2011, you can have it all (but good luck! it’s getting pretty late). 2012, TIF is reduced.
Dear Mr. Dunn
I read with interest the report in the Wisconsin state Journal indicating you have secured financing for the Edgewater Hotel project. As you know, while I will support a reduced TIF funding for the year 2012, I am prepared to execute a TIF loan agreement in 2011.
Execution of this agreement, of course, is predicated upon meeting all of the necessary approvals and requirements of the TIF authorizing resolution and the May 25, 2010 PUD/conditional use approval letter.
While the following list is not complete, we must address the following items:
– Documentation of required private funding including the commitments from your lenders and proof of the source of and availability of the equity,
– Negotiation of the TIF agreement; and
– negotiation of a disbursement agreement including engaging a supervising architect.Much of this work could have been completed in the past six months had financing commitments been secured. I mention this because despite our best efforts, the short period of time between now and the end of the year may not be sufficient to complete the tasks necessary to negotiate the TIF agreement.
In addition, fulfillment of the TIF loan agreement for the project will require issuance of general obligation debt, which is contingent on approval of an authorizing resolution by the Common Council.
Finally, as you are aware, the City will engage in appropriate due diligence to ensure the effective use of taxpayer resources including comprehensive review of actual construction costs and reduction of the TIF amount in the event that actual costs or the financial gap are less than estimated.
Sincerely
Paul R. Soglin
Mayor
