Fiscal Note
Fiscal note pending.
Title
Authorizing the City of Madison to enter into a Purchase of Services contract with TerraVenture Advisors, LLC to provide relocation assistance and services to the tenants occupying the buildings located on the City-owned property at 1812 - 1820 S. Park Street; authorizing the payment of eligible relocation benefits; and authorizing lease negotiations with the current tenants in the interim totaling $546,650, with funding previously authorized 2026 EDD Capital Budget and in the adopted TID 51 project plan. (District 14)
Body
WHEREAS, the City of Madison (the “City”) acquired the property located at 1812 - 1820 S. Park Street (the “Property”) for landbanking purposes, as authorized by City Resolution File ID #86853, Enactment No. RES-25-00097, adopted on February 14, 2025; and
WHEREAS, the Property is one tax parcel totaling 1.26 acres of land improved with a building used for warehouse, storage, commercial office, and retail space, occupied by three commercial retail tenants with yearly leases (the “Commercial Tenants”); and
WHEREAS, when the City acquires property, in some circumstances Wisconsin law (Wis. Stat. Ch. 32 and Wis. Admin. Code Ch. Adm 92) or the federal Uninform Relocation Assistance and Real Property Acquisition Policies Act (“URA”) (42 U.S.C. §§ 4601-4655 and 49 C.F.R. Part 24) (the Wisconsin and federal law referred to collectively as “Relocation Law”) may require the City to pay relocation benefits to the owner or tenants of the acquired property. Complying with Relocation Law may require preparing an Acquisition Stage Relocation Plan (the “Plan”). If required the Plan must be prepared and subsequently approved by the State of Wisconsin Department of Administration. The Plan provides extensive fact specific details regarding relocation assistance and potential project management services for the project, including but not limited to the following: displacement numbers, project cost estimate, anticipated project schedule, appeals process, property management costs and needs, eviction policy, claims policy, relocation assistance services, tenant inventory, notification methods, payment summary for every eligible tenant, available comparable properties for tenants and anticipated relocation payments for each tenant. The Plan for the required tenant relocations at the Property was completed by TerraVenture Advisors, LLC. and approved by the Department of Administration on April 20, 2026; and
WHEREAS, the Commercial Tenants will receive a relocation benefits, consistent with and as required by Relocation Law, setting forth their eligibility for reimbursements, with all tenants eligible for moving costs, and certain others potentially eligible for additional business relocation benefits. Eligibility is determined by interviews and review of financial statements for the on-site businesses; and
WHEREAS, the estimated timeframe for relocation assistance and property management services is through June 2027; however, any displaced Commercial Tenants may be eligible for relocation payments and services for a period of up to two years after they vacate their respective units. As a result, the City may need to provide property management services through December 2027, but relocation services to the holdover tenants of the Property through June 2029; and
WHEREAS, the City’s Office of Real Estate Services does not have current staffing in place to perform and manage the required relocation assistance for the Commercial Tenants. Services of this complexity and time period require a consultant vendor that has thorough knowledge of Relocation Law, hired to become familiar with the Property, the existing tenants/leases, and the needs of the City; and
WHEREAS, the City has received a proposal from TerraVenture Advisors, LLC to provide the required relocation assistance services during the required timeframe; and
WHEREAS, TerraVenture Advisors, LLC, has extensive experience providing relocation services in the State of Wisconsin, is familiar with Relocation Law, and has performed recent work specific to the City’s landbanking acquisition efforts by virtue of the Plan that was approved by the State; and
WHEREAS, TerraVenture Advisors, LLC was the only firm to respond to the City’s Request for Proposals for relocation assistance services for the Property with a not to exceed cost of $46,650; and
WHEREAS, the estimated total cost for all relocation payments to all tenants on the Property, including the Commercial Tenants, is estimated to be $500,000.
BE IT FURTHER RESOLVED, that the Mayor and City Clerk are authorized to execute a contract for Purchase of Services not to exceed $46,650 with TerraVenture Advisors, LLC. for the above-described services; and
BE IT FURTHER RESOLVED, that the Common Council authorizes all relocation payments to all eligible tenants of the Property as set forth and required by Relocation Law; and
BE IT FURTHER RESOLVED, that the Common Council authorizes City Staff to negotiate and modify existing leases in the Property, including existing rental rates; and
BE IT FURTHER RESOLVED that the Mayor and City Clerk 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.