City of Oak Creek

Common Council Report

Meeting Date :April 15, 2003

Item No.:         4

Recommendation:  That the Council adopt Resolution No.10227-033103, which would approve a supplemental development agreement between the City and DEMCO Wisconsin II, LLC for the development of lands within TIF District No. 6.

Background:  Michael DeMichele, Director of Development for the DeMattia Group is requesting an amendment to the development agreement between the City and DEMCO Wisconsin II, LLC for the Creekside Corporate Park in the 9800 block of South 13th Street.  Additional information on the request is contained in the attached letter.

The original development agreement was approved by the Council in October of 2000.  At that time it was envisioned that the DeMattia Group would be the sole developer of lands within the park, which is also the City’s 6th TIF district.  Accordingly the development agreement did not anticipate multiple developers within the park.

A second party has surfaced as a potential purchaser of lands within the park.  In order to make the transaction possible the development agreement would need to be amended to specify the financial responsibilities of each party in the event that the incremental value of the TIF district is not sufficient to pay off the debt incurred by the District.

Fiscal Impact:  Properties within this TIF district would still be specially assessed to cover any shortfalls in the increment.   This agreement provides a formula for reallocating some of that responsibility to undeveloped lands within the district. 

Prepared by: Douglas W. Seymour, AICP Director of Community Development	Respectfully submitted, Robert L. Kufrin City Administrator
Fiscal Review by: Beverly A. Buretta, CMC City Clerk

File name: T:\Shared\Resolutions\10227 report (Supplemental Dev Agreement - DEMCO WI...).doc

Print Date:April 14, 2003

Revision No. 1