Number
200599
Version
ORIGINAL
Reference
Sponsor
ALD. HAMILTON
Title
Resolution relating to the sale of the surplus Milwaukee Public Schools property at 5372 North 37th Street, in the 1st Aldermanic District.
Analysis
This resolution approves the sale and surplus designation of the former Edison Middle School at 5372 North 37th Street, to Gorman & Company, LLC for redevelopment as multi-family housing.
Body
Whereas, Edison Middle School at 5372 North 37th Street (the “Property”), was declared surplus by the Milwaukee Board of School Directors in 2017; and
Whereas, In accordance with the requirements imposed by Wisconsin Statutes Section 119.61, the Property was listed for sale to education operators only for a two-year period that ended in July 2019; and
Whereas, No education operator purchased the Property during that two-year period; and
Whereas, In accordance with Wisconsin Statutes Section 119.61, the Property was listed for sale for adaptive re-use in October 2019; and
Whereas, The Department of City Development (“DCD”) received only one proposal for the purchase and redevelopment of the Property from Gorman & Company, LLC (“Buyer”); and
Whereas, The Buyer proposes to invest an estimated $20 million to purchase and renovate the Property as 64 units in the existing school building and construct 11 new townhomes on the site; and
Whereas, A Zoning application has been submitted to change the zoning to RM4 to permit the proposed development; and
Whereas, DCD has reviewed the offer and development proposal from the Buyer and determined that the offer and proposal represent fair compensation; and
Whereas, DCD has reviewed financial information submitted by the Buyer and determined that the Buyer has the financial capacity to purchase and renovate the Property, contingent on the Buyer’s receipt of Low Income Housing Tax Credits and Federal and State Historic Tax Credits; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the Land Disposition Report (“LDR”) for the Property, a copy of which is attached to this Common Council File, is approved, and that DCD is authorized to enter into a Purchase and Sale Agreement (“PASA”) with the Buyer, or its affiliated entity, materially consistent with the LDR, and then convey the Property to the Buyer, or assignee, in accordance therewith; and, be it
Further Resolved, That the Commissioner of DCD, or designee, is authorized to sign the PASA, deed and requisite closing documents and to close the transaction and to take such actions, as may be needed, to effectuate the terms of the LDR and this resolution, including any needed easements and/or releases of deed restrictions; and, be it
Further Resolved, That the sale proceeds, less sale expenses, shall be deposited in the Milwaukee Public Schools Operations Fund, in accordance with Wisconsin Statutes Sections 110.46 and 119.61(5).
Drafter
DCD:Rhonda.Szallai:rs
09/01/2020/A