From: Friedel, Thomas Sent: Friday, September 02, 2016 5:08 PM To: Coe, Jeff; DeHahn, Ray; Jones, Mollie; Land, Mary; Larrin, Tracey; Lemke, Melissa; McCarthy, Terry; Meekma, Jason; Morgenroth, James; Perez, Henry; Shakoor, Q.A.; Shields, Michael; Smetana, Steve; Weidner, Sandy; Wiser, Dennis Subject: CC Agenda for Tuesday
Alders: The agenda for Tuesday night has two items that we have discussed in closed session of the Executive Committee. Both items have been recommended for approval by the RDA and the F&P Committee. The items appear under the RDA’s approval section. Here is a brief summary of those two items. Item 0348-16 is the request for approval of acceptance of the Knowles-Nelson Stewardship grant from the WI DNR in the amount of $470,750.00. This is a re-imbursement grant that will cover ½ of the cost of the purchase of 5.75 acres of land along the Root river between Marquette and Fourth St. The other half of the cost will be considered a donation from FDP Racine, LLC and match for the grant. The RDA and City will bring $470,750.00 to the Closing on the property and be reimbursed for that amount from the WI DNR at a later date. There are sufficient funds in the IG account to allow this transaction. Item 0742-16 is the request to approve a second amendment to the development agreement with FDP Racine LLC for the Machinery Row Development. The amendment extends the timeline for financing and other deadlines to December 15, 2016 to allow the developer additional time to secure a third party loan. The amendment ensures that the City will continue to receive 1% quarterly interest payments on the loan during the time of this extension. It also requires that the developer place the proceeds from the sale of the riverfront property ($470,750.00) into an escrow account to be used for the project at the sole discretion of the City. The city will use the developer proceeds held in escrow from the sale($470,750.00) for the project in the following manner: 1) 1) To pay at Closing of the riverfront property any unpaid costs of demolition of a portion of the 900 Water Street Project building that extended into that property 2) 2)To pay at Closing of the riverfront property any real estate taxes currently owed on any portion of the Machinery Row Property 3) 3)To replenish the escrow account for Interest by depositing $22,500 into the Interest Escrow Account to pay for the quarterly interest payments to the City on the City Loan 4) 4)To pay for expenses relating to improving the property, including improved rights-of-way and riverfront promenade, as determined by the sole discretion of the City It is in the city’s best interest to take these steps to amend the agreement to allow more time to move forward with this redevelopment project. I strongly recommend that you approve this recommendation. If you have any questions, please do not hesitate to call me.
Regards, Tom Thomas Friedel Racine City Administrator 730 Washington Ave. Racine, WI 53403 262-619-2540