Fiscal Note
The Purchase and Sale Agreement required the City to establish an environmental escrow account to be used by the developer to pay for environmental remediation and asbestos abatement. This Amendment increases the escrow account from $100,000 to $200,000, thereby increasing the estimated cost of the total project from $13.8 million to $13.9 million (see RES-12-00873 for details on the initial estimated cost). This amount would be offset on a prorated basis by any applicable grants received by the developer.
Title
Authorizing the execution of a First Amendment to the Purchase and Sale Agreement executed between the City and Hovde Properties, LLC.
Body
The City of Madison executed a Purchase and Sale (the “PSA”) with Hovde Properties LLC (the “Developer”), dated December 10, 2012, that provided that the Developer will acquire from the City the Madison Fire Department Administration Building located in the 300 Block of West Johnson Street for assemblage into the Developer’s mixed-use development condominium project (the “Project”) located at 305-309 West Johnson Street. The Madison Fire Administration Building (the “Building’) will be demolished by the Developer. The City will purchase a “grey box” condominium unit (the “Fire Admin Condo Unit”) and parking stalls within the Project for the purpose of providing administrative office and storage space for the Madison Fire Department. The City shall be responsible for the build out of the Fire Admin Condo Unit. The Madison Fire Department’s administration offices will relocate to leased space until the Fire Admin Condo Unit is built out.
Subsequent to the execution of the PSA, certain conditions and dates have changed that necessitate an amendment to the PSA (the “First Amendment”). Section 2.b of the PSA currently provides that $100,000 of the proceeds of sale received by the City for the sale of the Building be placed in an Environmental Escrow Account to be used for the Developer for asbesto...
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