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File #: 101375    Version:
Type: Resolution Status: Passed
File created: 3/1/2011 In control: COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE
On agenda: Final action: 5/3/2011
Effective date:    
Title: Substitute resolution appropriating $250,000 from the Development Fund to Sweet Water Organics for economic development purposes, in the 14th Aldermanic District.
Sponsors: ALD. ZIELINSKI, ALD. BAUMAN, ALD. KOVAC, ALD. WADE, James N. Witkowiak
Indexes: DEVELOPMENT FUND, ECONOMIC DEVELOPMENT
Attachments: 1. Sweet Water Organics - Grow Zone Expansion & Operating Expenses, 2. City wins grant to develop urban farms MJS article 3-9-2011.pdf, 3. IBM Smarter Cities Challenge - Program Overview.pdf, 4. Milwaukee perch on menu at Obama fundraiser MJS article 4-13-2011.pdf, 5. Line Itemization for Sweetwater Organics Loan Proposal, 6. TERM SHEET.pdf, 7. Proposal - Final 4-21.pdf, 8. Hearing Notice List, 9. Proposed Sub A
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
5/10/20112 MAYOR SIGNED   Action details Meeting details Not available
5/3/20112 COMMON COUNCIL ADOPTEDPass14:1 Action details Meeting details Not available
4/26/20111 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE SUBSTITUTED

Minutes note: Individuals present: Amy Hefter - Legislative Reference Bureau Mike Mervis - Zilbar LTD James Godsil - Sweet Water Co Founder Josh Fraundorf - Sweet Water Organic President Emanuel Pratt - Sweet Water Foundation Dean Amhauz - Milwaukee Water Council Martha Brown - Dept of City Development Proposed sub A was presented by Ald. Zielinski. There were no objections. Ald. Witkowski moved to hold this item one cycle. Motion failed 3 noes, 1 ayes and 1 abstain Alds. Wade and Witkowiak requested to be added as co sponsors to this resolution. There were no objections. Ald. Davis moved, that in addition to the job requirements for this forgivable loan, Sweet Water Organics shall submit to the City documentation showing that, over the entire term of the loan, Sweet Water Organics has made at least a 50% (i.e., at least $125,000) match for the requested forgivable loan amount. Prevailed 5-0
Pass5:0 Action details Meeting details Not available
4/26/20112 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE RECOMMENDED FOR ADOPTIONPass5:0 Action details Meeting details Not available
4/20/20111 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/20/20111 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
4/4/20111 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HELD TO CALL OF THE CHAIR

Minutes note: Individuals present: Yves LaPierre - DCD Sweet Water Organic representatives: Josh Fraundrof - President & Co-Founder James Godsil - VP/Co-Founder David Baldus - President & Founder of Front Porch Pets, Inc. Ald. Zielinski moved to accept as part of the record the Sweet Water Organics - Grow Zone Expansion and Operating Expenses document provided by Mr. Fraundrof. There were no objections.
Pass4:0 Action details Meeting details Not available
3/29/20110 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
3/29/20110 COMMUNITY & ECONOMIC DEVELOPMENT COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
3/1/20110 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available
Number
101375
Version
SUBSTITUTE 2
Reference
 
Sponsor
ALD. ZIELINSKI, BAUMAN, KOVAC, WADE AND WIKOWIAK
Title
Substitute resolution appropriating $250,000 from the Development Fund to Sweet Water Organics for economic development purposes, in the 14th Aldermanic District.
Analysis
This resolution authorizes the expenditure of $250,000 from the Development Fund in the form of a forgivable loan to Sweet Water Organics to assist in a "Milwaukee Grow Zone" development project.
Body
Whereas, The 2011 Capital Budget for the City of Milwaukee provides for the Development Fund; and
 
Whereas, The City has an ongoing commitment to job retention and creation; and
 
Whereas, Sweet Water Organics is an urban farm that has re-purposed an unused industrial building in Milwaukee's Bay View neighborhood; and
 
Whereas, Virtually all of the product grown and raised at Sweetwater and sold to city vendors such as Empire Fish, La Marenda, and many others, creates a 2.75 economic multiplier factor in the work force; and
 
Whereas,  Future production would meet additional demand requested by such vendors as Roundy's, Metcalfe/Sentry  and SURG Restaurant Group; and
 
Whereas, These products are sold to retail outlets where they generate additional jobs and tax revenue and are making the city a recognized worldwide leader in the aquaponics  industry as Sweetwater's numerous appearances in the national and international media attest; and
 
Whereas, Sweetwater was one of 24 winners of the IBM Smaller Cities Challenge Grant, chosen from over 200 cities in 40 countries world-wide attesting to the power of its business concepts to attract global attention; and
 
Whereas, Numerous Milwaukee companies, foundations and educational entities (Great Lakes Water Institute, UWM, and MSOE, for example)  are working with Sweetwater to expand its capacity and to assist it in patenting and licensing its products and operating trade secrets; and
 
Whereas, Sweet Water Organics has provided the yellow perch that was served at a fundraiser dinner for President Obama and his guests on April 14, 2011, at mk Restaurant in Chicago; and  
 
Whereas, Sweetwater and its foundation currently provides opportunities for minority members in the community to learn life-long skills, trades and technology applications and apply them to careers at Sweetwater and other food producers in the city; and
 
Whereas, Sweetwater is committed to hiring as many as 20% of those trained minority members to full-time positions as they become available; and
 
Whereas, Sweetwater currently utilizes over 600 hours of minority member labor a month, estimated to rise to 1,400 hours monthly within 2 years, to assist in its operation, many of whom will go on to hone their skills and obtain well paying jobs at all levels within the market place; and
 
Whereas, A loan would provide Sweetwater an opportunity to greatly enhance its production volume, meet additional local and regional demand, as well as furthering its cutting edge food production ideas, while providing the highest quality, fresh food to Milwaukee, reducing the use of petroleum in food production, and providing a growing number of urban jobs; and
 
Whereas, Management and staff of Sweetwater have consistently demonstrated a total commitment to growing their business within the City of Milwaukee and raising and investing the capital necessary  to achieve success and profitability on its operating side, while at the same time utilizing its foundation to make significant contributions to individuals of all backgrounds within the city; and
 
Whereas, This combination of commitment offers Milwaukee huge potential for economic growth, job development, national and international recognition; and
 
Whereas, Jobs created through the Milwaukee Green Zone project will stay in Milwaukee, encourage workers to reside within Milwaukee city limits and be accessible career opportunities for entry-level "middle-skills" workers; now, therefore, be it
 
Resolved, By the Common Council of the City of Milwaukee, that the City Comptroller is directed to transfer $250,000 from the Development Fund Parent Account to the Sweet Water Organics Project to fund a $250,000 forgivable loan to Sweet Water Organics for the "Milwaukee Grow Zone" development project; and, be it
 
Further Resolved, That, in addition to the job requirements for this forgivable loan, Sweet Water Organics shall submit to the City documentation showing that, over the entire term of the loan, Sweet Water Organics has made at least a 50% (i.e., at least $125,000) match for the requested forgivable loan amount; and be it
 
Further Resolved, That the Commissioner of City Development and the City Attorney are directed to negotiate, draft and execute a loan agreement with Sweet Water Organics on behalf of the City of Milwaukee.
 
Requestor
 
Drafter
LRB125818-3
Amy E. Hefter
4/26/2011