) with MPL’s approval; and
Whereas, The Developer desires to expand the overall development by increasing the number of residential units and adding an additional residential building located on the King Parcels; and
Whereas, The Developer has submitted an unsolicited offer to purchase the King Parcels; and
Whereas, On November 26, 2019, the MPL Board voted to approve and grant the Developer an Exclusive Right to Negotiate for the Locust Parcel; and
Whereas, Developer wishes to acquire the Locust Parcel and King Parcels (the “Properties”) to construct a new Martin Luther King Public Library and construct approximately 90 affordable residential housing units, using, in part, Wisconsin Housing and Economic Development Authority (“WHEDA”) Low Income Housing Tax Credits as financing; and
Whereas, Section 304-49-8 of the Milwaukee Code of Ordinances allows the City to accept unsolicited Offers to Purchase property when the City receives fair compensation, whether monetary or non-monetary; and
Whereas, The Developer is seeking Common Council’s approval of an Exclusive Right to Negotiate, which will allow the Developer time to finalize and submit its WHEDA application and to determine whether WHEDA will approve its application for a 2020 award of credits; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the attached Site Control Report is approved and the Commissioner of the Department of City Development (“DCD”) or its designees are authorized to issue to the Developer, or its DCD and MPL-approved assignee, an Exclusive Right to Negotiate in substantial accordance with the attached Site Control Report.
Drafter
DCD:Matt.Haessly:mfh
12/04/19