Sponsor
Alderman Spangenberg
Title
RESOLUTION APPROVING THE ISSUANCE OF $1,800,000 TAXABLE TAX INCREMENT REVENUE BOND (STATE AT MAIN DEVELOPMENT, LLC PROJECT) BY THE REDEVELOPMENT AUTHORITY OF THE CITY OF RACINE, PROVIDING FOR CONTRIBUTION PAYMENTS BY THE CITY AND APPROVING RELATED DOCUMENTS AND TRANSACTIONS
WHEREAS, the Redevelopment Authority of the City of Racine, Wisconsin (the "Authority") has determined certain property located in Tax Incremental District No. 13 ("TID No. 13") of the City of Racine, Wisconsin (the "City") to be blighted within the meaning of Section 66.1333, Wisconsin Statutes; and
WHEREAS, the Common Council, in a Resolution adopted on March 7, 2005, found such property to be "blighted property" within the meaning of Section 66.1333 (2m)(bm); and
WHEREAS, the Authority proposes to carry out a program of blight elimination and urban renewal with respect to such blighted property in TID No. 13, as described in the Project Plan for TID No. 13; and
WHEREAS in order to further their redevelopment efforts with respect to such blighted property in TID No. 13, the Authority and the City propose to enter into a Development Agreement substantially in the form attached hereto as Exhibit A (the "Development Agreement") with State at Main Development, LLC (the "Developer"); and
WHEREAS, pursuant to the terms of the Development Agreement, the Authority will authorize the issuance of its Taxable Tax Increment Revenue Bond in an amount equal to $1,800,000, or such lesser amount as is determined pursuant to the terms of the Development Agreement, (the "Bond") to the Developer in consideration for the obligations undertaken by the Developer under the Development Agreement.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City as follows:
Section 1. Agreement to Make Contribution Payments. In consideration of the benefits derived by the City from the issuance of the Bond, including blight elimination, urban renewal and the creation of tax base and jobs within the City, the City hereby agrees and covenants that it will make contribution payments to the Authority sufficient to pay the principal of and interest on the Bond, but only to the extent of any Net Tax Increment (as defined in the Development Agreement) (the "Contribution Payments"), and provided further that any such Contribution Payments shall be subject to future annual budgetary appropriations therefor and that neither such authority nor any such payment shall constitute an obligation of the City to make any such appropriation or any further payments. The Contribution Payments shall be "financing costs" of TID No. 13 under Section 66.1105(2)(f)1.b., Wisconsin Statutes, to the extent they constitute the payment of principal or interest on the Bond. The Common Council covenants that it will not voluntarily terminate TID No. 13 pursuant to Section 66.1105(7)(b), Wisconsin Statutes, prior to the maturity date of the Bond.
Section 2. Statement of Intent to Appropriate; Procedure. The Common Council hereby declares that, to the extent that Net Tax Increment is available in the special fund of TID No. 13, it fully expects and intends that it will appropriate such Net Tax Increment to meet its obligation to make Contribution Payments under Section 1 above, provided however, that such payment shall be subject to future annual appropriation by the Common Council.
On or before November 1 of each year, the Authority shall file with the City Treasurer the Authority's estimate of the amount of the City's obligation under Section 1 above, and the staff of the City shall include such amount in the City budget as submitted to the Common Council for consideration for the next succeeding fiscal year. If the Common Council does not budget and appropriate the amount of the City's obligation as estimated by the Authority, the City shall provide written notice to that effect to the Authority and to the Developer no later than 15 days after adoption and approval of the annual budget for that year. Any amount of Net Tax Increment that the Common Council does budget and appropriate to make Contribution Payments under Section 1 above shall be directed to payment to the Authority for payment of principal and interest on the Bond.
Any such payment by the City shall be a donation in assistance of the Authority, and the Authority shall not be liable for any repayment thereof.
Section 3. Approval of the Bond. The terms of the Bond as contained in the resolution to be considered by the Authority at its meeting on April 6, 2006, a copy of which has been provided to the City, are approved.
Section 4. Execution and Delivery of Documents. The Mayor and City Clerk are hereby authorized for and in the name of the City to execute and deliver any and all additional documents as may be necessary or desirable to effectuate the issuance of the Bond and the completion of the transactions contemplated hereby.
Section 5. Resolution a Contract. The provisions of this Resolution shall constitute a contract between the City and the Authority and the owner or owners of the Bond and after issuance of the Bond no change or alteration of any kind in the provisions of this Resolution may be made, until all of the Bond have been paid in full as to both principal and interest. The owner or owners of the Bond shall have the right in addition to all other rights, by mandamus or other suit or action in any court of competent jurisdiction, to enforce his or their rights against the City.
FISCAL NOTE: N/A