Title
Resolution to authorize $4.2 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, FIRE has granted two previous allocations of New Markets Tax Credits (NMTC) to the development of the Renaissance Faire office structure in West Allis; and
WHEREAS, these tax credits have enabled Renaissance Faire to make building improvements such that Johnson Controls, Inc. is moving operations of a new department, along with the potential for 800 jobs, to West Allis; and
WHEREAS, even with the influx of an additional investment of New Markets Tax Credits, 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 City of West Allis will loan to FIRE the sum of up to $4.2 million, at an interest rate of 4.5%, amortized over a 15 year period but paid in full with a 7-year balloon note with principal repayment guaranteed by FIRE and its future income stream; and
WHEREAS, FIRE will then loan the funds to Joel Lee to fund development of a parking structure and other improvements to Renaissance Fair under the identical loan terms to the City'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 $4,200,000 to the First-Ring Industri...
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