Fiscal Note
The City’s total costs for acquiring the Property are an estimated $3,496,925 (including purchase price of $3,300,000 ($6.64 per sq ft) and $196,925 for prorated taxes and miscellaneous acquisition (appraisal, environmental assessment) and closing costs. The City holding costs on the Property are approximately $131,443. The City is selling the Property for $6,000,000 ($12.07 per sq ft). The Property is within Tax Incremental Financing District No. 37 Union Corners and the costs to acquire the Property were charged to the TID. Sales proceeds will be credited to the TID.
An amendment to the 2013 PCED adopted capital budget (Project No. 16, “TID 37 - Union Corners,” Account No. 823701) is required to recognize both the sales proceeds revenues of $6,000,000 and the expenditure of $6,000,000 for the developer loan, as follows:
$6,000,000 CT37-78320-823701 Land Proceeds
$6,000,000 CT37-57750-823701 Loan to Developer
Title
SUBSTITUTE Accepting a Selection Committee’s recommendation of the Gorman & Company, Inc. proposal for the purchase and redevelopment of City-owned properties located at 2504, 2507 and 2340 East Washington Avenue (Union Corners) and authorizing the execution of a Purchase and Sale Agreement with Gorman & Company, Inc. for the purchase and redevelopment of these properties and amending the 2013 PCED adopted capital budget to recognize as TID 37 financial activity $6,000,000 in both sales proceeds revenues and financial assistance expenditures (a TID loan).
Body
The City of Madison established a Land Banking Fund to purchase and stabilize developable parcels of land in the City of Madison. The City’s Economic Development Committee approved guidelines for the purchase and sale of land acquired with Land Banking Funds (attached). In December 2010 the City used the Land Banking Fund to purchase properties located at 2504, 2507 and 2340 Winnebago Street (Union Corners) (collectively, the “Property”), as shown on the attached ...
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