City of Milwaukee - File #: 091367

• File #: 091367
• Version: 1
• Type: Resolution
• Status: Passed
• File created: 2/9/2010
• In control: ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE
• Final action: 3/2/2010
• Title: Substitute resolution approving Amendment No. 1 to the Cooperation, Contribution and Redevelopment Agreement for Tax Incremental District No. 49, Cathedral Place, in the 4th Aldermanic District.
• Sponsors: THE CHAIR
• Indexes: AGREEMENTS, TAX INCREMENTAL DISTRICTS, TAX INCREMENTAL FINANCING

Date	Ver.	Action By	Action	Result	Tally
3/9/2010	1	MAYOR	SIGNED
3/2/2010	1	COMMON COUNCIL	ADOPTED	Pass	14:0
2/23/2010	0	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	RECOMMENDED FOR ADOPTION; Minutes note: Individuals appearing: Jim Scherer, Department of City Development Tom Gartner, City Attorney's Office Craig Kammholz, Comptroller's Office Mr. Kammholz says that two companion files to this resolution will be heard at the next Finance and Personnel meeting.	Pass	4:0
2/19/2010	1	CITY CLERK	DRAFT SUBMITTED
2/17/2010	0	ZONING, NEIGHBORHOODS & DEVELOPMENT COMMITTEE	HEARING NOTICES SENT
2/9/2010	0	COMMON COUNCIL	ASSIGNED TO

Number
091367
Version
SUBSTITUTE 1
Reference
011469
Sponsor
THE CHAIR
Title
Substitute resolution approving Amendment No. 1 to the Cooperation, Contribution and Redevelopment Agreement for Tax Incremental District No. 49, Cathedral Place, in the 4th Aldermanic District.
Analysis
In 2002, the City created TID No. 49 to assist the development of the Cathedral Place office, condominium and retail complex at East Wells Street and North Jackson Street. Through TID No. 49, the City authorized RACM to construct, own and operate the parking ramp connected to the project at 555 East Wells Street. The parking ramp was financed with RACM variable rate revenue bonds in the initial amount of $25.4 million.

The bonds are payable from operating revenue from the parking ramp, and tax increment revenue from the TID. Payment on the bonds is secured by a direct pay letter-of-credit issued by JPMorgan Chase Bank, which letter-of-credit expires May 15, 2010. Payment on the bonds is further secured by a Support Agreement from the developer of the Project and by the Moral Obligation pledge of the City to restore any draws made from a reserve established to further secure the bonds.

JPMorgan Chase is willing to extend its letter-of-credit, on the terms provided in this file, only if the City upgrades its Moral Obligation Pledge to a Legal Obligation. The attached Funding Agreement creates this legal obligation by budgeting sufficient contingent borrowing to directly reimburse the bank for any draws on its letter-of-credit.

To date, there have been no draws on the letter-of-credit, and the outstanding balance of the bonds is $16.8 million, of which $1.4 million will be redeemed on March 23, 2010.
Body
Whereas, The City of Milwaukee (“City”) created Tax Incremental District No. 49 (“TID No. 49”), Cathedral Place, to assist in the development of the Cathedral Place office, residential and retail project located at the corner of East Wells Street and North Jackson Street (the ...