Fiscal Note
The proposed resolution authorizes an amendment to the contract with Foley & Lardner LLP for the provision of legal services regarding the Heartland Housing, Inc. property and loan transactions. The contract would be amended to include an additional $75,000, and the funds are available in the Affordable Housing Fund (12506230). No additional City appropriation required.
Title
Authorizing the City to amend its contract with outside counsel to provide legal representation for the Heartland Housing, Inc. property and loan transactions.
Body
WHEREAS, the City has provided loan funds to Heartland Housing Inc. for the benefit of Tree Lane Apartments, LLC and Rethke Washington LLC, with respect to affordable housing projects located at 7933 Tree Lane and 715 Rethke Avenue (the “Properties”); and
WHEREAS, in the spring of 2023, Heartland Housing Inc. notified the City it was on the brink of insolvency and intended to relinquish its control of the Properties, as well as other properties it operated in Milwaukee and Chicago; and
WHEREAS, in June of 2023 the Properties were placed under the control of a receiver in Dane County Case No. 23CV1379; and
WHEREAS, Attorneys Katherine Rist and Matthew Lee of Foley & Lardner LLP have the required specialized knowledge and expertise necessary to navigate the highly complex scenario of two low income housing tax credit projects going through receivership, possible sale, and negotiation of terms and legal documents with a potential buyer; and
WHEREAS, under MGO Sec. 4.26(4)(a)3., the City may retain services of an attorney without competitive bids; and
WHEREAS, the City has an existing purchase of services contract with Foley & Lardner LLP to provide legal services for this project up to an amount of $49,999, and the duration and complexities of the project and representation require additional legal services.
NOW, THEREFORE, BE IT RESOLVED that the Mayor and the City Clerk are authorized to execute an amend...
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