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File #: R13128    Version: 0
Type: Housing Authority Resolution Status: Passed
File created: 1/30/2020 In control: HOUSING AUTHORITY
On agenda: 2/5/2020 Final action: 2/5/2020
Effective date:    
Title: Resolution approving a contract to Travaux, Incorporated (Milwaukee, WI) to be the Construction Manager at Risk Constructor for Becher Court project in an amount not to exceed $6.9 million
Sponsors: THE CHAIR
Attachments: 1. Becher Court and Travaux GC Contract - Draft.pdf, 2. Becher Court Forecast 1-6-20 (Exhibit to LOI).pdf, 3. Becher Court GC Contract - Project Narrative.pdf
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
2/5/20200 HOUSING AUTHORITY  

Minutes note: Commissioner Diaz asked if the speaker could provide background on Travaux, and why they were chosen for this project. Kaylin Nuss, HACM Director of Strategic Initiatives, stated that the resolution is for Travaux, Inc. to perform the General Contractor work at Becher Court. Ms. Nuss explained that Travaux is an instrumentality of HACM. HACM began doing its own development work in the 1990s, and that staff shifted to Travaux when the instrumentality was created. By keeping work under HACM’s umbrella, HACM is able to perform more effectively and keep the developer fees in-house, recycling them to do more improvements to the property or financing future projects. Commissioner Lloyd asked what was the difference between the term instrumentality versus subsidiary. Fernando Aniban, HACM Chief Financial Officer, explained the term instrumentality is used when the sole owner is a public entity rather than the term wholly-owned subsidiary, used in the private sector. Mr. Aniban explained that Travaux does not do the work, only serves as the general contractor and will bid out the work for this HUD-funded project following HUD guidelines. Ms. Nuss informed the Board that this project will be funded through 9% Tax Credits and RAD conversion. PNC Bank is the equity investor and HACM plans to close in June of 2020 with construction starting in July 2020. Commissioner Lloyd asked about the relocation assistance and process for residents and Ms. Nuss outlined the process and the options available.
   Not available Meeting details Not available
Number
R. 13128

Version
Original

Reference

Sponsor
The Chair

Title
Resolution approving a contract to Travaux, Incorporated (Milwaukee, WI) to be the Construction Manager at Risk Constructor for Becher Court project in an amount not to exceed $6.9 million

Analysis

Body
WHEREAS, WHEREAS, Becher Court is one of the Public Housing Developments that received Commitment for Housing Assistance Payments (CHAP) under the Rental Assistance Demonstration (RAD) from the Housing and Urban Development (HUD); and

WHEREAS, the Housing Authority of the City of Milwaukee (HACM) received an allocation of Low Income Housing Tax Credits from the Wisconsin Housing and Economic Development Authority for the rehabilitation of Becher Court; and

WHEREAS, HACM incorporated Becher Court LLC to be the owner entity for this Project; and

WHEREAS, HACM is the developer and the Managing Member of Becher Court LLC through its wholy owned Limited Liability Company, Becher Court Development LLC; and

WHEREAS, HACM formed the subsidiary Travaux, Incorporated to strategically position its own development capacity and provide services both to HACM and to entities outside of its portfolio; and

WHEREAS, the Secretary-Executive Director recommends that Becher Court LLC enters into a contract with Travaux, Inc.; now, therefore, be it

RESOLVED, by the Housing Authority of the City of Milwaukee that they approve entering into a contract with Travaux, Inc. to be the construction manager at risk/constructor for Becher Court project; and, be it

FURTHER RESOLVED, that the proper officers of the Authority are hereby authorized and directed to properly execute said contract for and on behalf of the Authority and Becher Court LLC; and, be it

FURTHER RESOLVED, that if any extensions of the time of performance and change orders are needed, the Chairman or Secretary-Executive Director may approve such request without any further action of the Authority; and, be it

FURTHER RESOLVED, that a...

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