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...
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