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File #: 200932    Version:
Type: Resolution Status: Passed
File created: 11/4/2020 In control: COMMON COUNCIL
On agenda: Final action: 11/24/2020
Effective date:    
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.
Sponsors: ALD. COGGS
Indexes: MILWAUKEE PUBLIC LIBRARY, REDEVELOPMENT, URBAN
Attachments: 1. Site Control Report, 2. Hearing Notice List
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
12/2/20201 MAYOR SIGNED   Action details Meeting details Not available
11/24/20201 COMMON COUNCIL ADOPTEDPass15:0 Action details Meeting details Video Video
11/17/20201 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE RECOMMENDED FOR ADOPTION

Minutes note: Appearing: Matt Haessly, Dept. of City Development Michael Emem, EMEM Group LLC
Pass5:0 Action details Meeting details Video Video
11/9/20201 CITY CLERK DRAFT SUBMITTED   Action details Meeting details Not available
11/4/20200 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available

Number

200932

Version

SUBSTITUTE 1

Reference

191277

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 General Capital Group, LLC and EMEM Group, 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”) 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 (“RFP”) for the Locust Parcel to redevelop the King Library; and

 

Whereas, MPL selected a developer who partnered with General Capital Group, LLC (“General Capital”) to construct a mixed-use building having a new library and residential units at the Locust Parcel; and

 

Whereas, After the original team of developers were unable to obtain financing for their proposed project, General Capital partnered with EMEM Group, LLC, collectively with General Capital, (the “Developer”) to continue working on the King Library redevelopment 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, 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, On November 5, 2020, the MPL Building & Development Committee voted to recommend to the MPL Board (which meets on November 24, 2020) that it continue to work with the Developer and that it endorse granting to the Developer an Exclusive Right to Negotiate for the Locust Parcel; and

 

Whereas, Developer wishes to acquire the Locust Parcel and King Parcels, collectively, (the “Properties”) to construct a new King 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, On November 26, 2019, by passage of Common Council File No. 191277, the City approved the Site Control Report and authorized MPL and DCD to negotiate exclusively with General Capital and its prior development partner; and

 

Whereas, Because the development partnership has changed and because the Exclusive Right to Negotiate previously approved has expired, this new resolution is required in order to continue the negotiations with the Developer and to move the project forward; and

 

Whereas, The Developer is seeking the Common Council of the City of Milwaukee’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 2021 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

11/09/20