Number
110084
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. WADE and HAMILTON
Title
Substitute resolution authorizing the City of Milwaukee to reinvest and transfer funds to facilitate a New Markets Tax Credit financing for the Century City Industrial Park Project and the Villard Square Grand Family Housing & Library Mixed Use Housing Community.
Analysis
This resolution authorizes the City of Milwaukee to reinvest and transfer project revenue to the Redevelopment Authority and/or a Redevelopment Corporation and authorizes the Redevelopment Authority and Redevelopment Corporation to expend funds in order to perform all actions necessary under Sec. 66.1301 through 66.1329 stats. to implement the Century City Industrial Park Project and the Villard Square Grand Family Housing & Library Mixed Use Housing Community.
Resolution
Body
Whereas, In September 2009, the Common Council approved a $34.6M budget for redevelopment of the A.O. Smith/Tower Automotive site (renamed Century City) into a business park as part of TID No. 74; and
Whereas, The Common Council adopted Resolution File No. 091666 on April 13, 2010 and RACM's commissioners adopted Resolution No. 10192 on April 15, 2010 (collectively the "Villard Library Resolutions") providing for the implementation of the Villard Square Grand Family Housing & Library Mixed Use Housing Community (the "Villard Library Project"); and
Whereas, RACM has applied for and received a New Markets Tax Credit ("NMTC") allocation in the amount of $18,850,000 from the Milwaukee Economic Development Corporation ("MEDC") which will allow the use of the NMTCF to fund a portion of the costs of both the Century City Project and the Villard Library Project; and
Whereas, U.S. Bank is willing to provide $5 million in equity in exchange for $7 million in tax credits; and
Whereas, The NMTC financing is to be implemented pursuant to a Cooperation Agreement between the City and the Redevelopment Authority as provided in Common Council Resolution File No. 110082 and requires various transfers of funds among the City, the Redevelopment Authority and the Century City Redevelopment Corporation, an entity to be created pursuant to the Cooperation Agreement and wholly owned by the City; and
Whereas, The fund transfers and reinvestments required to implement the NMTC financing are described in the Century City/Villard Square NMTC Financing Project Description attached to this file; now, therefore, be it
Resolved by the Common Council of the City of Milwaukee that the fund transfers and reinvestments described in the Century City/Villard Square NMTC Financing Project Description are hereby approved and, be it
Further Resolved, that the City's Comptroller is hereby authorized and directed to proceed with such fund transfers and reinvestments in accordance with the Term Sheet, the Cooperation Agreement, and the NMTC Project Financing documents described in the Cooperation Agreement.
Requestor
City Attorney
Drafter
TOG:mll
June 3, 2011
1089-2011-1507/170015