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File #: 201674    Version:
Type: Resolution Status: Passed
File created: 4/13/2021 In control: COMMON COUNCIL
On agenda: Final action: 5/4/2021
Effective date:    
Title: Resolution approving a Project Plan and a Development Agreement, authorizing expenditures and creating Tax Incremental District No. 108 (5th and Michigan), in the 4th Aldermanic District.
Sponsors: ALD. BAUMAN
Indexes: TAX INCREMENTAL DISTRICTS, TAX INCREMENTAL FINANCING
Attachments: 1. TID 108 Project Plan Updated 4-21-21, 2. Fiscal Impact Statement, 3. Equity Impact Statement, 4. Comptroller Response, 5. Milwaukee Tool Initial Project Assessment, 6. MMAC Milwaukee Tool support letter, 7. City Attorney Letter, 8. PowerPoint Presentation, 9. Mayor support letter, 10. Milwaukee Downtown BID 21 Support Letter for Milwauke Tool Proposal, 11. Bublr Support Letter, 12. CARW Support Letter, 13. WAM DC Letter, 14. Hearing Notice List, 15. Motion by Ald Dimitrijevic, 16. Development Agreement (Milwaukee Tool)
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
5/12/20211 MAYOR SIGNED   Action details Meeting details Not available
5/4/20211 COMMON COUNCIL ADOPTEDPass15:0 Action details Meeting details Not available
4/27/20210 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE AMENDED

Minutes note: Appearing: Mayor Tom Barrett Lafayette Crump, Dept. of City Development Commissioner Dan Casanova, Dept. of City Development Ty Staviski, Milwaukee Tool Ald. Khalif Rainey, 7th Ald. Dist. Ald. Chantia Lewis, 9th Ald. Dist. Ald. Russell Stamper, II, 15th Ald. Dist. Jeremy McKenzie, City Attorney's Office Joshua Benson, Comptroller's Office Public testimony: Anthony Steward, MASH & SEIU Local 1 Jack Hanson, MASH & SEIU Local 1 Peter Rickman, MASH & SEIU Local 1 Marcelia Nicholson, MASH Tim Sheehy, MMAC Beth Weirick, BID 21 Ugo Nwagbaraocha, NAMC Tim Frautschi, Downtown Neighbors Association Stacie Callies, Westown Association BID 5 Ald. Dimitrijevic moved to amend the file by inserting the following “further resolved” clauses after the final “further resolved” clause in the current version: Further resolved, that the Department of City Development shall provide reports to the Common Council demonstrating Milwaukee Tool’s compliance with the requirements set forth in this development agreement relating to job creation; wages; employee race, gender, and residency; and wages provided to those providing contracted services; and, be it Further Resolved, That this reporting shall include, but not be limited to, post-construction jobs; and, be it Further Resolved, That these reports shall be submitted annually during the life of the TIF district; and be it Further Resolved, That the Department of City Development is directed to work with the Common Council - City Clerk - Legislative Reference Bureau to draft an ordinance establishing reporting requirements substantially similar to that described above for all future Tax Incremental Financing districts; and be it Further Resolved, That this ordinance shall also codify the principles of Common Council File Number 190592 and apply them to all future Tax Incremental Financing districts to the fullest extent allowed by law. (Prevailed 4-0-1)
Pass4:0 Action details Meeting details Video Video
4/27/20211 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE RECOMMENDED FOR ADOPTIONPass4:0 Action details Meeting details Not available
4/22/20210 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/22/20210 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/22/20210 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/22/20210 ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/13/20210 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available
Number
201674
Version
SUBSTITUTE 1
Reference

Sponsor
ALD. BAUMAN
Title
Resolution approving a Project Plan and a Development Agreement, authorizing expenditures and creating Tax Incremental District No. 108 (5th and Michigan), in the 4th Aldermanic District.
Analysis
Tax Incremental District No. 108 consists of one property at 501 West Michigan Street. The District is proposed to assist Milwaukee Tool (the “Company”) in redeveloping the building at 501 West Michigan Street and as an incentive for adding employment in the City of Milwaukee (“City”). Funds from the District will be used to provide an initial $12,100,000 grant (“Initial Grant”) to the Company for locating at least 1,210 employees at the facility. A subsequent grant of up to $7,900,000 (“Subsequent Grant”) may be provided to the Company from the District for adding an additional 790 employees. After the City is fully reimbursed by tax increment generated from the District for the Initial Grant and associated debt service costs, the Subsequent Grant may be provided to the Company via annual payment to the Company of 100 percent of the incremental taxes generated from the District until such time as up to $7,900,000 is repaid at an interest rate of 4.5 percent, over a period not to exceed 20 years. The District will also fund up to $200,000 in administrative expenses.
Body
Whereas, Chapter 105 of the Laws of 1975 of the State of Wisconsin, with amendments from other chapters of said Laws, created Section 66.1105, Wisconsin Statutes, titled “Tax Increment Law;” and

Whereas, Section 66.1105(4) of the Tax Increment Law sets forth certain criteria that the Common Council of the City of Milwaukee (“Common Council”) and the Redevelopment Authority of the City of Milwaukee (“RACM”) must follow to create a Tax Incremental District (“TID” or “District”) and approve a project plan for a TID; and

Whereas, Pursuant to Section 66.1105(4)(a) through (gm), Wisconsin Statutes, on April 15, 2021 RACM...

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