City of Oak Creek

Common Council Report

Meeting Date:  October 16, 2007

Item No.: 

Recommendation:  That the Council adopt Resolution No. 10797-101607, a resolution authorizing the issuance of a $900,000 taxable tax increment revenue bond of the City of Oak Creek, Wisconsin to 2201 West Southbranch, LLC, and approving a tax increment development agreement.

Background 2201 West Southbranch, LLC  (Joseph Campione Enterprises) is proposing to construct a 102,016 square foot addition to their existing facility (which is 87,500 square feet).  The addition will be onto the southern end of their existing facility.  Joseph Campione Enterprises has an accepted offer to purchase for the additional land to accommodate this expansion.  The additional property is being acquired from the City of Oak Creek.

The new addition will allow for additional production lines, ovens, storage, refrigeration, and an office/lobby addition.   There will also be an 8-bay loading dock, tucked into the southeast corner of the building.  In terms of architecture, the entire west elevation of the new addition as well as the two-story office portion of the south elevation will be brick and glass.

On July 17th of this year, the Council authorized staff to return to the Council with a development agreement between the City and 2201 West Southbranch, LLC for the development of the property as part of Tax Incremental District (TIF) No. 7 and providing a $900,000 subsidy. 

This evening, the Council will consider a resolution authorizing the issuance of a $900,000 taxable tax increment revenue bond and tax incremental district development agreement that was negotiated with 2201 West Southbranch, LLC under the guidance provided by the Council at that meeting.

Please note that while the resolution was prepared authorizing the issuance of the bond, it also approves the TID agreement by reference.

An executive summary of that financial agreement is included as part of this Council report.  Please note that this agreement is a draft.  Final copies will be provided to the Council prior to Tuesday’s meeting.

Fiscal Impact:  The development agreement sets forth the terms under which 2201 West Southbranch, LLC will be reimbursed through the tax increment they generate as part of this development.  Under the agreed upon formula and estimates, the City would be receiving nearly two million dollars for use in other eligible District projects over the life of the district.

Prepared by: Doug Seymour, AICP Director of Community Development

Respectfully submitted, Patrick DeGrave City Administrator

Fiscal Review by:

Beverly A. Buretta, CMC

City Clerk