Number
211611
Version
Reference
031578, 161075
Sponsor
ALD. ZAMARRIPA
Title
Resolution approving Amendment No. 2 to the Project Plan for Tax Incremental District No. 54 (Stadium Business Park), in the 8th Aldermanic District.
Analysis
Tax Incremental District No. 54 was created in 2004 for the purpose of facilitating redevelopment of the former Ampco Metal foundry site at South 38th and West Mitchell Streets, including construction of four multi-tenant light industrial and distribution facilities. The district was amended in 2016 for the purpose of donating positive tax increments to Tax Incremental District No. 59 (Bronzeville). This proposed Amendment No. 2 to Tax Incremental District No. 54 would provide up to $2,490,000 for public infrastructure improvements, $100,000 for administration and up to $2,839,648 in donations to Tax Incremental District No.74.
Body
Whereas, The Common Council of the City of Milwaukee (“Common Council”) adopted File No. 031578, on April 13, 2004 which approved a Project Plan (“Plan”) and created Tax Incremental District No. 54 (Stadium Business Park) (“TID No. 54” or “District”); and
Whereas, The Common Council adopted File No. 161075 December 13, 2016, which approved Amendment No. 1 to the Project Plan for the District; and
Whereas, To date, Tax Incremental District No. 74 (“TID No. 74”) has not generated any incremental value despite the re-determination of its base in 2014; and
Whereas, TID No. 54 and TID No. 74 remain in existence and have not been statutorily terminated; and
Whereas, The Department of City Development (“DCD”) staff recommended that TID No. 54’s Project Plan be amended under Wis. Stat. 66.1105 (4)(h)1, with approval by the Common Council, the Redevelopment Authority of the City of Milwaukee (“RACM”) and the Joint Review Board, and with the findings in 66.1105 (4)(g):
• To donate up to $2,839,648 from TID No. 54 to TID No. 74 by allocating positive tax increments from TID No. 54 to TID No. 74 for each of years 2026-2030 as allowed by Wis. Stat. 66.1105(6)(f); and
• To also include using TID No. 54 increment to fund up to $2,490,000 in public infrastructure improvements within one-half mile radius of TID No. 54’s boundary as allowed by Wis. Stat. 66.1105 (2)(f)1.n. and by 66.1105 (4m)(d) and $100,000 for administration; and
Whereas, As Amendment 2 indicates, the proposed donation from TID No. 54 to TID No. 74 meets the requirements in Wis. Stat. 66.1105(6)(f) (TID Nos. 54 and 74 both were created by RACM and approved by the Common Council and TID Nos. 54 and 74 have the same overlying taxing jurisdictions, TID No. 74 was created upon a finding that not less than 50 percent by area of real property within TID No. 74 is blighted and in need of rehabilitation, TID No. 54 will first satisfy its current year debt service and project cost obligations before the allocation of increment from TID No. 54 to TID No. 74, and the life of TID No. 54 will not be extended), and Amendment 2 lists the proposed donation amounts and methodology to calculate those donation amounts; and
Whereas, Amendment 2 lists the type of public infrastructure improvements to be made within the one-half mile radius of TID No. 54’s boundaries to be included as TID No. 54 project costs and shows the area that those improvements will be made in, all as allowed by Wis. Stat. 66.1105 (2)(f)1.n.; and
Whereas, Pursuant to Section 66.1105(4)(h)(1), Wisconsin Statutes, on February 17, 2022, RACM conducted a public hearing on Amendment No. 2 to the Project Plan for the District (“Amendment”), approved such Amendment by resolution and submitted such Amendment, a copy of which is attached to this Common Council File, to the Common Council for its approval; and
Whereas, Section 66.1105(4)(g) and (h)(1), Wisconsin Statutes, provides that an amendment to a Project Plan shall be approved by the Common Council with the adoption of a resolution, which contains findings that such amendment is feasible and in conformity with the Master Plan of the City of Milwaukee (“City”); and
Whereas, The Amendment will fund public infrastructure improvements within one half-mile of the District’s boundaries; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that it finds and determines as follows:
1. The Amendment retains the existing boundaries of the District and does not alter the number of properties within the District. Therefore, the findings made in File No. 060961, pursuant to Section 66.1105(4)(gm)l and 4, Wisconsin Statutes, are unchanged.
2. The Amendment revises the project costs to be supported by the District and revises the Economic Feasibility Analysis that is part of the Project Plan and makes related changes regarding the timing of project costs.
3. The project costs provided in the Amendment relate directly to promoting development consistent with the City's Master Plan and with the purpose(s) for which the District was created under Section 66.1105(4)(gm)4a, Wisconsin Statutes.
4. The percentage of the aggregate value of the equalized taxable property of the District, plus the incremental value of all other existing Tax Incremental Districts, does not exceed the statutory maximum 12 percent of the aggregate value of total equalized value of taxable property within the City; and, be it
Further Resolved, That the Amendment is approved and the Project Plan for the District, as amended, is feasible, in conformity with the Master Plan for the City and will promote the orderly development of the City; and, be it
Further Resolved, That:
1. The City Clerk is directed to notify the Wisconsin Department of Revenue, in such form as may be prescribed by said Department, of the approval of this Amendment pursuant to the provisions of Section 66.1105(5), Wisconsin Statutes.
2. The City Comptroller is directed to transfer the sum of $2,590,000, plus up to 10 percent for capitalized interest, from the Parent TID Account to Project Account No. 0036-1910 TD05480000 for the purpose of providing funds necessary to implement the Amendment.
3. The City Comptroller is directed to transfer the tax incremental revenue received by TID No. 54 to such accounts appropriate for TID No. 74, as shown in and contemplated by the Amendment and the calculation methodology reflected therein.
4. The City Comptroller, in conjunction with the Commissioner of DCD, is directed to perform such acts and to create such accounts and subaccounts and make appropriate transfers, upon written request by DCD, for all revenue or expenditure activity under this resolution.
5. The proper City officials are directed to execute any documents or agreements necessary for the purposes of implementing the Amendment on terms substantially in accordance with the Development Agreement.
Drafter
DCD:Alyssa.Remington:aer
02/08/22/A