Sponsor
Alderman Shakoor
Title
Development Agreement Between the City, the Redevelopment Authority of the City, Herman & Kittle Properties, Inc., 1520 Clark Street, L.P., and Wisconsin Social Services of Wisconsin and Upper Michigan, Inc.
WHEREAS, through a grant from the United States Environmental Protection Agency (US EPA), the City of Racine established a $1,000,000 Brownfield Cleanup Revolving Loan Fund (BC-RLF) (Common Council Res No. 10-2162) with supplemental funding in the amount of $500,000 received in May 2016; and
WHEREAS, City staff presents a Development Agreement to provide financial assistance through the BC-RLF for review and recommendation to the Common Council between Herman & Kittle Properties, Inc.; Lutheran Social Services of Wisconsin and Upper Michigan, Inc.; and the City of Racine; and
WHEREAS, the development agreement is for financial assistance in the form of a BC-RLF loan to the developer for the purposes of conducting environmental response activities at approximately 3.07 acres at 1520 and 1536 Clark Street for a multi-family residential development. The subject property is currently a large industrial building that requires environmental clean up and incentives to facilitate an historic, adaptive reuse of the property. The City views this development as a catalyst development within the Uptown Neighborhood Business Improvement District. Evaluation of the project financials show that this project cannot support additional direct debt to cover the extraordinary $1.3 brownfield cleanup costs associated with this project; and
WHEREAS, the redevelopment will result in new 65 rental units targeted to low and moderate income veteran households, and nine market rate units; there is a veteran’s preference for rental tenants, but non-veterans may also be tenants in the building; the total investment proposed by the developer is over $18 million; the total resulting real property tax and personal property tax assessment from this inves...
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