Number
201276
Version
SUBTITUTE 1
Reference
200382
Sponsor
ALD. STAMPER
Title
Resolution approving a Land Disposition Report and Due Diligence Checklist, and authorizing the sale of the City-owned tax deed property at 1722 West Lloyd Street and City acquisition and then sale of 1726 West Lloyd Street, in the 15th Aldermanic District.
Analysis
This resolution authorizes the sale of City-owned Development Property at 1722 West Lloyd Street, and City acquisition by tax foreclosure and then sale of 1726 West Lloyd Street, to Dynamic Empowerment Properties, LLC, according to the conditions in a Land Disposition Report, and per Sections 304-49-5 and 304-49-8, Milwaukee Code of Ordinances, and approves the Land Disposition Report and the Due Diligence Checklist for the transactions.
Body
Whereas, The City of Milwaukee (“City”) acquired 1722 West Lloyd Street (the “City Parcel”) in November 2002 through property tax foreclosure, and 1726 West Lloyd Street (the “DNA Parcel”) is in the City’s 2020 No. 2 property tax foreclosure file; and
Whereas, Dynamic Empowerment Properties, LLC (“Dynamic”) is the buyer, and Charlotte Randolph is its managing member; and
Whereas, Apple Tree Educational Services, LLC (“Apple”) is Dynamic’s tenant at the DNA Parcel and Charlotte Randolph is Apple’s managing member, and Apple wants to continue being the tenant at the DNA Parcel and Apple wants to be tenant at the City Parcel; and
Whereas, If the City is able to successfully tax foreclose against the DNA Parcel, the DNA Parcel shall be conveyed to Dynamic; and
Whereas, Charlotte Randolph submitted a Project Proposal to the Department of City Development (“DCD”); and
Whereas, As per the Project Proposal, and also the Land Disposition Report (“LDR”) and Due Diligence Checklist (“DDC”) that have been submitted to this file, if Dynamic is able to acquire the two parcels, Dynamic will lease the two parcels to Apple so that Apple can continue using the DNA Parcel as its child care facility, and so the City Parcel can be improved as a garden for Apple to use in conjunction with its child care operations; and
Whereas, DCD determined that the project proposal, including Dynamic’s investment and use, represent fair compensation to the City considering the purchase price, investment in the neighborhood, removal of blight, intended use, and the return of the DNA Parcel to the tax rolls; and
Whereas, DCD conducted a historical land use investigation of the DNA Parcel and concluded that the historical land uses may have adversely impacted the soil and/or groundwater conditions at the DNA Parcel; and
Whereas, Since tax foreclosure against the DNA Parcel, if successful, will result in the City stepping into the chain of title briefly before City conveyance to Dynamic, per Milwaukee Code of Ordinances 308-22, the Common Council must approve City acquisition of the DNA Parcel; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the LDR and DDC submitted to this file are approved, that the City is authorized to pursue tax foreclosure and acquisition of the DNA Parcel, that if the City is successfully able to acquire the DNA Parcel, City officials are authorized to enter into a Purchase and Sale Agreement with Dynamic and to convey the City Parcel and DNA Parcel to Dynamic, in accordance with the terms and conditions in the LDR, and to take such other actions as may be needed to effectuate the terms of the LDR and this resolution; and, be it
Further Resolved, That the sale proceeds, less sale and marketing expenses and a 30 percent disposition fee to the Redevelopment Authority of the City of Milwaukee, shall be credited to the Delinquent Tax Fund.
Drafter
DCD:Matt.Haessly:mfh
01/26/21