Tom Daykin

Milwaukee Journal Sentinel

A city-owned parking structure that will be demolished as part of the Milwaukee Bucks arena project would be given to the basketball club earlier than planned under a new proposal.

The Common Council and Mayor Tom Barrett last year agreed to give the parking structure to the Bucks as part of the city's $47 million financing agreement for the $524 million arena project.

The basketball club will demolish the 1,000-space parking structure, which is east of N. 4th St., between W. Highland and W. Juneau avenues, and replace it with a privately financed entertainment center, known as the Live Block.

Under the original agreement, the city must give the parking structure to Deer District LLC, a Bucks-affiliated investors group, by Dec. 31. Deer District must begin demolishing the parking structure within 60 days of taking ownership of the property.

Under a new proposal, Deer District would take control of the property in October so it can immediately begin demolition.

That would help the Bucks complete the Live Block by the time the new arena opens, according to the new council resolution. Construction of the arena started this summer, with the facility to open by the fall start of the 2018-19 National Basketball Association season.

That change also would allow the Bucks to take control of the parking structure before the council approves detailed plans for the Live Block, said Mary Schanning, an assistant city attorney.

The development agreement between the city and Deer District currently requires the city to delay giving the parking structure to the Bucks until after that approval occurs. Those detailed plans haven't yet been submitted to city officials, with the Common Council review not expected to occur until December or January, Schanning said.

However, Deer District must submit its Live Block plans to the Department of City Development before the parking structure's control is transferred, according to the proposal.

The Live Block will feature restaurants and taverns.

The Highland Ave. parking structure will be replaced by a new 1,243-space parking structure, which is being built east of N. 6th St. and north of W. Juneau Ave. It will be connected to the arena by a skywalk across Juneau Ave.

The new structure will be owned by the city, with the Bucks and city splitting its revenue.

The proposal says the Bucks will pay the city $58,805 for each month from the day the city gives the Highland Ave. parking structure to the basketball club until the new parking structure opens.

That's to compensate the city for a loss of parking revenue during that period. Those payments will be offset if the city's parking structures at MacArthur Square and 1000 N. Water St. see an increase in their revenue after the Highland Ave. structure closes.

If approved by the council, the Highland Ave. parking structure would be given to Deer District "as soon as practical" after Oct. 3, according to the proposal.

Deer District must offer "reasonably adequate replacement parking" for tenants with existing leases before the property is transferred, the proposal said. Those tenants are the Journal Sentinel, Aloft Hotel, The Moderne apartment and condo high-rise and RFP Office.