Fiscal Note
Funding of $1,100,000 for acquisition, relocation, closing and demolition costs are authorized in the 2008 PCED Adopted Capital Budget, project #29, "Villager Redevelopment," Account No. 810578.
Title
Authorizing a grant to the Community Development Authority for the acquisition of the Citgo Gas Station located at 2200 S. Park Street.
Body
PREAMBLE
As part of a broad community effort to stabilize and revitalize the South Park Street Corridor, the City and the Community Development authority (CDA) created a Redevelopment Plan, the Villager Redevelopment District that was adopted by the Common Council on March 30, 2004, through Substitute Resolution 61396. The intent of the Redevelopment Plan was to advance an overall redevelopment strategy for the Villager Shopping Center that would build upon the community-serving strengths of the Center. By adopting the plan, it made it possible for the CDA to use its statutory powers to acquire, stabilize, and revitalize the center and make it one of the primary community focal points in South Madison. In December of 2004, the Community Development Authority completed the acquisition of The Villager Mall and has considered in its overall development plan adopted by the CDA in December 2005 and the City in 2006 (Resolution RES-06-0011, Legislative File ID No. 02353, adopted February 7, 2006), the acquisition of two gas stations located on the north and south corners of The Villager. The intent is to acquire the CitgoGas Station located at 2200 S. Park Street in February of 2008 and the Mobil Station located at 2342 S. Park Street later in the year.
Recently soil borings were performed on property owned by the City of Madison and the CDA at locations surrounding 2200 S. Park Street. There were neither gasoline organics nor petroleum constituents detected in any of the samples. These results provide some assurance that potential petroleum leaks have not migrated to adjacent properties. If significant soil contamination is encountered during removal of the underground gasoline storage tanks CDA may consider applying for grant funds made available in the Wisconsin Department of Natural Resources Ready for Reuse program. The program requires a minimum of 22% matching funds.
NOW, THEREFORE, BE IT RESOLVED, that the City of Madison approves and authorizes a grant to the Community Development Authority for $ 1,100,000 to acquire, remove underground storage tanks and demolish the Citgo Gas Station located at 2200 S. Park Street.
BE IT STILL FURTHER RESOLVED, that the terms of the CDA's purchase agreement to acquire 2200 S. Park Street, Madison, Wisconsin (the "Property"), are as follows:
1. The total purchase price of the Owner's interest in the Property shall be $ 876,000.00 payable in cash at closing, subject to the adjustments and prorations provided in the Offer.
2. As provided in Wisconsin Statutes 32.19, the Owner is eligible to receive relocation payments up to an amount of $ 70,000.
3. The Owner retains salvage rights to equipment and other improvements associated with the existing facility.
4. The Owner makes no warranties or representations with regard to the environmental condition of the Property.
5. Real estate taxes payable on the Property shall be prorated at time of closing.
BE IT STILL FURTHER RESOLVED that proceeds resulting from the future sale of property by the CDA shall be returned to the City of Madison's general fund.
BE IT STILL FURTHER RESOLVED that the Mayor and Clerk of the City of Madison are hereby authorized to execute, deliver and record such documents and to take such other actions as shall be necessary or desirable to accomplish the purposes of this Resolution.
BE IT STILL FURTHER RESOLVED that the comptroller is authorized to internally borrow to finance these project costs.