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Discussion regarding negotiations to amend the Tax Increment Financing Development Agreement with the Mayfair Holdings Hotel LLC, dba Renaissance Milwaukee West Hotel
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Submitted by:
John Ruggini, Finance Director
Mark Hammond, Development Director
Department:
Finance Department
Development Department
A. Issue
The City entered into a Development Agreement with the Mayfair Hotel to provide tax increment financing for the Renaissance Hotel at 2300 North Mayfair Road in 2018. The Developer has requested several potential changes to that agreement. Staff will update the Financial Affairs Committee in closed session on the specifics and status of the negotiations around these changes.
B. Background/Options
As part of the 2018 Development Agreement, the City issued a $13,843,674 Municipal Revenue Obligation in order to reimburse the developer over time for the extra-ordinary costs necessary to develop the hotel. To date, the balance remaining is $11,618,306.
In 2020, in response to the pandemic’s impact on the Renaissance due to the timing of when the hotel opened, the City provided a $300,000 forgivable loan. The forgiveness terms have been met so no balance is due the City.
Details related to the requested changes to development agreement, status of the negotiations and recommended actions will be discussed in closed session.
C. Strategic Plan (Area of Focus)
Economic and Financial Resilience
D. Fiscal Impact
To be discussed in closed session
E. Recommendation
To be discussed in closed session
recommendation
The Committee may convene into closed session regarding this item pursuant to Wis. Stat. §19.85 (1)(e), to deliberate or negotiate the purchasing of public properties, the investing of public funds, or conducting other specified public business, whenever competitive or bargaining reasons require a closed session. The Committee may reconvene into open session to consider the balance of the agenda.