Alderman Weidner's email on Purchase of Machinery Row Development

From: Weidner, Sandy Sent: Monday, December 15, 2014 8:03 AM To: Weber, Robert Cc: Friedel, Thomas Subject: Hiring outside consultants City Attorney Weber, Can you please provide me, in writing, prior to tomorrow's council meeting, the protocol required for the mayor or city administrator, to hire outside attorneys to represent the City in matters such as the proposed development. I always understood that the request would go though finance & personnel committee, and ultimately, the Council. I also want to know how the monies spent out of the "outside council" are reported out to the Council.

Was the City Attorney's office asked to make a recommendation on the law firm "the city" hired as their special assistants in the Machinery Row development. How is a law firm vetted to be sure the City is getting the most qualified and experienced? Does this go out for competitive bid? Or is the firm selected based on a relationship with "the city"?

How much has the City been billed for the special assistance from the firm representing the City in the Machinery Row development? I would like to be updated monthly on their billing/payments. Who best can provide that information?

And finally, exactly how much is Rodney Blackwell paying for each individual property in this development? I know we are proposing to borrow him 4.5 million, but that doesn't mean that is how much he is paying. The properties are assessed, in total, at $4,046,200. Properties in my neighborhood are going for roughly half their assessed value. Why would we borrow $454,000 more than assessed value? For that matter, why would the City purchase the remaining 3 properties for 1.8 Million when those properties are assessed at $1,540,600. Thanks, so much Rob. Best Sandy Weidner Alderman, 6th District City of Racine

From: Friedel, Thomas Sent: Wednesday, December 17, 2014 1:59 PM To: Coe, Jeff; DeHahn, Ray; Diehl, Edward; Hart, Ronald; Helding, Greg; Kaplan, Jim; Kaprelian-Becker, Melissa; McCarthy, Terry; Morgenroth, James; Perez, Henry; Sarrazin, Krystyna; Shakoor, Q.A.; Shields, Michael; Weidner, Sandy; Wiser, Dennis Cc: Weber, Robert; Sadowski, Matthew; OConnell, Brian Subject: Purchase price for 'machinery row' properties

Alders: Alderman Weidner requested this information and I am copying all of you so that everyone has the same information tonight.

City Administrator Friedel, Please provide me with the price the developer is paying for each individual property that the City is loaning him money for.

Also, please provide the price the City is paying for each individual property in this project so that this development deal can go forward.

Alderman Weidner, The Purchase Price for the Olson (900 Water Street) parcel is $1.5 Million. Assessed value is $1,422,000.

The Purchase Price for the BJJ, LLC (820 Water Street) parcel is $1.9 Million. Assessed value is $1,057,400.

The Purchase Price for the Azarian entity (308 Fourth Street, 470 Water Street, 512 Water Street, 702 Water Street, 712 Water Street, 800 Water Street and 1010 Water Street) parcels is $1.1 Million. Combined assessed value is $1,741,100.

The combined assessed value for the parcels FDP will acquire with the City loan was $4,220,100. These prices were negotiated between FDP and Sellers. As you can see the combined 4.5 Million "total" purchase price is above the assessed rates.

The other three Olson parcels being purchased by the city for $1.8 Million have a combined assessment of $1,541,200. The purchase of these parcels is required to get the sale of the 900 Water Street parcel.

At our meeting on Wednesday December 10, I did inform the Council at the closed session that the negotiated prices were above the overall combined assessed values and that does often happen in the development context, especially when you are assembling tracts of land. (See attached memo from the City Assessor.)

Attached also for your reference is a copy of the property listing from the TID plan with the list of properties and their assessed and equalized values from TID plan adoption this year.

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