Number
231177
Version
SUBSTITUTE 1
Reference
220997, 190401, 211079, 230878
Sponsor
ALD. PÉREZ
Title
Substitute resolution authorizing the Department of City Development to issue a limited term letter of site control for the City-owned property located at 1747 South 12th Street, in the 12th Aldermanic District.
Analysis
This substitute resolution authorizes the Department of City Development to issue a limited term letter of site control to BBE Investments & Development, LLC in partnership with Cinnaire Solutions, allowing the partnership a period of time to seek Wisconsin Housing and Economic Development Authority 9 percent competitive tax credit financing.
Body
Whereas, File No. 220997 declared the City-owned parking lot at 1747 South 12th Street (the “Property”) surplus to municipal needs; and
Whereas, The Department of City Development (“DCD”) received an unsolicited offer from BBE Investments & Development, LLC in partnership with Cinnaire Solutions (the “Proposed Buyers”), to acquire the Property, contingent upon a 2024 Wisconsin Housing and Economic Development Authority (“WHEDA”) tax-credit award; and
Whereas, Proposed Buyers, or their assignee, wish to acquire the Property to construct a housing development that would rely on financing from competitive 9 percent WHEDA Low Income Housing Tax Credits (“LIHTC”); and
Whereas, BBE Investments & Development, LLC owns a privately-owned parking lot located nearby the Property at 1718 South 12th Street; and
Whereas, BBE Investments & Development, LLC has other investment property in the immediate area of the Property; and
Whereas, The City of Milwaukee and BBE Investments & Development, LLC have both experienced negative activities in their respectively owned parking lots and are seeking this development as a way to abate said activity; and
Whereas, The City of Milwaukee seeks to expand affordable housing opportunities in neighborhoods identified as being potentially subject to displacement; and
Whereas, The Proposed Buyers acknowledge that if they obtain competitive 9 percent WHEDA LIHTC credits in the 2024 round and construct the buildings, the Proposed Buyers shall be responsible for following the City of Milwaukee Anti-Displacement Neighborhood Preference Policy; and
Whereas, The Proposed Buyers have obtained a dimensional variance from the Board of Zoning Appeals approval for the Proposed Buyers development; and
Whereas, The Common Council of the City of Milwaukee’s approval of a limited term letter of site control will allow the Proposed Buyers, or their DCD-approved assignee, sufficient time to finalize and submit their WHEDA application and to determine whether WHEDA will approve its application for a 2024 award of competitive 9 percent credits; and
Whereas, In the event the Proposed Buyers are not awarded competitive 9 percent WHEDA LIHTC credits in the 2024 allocation (expected to be announced in the spring of 2024), DCD will market the property for sale with a request for proposals; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that a Site Control Report, a copy of which is attached to this Common Council File, is approved and DCD is authorized to issue to Proposed Buyers, or their DCD-approved assignee, a limited term letter of site control in substantial accordance with said Site Control Report.
Drafter
DCD:Matt.Haessly:mfh
11/21/23/B