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Waukesha Council authorizes up to $1.035 million taxable note to finance developer incentive for Welddeck
Summary
The council approved parameters for a taxable general obligation promissory note not to exceed $1,035,000 to fund a previously executed developer incentive to Welddeck Inc.; staff said interest will be capped at 6% with principal deferred until 2028 and final payment in 2033. Vote was unanimous.
The Waukesha Common Council on a unanimous vote approved a resolution establishing parameters for issuing a taxable general obligation promissory note not to exceed $1,035,000 to finance a developer incentive previously paid to Welddeck Incorporated.
City staff said the payment to the developer was executed in January 2022 and the note is the financing mechanism to fund that payment. "This debt issue ... relates to the funding established for a developer incentive that is part of the existing TID district number 31, related to a redevelopment with the company Welddeck Incorporated," staff said during the presentation.
Brad Veil of Baird, the city's financial advisor, summarized the note's key parameters: the instrument is taxable because it finances a TIF developer incentive; the parameters set a maximum interest rate of 6% and the presentation estimated a likely rate around 5.15% but cautioned rates moved after a recent election. "I would expect the rate to come in a little higher than 5.15%, but I do expect the rate to be below 6%," Veil said.
Under the proposed schedule, principal payments are deferred until 2028 with the final payment due in 2033. Staff explained deferral is intended to allow the TIF district to generate increment revenue to support payments.
Alderman Piper moved the resolution; the motion was seconded and the council approved the parameters unanimously.
Next steps: with the council's approval of parameters the notes may be issued outside a council meeting once the stated parameters are met, subject to the technical limitations specified in the resolution.
