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Committee approves up to $1 million short-term allocation to CDA to remove structures at 1405 S. 90th St.
Summary
The committee approved a resolution to allocate up to $1,000,000 to the Community Development Authority to raze and remove structures at 1405 South 90 Second Street, structured as a short-term loan to be repaid by the developer when financing is secured.
The City of West Allis Economic and Development Committee approved a resolution authorizing the city to allocate up to $1,000,000 to the Community Development Authority (CDA) to raise and remove structures at 1405 South 90 Second Street under an agreement with F Street 90 Second LLC.
Committee members explained the allocation is intended as a short-term loan from the city to the CDA to cover demolition so the developer can proceed; the CDA will be repaid when the developer secures project financing. One committee member said the project has been stalled for three years and that the short-term financing will prevent a potentially year-long delay in demolition that could otherwise occur while the developer lines up full financing. The committee noted that the CDA would charge interest above the standard rate — described in the transcript as “interest plus 1%” — and that the developer would repay the loan when financing closes.
A motion to allocate up to $1,000,000 was made, seconded and approved by voice vote in committee. Committee members framed the allocation as a tool to keep the project moving; the transcript does not record covenants, security terms, or precise repayment schedule beyond the statement that the CDA will be repaid once the developer secures financing and that interest will be charged.
