Alderman Weidner email "Please provide me with the details relevant to the escrow account"

From: Friedel, Thomas Sent: Wednesday, February 08, 2017 2:08 PM To: Weidner, Sandy Subject: RE: Purchase of 700 Water St.

We have been working on a plan with that thought in mind.

From: Weidner, Sandy Sent: Wednesday, February 8, 2017 1:09 PM To: Friedel, Thomas Subject: RE: Purchase of 700 Water St.

Tom. Please direct staff to repair the roof at 820 Water St. similiarly to the repair that is taking place on the roof at 615 Marquette St. per direction from the RDA. Funding for the maintenance can be acquired from the escrow account as indicated in your response from the email below " Lastly, the intention for use of

the remainder of the funds would be to expend them as needed on Machinery Row, preferably for improvements, upkeep, and maintenance there."

Thanks, Sandy

From: Friedel, Thomas Sent: Tuesday, January 24, 2017 4:45 PM To: Weidner, Sandy Cc: Letteney, Scott Subject: RE: Purchase of 700 Water St.

Sandy,

Below is the relevant language in the Second Amendment to the Development Agreement with FDP. This was approved by Resolution on Sept. 9.

The escrow account is held by Landmark Title. I have highlighted the language that provides details about the use of the account. Items 1 and 2 were completed as a part of the closing on the acquisition.

The only other expenditure to date was to pay an outstanding invoice for $30,000. to Vandewalle & Associates.

Resolution 305-16 grants the authority to use the funds in the account. I have highlighted that area of the Resolution further below. The account is not being used to pay SB Friedman.

Lastly, the intention for use of the remainder of the funds would be to expend them as needed on Machinery Row, preferably for improvements, upkeep, and maintenance there.

From the Second Amendment to the Development Agreement

(c) Public Improvements (amending Sec. 11 of the Development Agreement).

(1) Developer will transfer full ownership, free and clear of liens, to the City of approximately 5.5747 acres of the Property as depicted on the attached Exhibit D (the “Promenade Propertyâ€?) in accordance with the Purchase Agreement between the City and Developer. This Purchase Agreement provides that Developer will donate to the City one-half of its fee title interest of the Promenade Property that will eventually contain public improvements, improved rights-of-way and river promenade. The City will pay ½ of the appraised value for the other one-half of the fee title interest in the Promenade Property. After closing the City, will be reimbursed for this expenditure through the Knowles-Nelson Grant

as a matching grant for the purchase of the Promenade Property.

At the closing on the Promenade Property, the Developer shall place all proceeds from the purchase in a separate escrow with an escrow agent approved by the City establishing the Project Escrow, as previously defined. The Project Escrow funds shall be utilized by the City, in its sole discretion, to pay for expenses related to redeveloping the Promenade Property, including but not limited to the following: (1) pay for any unpaid costs of demolition of a portion of the 900 Water Street Project building that extended into the Promenade Property owed to The MRD Group, Inc.; (2) to pay for any real estate taxes currently owed on any portion of the Property; (3) to replenish the escrow account held by Landmark Title under Sec. 4(d) of the Development Agreement, as amended, (the “Interest Escrow�) by depositing $22,500 into the Interest Escrow to pay for the quarterly interest payments to the City on the City Loan; and (4) for expenses relating to improving the Promenade Property, including improved rights-of-way and river promenade as determined by the sole discretion of the City. The City shall be entitled to make withdraws from the Project Escrow for expenses relating to improving the Promenade Property, or the Property in-general from time-to-time, without confirmation or approval from Developer. The City may, if it so chooses, to immediately use funds from the Project Escrow at the closing on

the Promenade Property to clear title of any liens for any unpaid costs of demolition and for unpaid real estate taxes on the Property.

From Resolution 305-16

BE IT FURTHER RESOLVED that the Chairman, Executive Director, Mayor, Clerk and City staff are authorized to execute the Second Amendment and all documents necessary to carry out the intent of this resolution and the Second Amendment, to acquire the Promenade Property, to expend funds in accordance with the Second Amendment, and to take such actions and make such decisions necessary to carry out the intent of this resolution.

Tom

Thomas Friedel Racine City Administrator 730 Washington Ave. Racine, WI 53403 262-619-2540

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From: Weidner, Sandy Sent: Tuesday, January 24, 2017 8:22 AM To: Friedel, Thomas Cc: Letteney, Scott Subject: Purchase of 700 Water St.

Tom, I understand that the City purchased 700 Water St. from Rodney Blackwell in December, 2016. I also understand that the 460,000 paid went into an escrow account rather than directly to Rodney Blackwell.

Please provide me with the details relevant to the escrow account, where it is located, what kind of expenditures have been withdrawn at this point, who has access to the account and what type of expenditures do you anticipate that the escrow account will be used for? Is this escrow account being tapped for SB Friedman's expenses?

Thanks in advance, Sandy Weidner Alderman, 6th District