Fiscal Note
The proposed resolution amends the Economic Development Division's (EDD) 2026 Adopted Capital Budget by $4.165 million in the Land Banking program (#12640) to fund the acquisition of 4 properties within TID 55 (Voit Farm). The funding will be in the form of TID-supported GO Borrowing. The resolution furthers authorizes the execution of a purchase and sale agreement between the City and Starkweather, LLC for the 4 aforementioned properties.
The estimated acquisition, holding, environmental testing, and pre-development costs for the property are estimated at $4.3 million: $4.165 million for acquisition and $135,000 for environmental site assessment, title work, miscellaneous closing costs, property holding costs, and pre-development costs. The amendment to the 2026 Capital Budget is needed to fund the acquisition costs. The $135,000 needed for holding, pre-development, and other related costs is available within the 2026 Adopted Capital Budget: $50,000 of TID-supported GO Borrowing in the TID 55 program (#99017) and $85,000 of General Fund-supported GO Borrowing in the Land Banking program (#12640).
Acquisition costs related to these 4 properties are included in the adopted TID 55 Project Plan adopted by Council via RES-25-00413 in July 2025.
Title
Amending the 2026 Economic Development Division Capital Budget by $4,165,000 and authorizing the execution of a Purchase and Sale Agreement with Starkweather, LLC, or their successors and assigns, for the purchase of four (4) properties addressed as 111 North Walter Street, 31 North Walter Street, 3472 Chicago Ave, and 3470 Canvas Road, Madison, WI 53703 for land banking purposes, and authorizing the expenditure of $135,000 of in the 2026 adopted EDD Capital Budget for environmental assessment, title work, closing costs, holding costs, and predevelopment costs totaling $4,300,000 (District 15).
Body
WHEREAS, Starkweather, LLC (the “Seller”) is the owner of properties located at 4111 North Walter Street, 31 North Walter Street, 3472 Chicago Ave, and 3470 Canvas Road, Madison, WI 53703 containing 1491,10 square feet or 3.4 acres of land, as legally described in Exhibit A of the Purchase and Sale Agreement attached hereto (the “Agreement”) and depicted on Exhibit B to the Agreement (the “Property”); and
WHEREAS, the City of Madison (the “City”) desires to purchase the Property for land banking purposes; and
WHEREAS, the City’s acquisition of the Property would provide expanded opportunities for the City to guide future housing and commercial development; and
WHEREAS, the Seller agrees to sell the Property to the City in accordance with the terms of the Agreement, which has been executed by the Seller, for a purchase price of $4,165,000, which was negotiated based on an appraisal approved by the City’s Office of Real Estate Services; and
WHEREAS, additional acquisition costs, including an environmental site assessment, title work, holding costs and predevelopment costs, and miscellaneous closing costs are estimated to total $135,000; and
NOW, THEREFORE, BE IT RESOLVED that the City’s Common Council hereby authorizes the City’s execution of the Agreement, as Buyer, for the purchase of the Property on substantially the same terms and conditions contained in the Agreement attached hereto; and
BE IT FURTHER RESOLVED that the 2026 Economic Development Division Capital Budget is hereby amended to authorize a total expenditure of $4,300,000 related to the City’s acquisition of the Property, with $4,165,000 of new GO Borrowing backed by TID 55 to fund the acquisition of the Property, and an additional $135,000 of funding from the adopted 2026 EDD Capital Budget with $85,000 from the adopted 2026 EDD Capital Budget from the Land Banking fund and $50,000 from TID 55 to be used for the following: due diligence including environmental site assessment and closing expenses including title work to accomplish the purchase of the Property, holding costs, and pre-development costs; and
BE IT FINALLY RESOLVED that the Mayor and City Clerk are authorized to sign, accept, and record the Agreement any and all documents and legal instruments required to complete the transactions contemplated in this resolution, on a form and in a manner that has been approved by the City Attorney.