Title
Resolution to authorize the Community Development Authority of the City of West Allis (the "CDA") to make a $1.0 million loan to First-Ring Industrial Redevelopment Enterprise (FIRE).
Body
WHEREAS, the City of West Allis (the "City") has established the creation of the First-Ring Industrial Redevelopment Enterprise (FIRE) in order to further economic development efforts within the City of West Allis and southeastern Wisconsin; and,
WHEREAS, the CDA has provided two previous loans to the development of the Whitnall Summit office structure in West Allis; and,
WHEREAS, these loans have enabled Whitnall Summit to make building improvements for Children's Hospital, Brookdale Senior Living, etc.; and,
WHEREAS, even with the influx of an additional investment, there remains a financing gap; and,
WHEREAS, FIRE has exit fees from previous NMTC loans that it will be receiving over the next five to seven years in an amount in excess of $9 million; and,
WHEREAS, the City Comptroller and Director of Development are recommending a gap-financing proposal wherein the CDA will loan to FIRE the sum of up to $1.0 million, at an interest rate of 6%, amortized over a 30-year period but paid in full with a balloon note March 1, 2017 with principal repayment guaranteed by FIRE and its future income stream; and
WHEREAS, FIRE will then loan the funds to Whitnall Summit Development Corp. to fund building improvements to the office complex located at 6737 W. Washington St. under the identical loan terms to the CDA's loan to FIRE described above.
NOW, THEREFORE, BE IT RESOLVED by the Mayor and Common Council of the City of West Allis:
1. That the Director of Development, or his designee, along with the City Comptroller, or his designee, with the approval of the City Attorney, or his designee, and the Mayor, is hereby authorized and directed to cause the City to lend up to $1,000,000 to the First-Ring Industrial Redevelopment Enterprise, in one or more loans, for purposes of providing cash proceeds to be loaned to Whitnall Summit Development Corp. for building improvements at 6737 W. Washington St., located within the City of West Allis, upon such terms as they deem necessary or desirable, and to take any and all actions in connection therewith including, without limitation, negotiating, executing, delivering, and performing obligations under any and all documents in connection therewith including, without limitation, loan commitments, loan agreements, mortgages, notes, guaranties, security agreements, escrow agreements, certificates, affidavits, assignment agreements, pledges, disbursing agreements, subordination agreements, environmental agreements, indemnification agreements, land use restriction agreements, operating reserve agreements, replacement reserve agreements, working capital agreements, grant agreements, and financing statements.
2. That the Director of Development, or his designee, along with the City Comptroller, or his designee, with the approval of the City Attorney, or his designee, and the Mayor, is hereby authorized and directed to take any and all other actions on behalf of the City which they deem necessary or desirable in connection with the Project including, without limitation, negotiating, executing, delivering, and performing obligations under any and all documents in connection with the Project including, without limitation, development agreements, property management agreements, consulting agreements, escrow agreements, certificates, affidavits, reimbursement agreements, and assignment agreements.
3. That the Director of Development, or his designee, along with the City Comptroller, or his designee, with the approval of the City Attorney, or his designee, and the Mayor, is hereby authorized and directed to take any and all other actions deemed necessary or desirable by him to effectuate the intent of the foregoing Resolutions.
4. That the City Attorney be and is hereby authorized to make such substantive changes, modifications, additions and deletions to and from the various provisions of any and all loan commitments, loan agreements, mortgages, notes, guaranties, security agreements, escrow agreements, certificates, affidavits, assignment agreements, pledges, disbursing agreements, subordination agreements, environmental agreements, indemnification agreements, land use restriction agreements, operating reserve agreements, replacement reserve agreements, working capital agreements, grant agreements and financing statements, development agreements, property management agreements, consulting agreements, escrow agreements, certificates, affidavits, reimbursement agreements, assignment agreements, attachments, exhibits, addendums, amendments and/or any other documents as may be necessary and proper to correct inconsistencies, eliminate ambiguity, and otherwise clarify and supplement said provisions to preserve and maintain the general intent thereof, and to prepare and deliver such other and further documents as may be reasonably necessary to complete the transactions contemplated therein.
cc: Department of Development
Department of Finance
City Administrative Office
DEV-R-773-9-2-14