Fiscal Note
The proposed resolution authorizes a project plan amendment to TID 51 - South Madison. The plan amendment reallocates $25.0 million to assist housing development in the S Park St corridor from other projects within the project plan. Reallocations in the plan include: $9.0 million from the South Madison Transfer Point project; $6.0 million from the Village on Park Improvements project; $5.0 million from rental development loans; and, $5.0 million from loans for affordable owner-occupied units.
CDA Redevelopment's existing capital budget authority includes $15.0 million in TID 51 increment funding for the South Madison Redevelopment project (project #14431). In the project plan, this $15.0 million was reflected in the South Madison Transfer Point and Village on Park Improvements project lines. The Community Development Division's (CDD) existing capital budget authority includes $8.0 million in TID 51 increment funding for Affordable Housing - Development Projects (program #17110); the agency's 2027 request includes an additional $2.5 million in TID 51 increment funding for the same program. In the project plan, this $10.5 million was reflected in the financial assistance to rental development and Parker Place Apt loan project lines. Of this $10.5 million for Affordable Housing - Development Projects, $5.0 million will fund the South Madison Redevelopment project. The $5.0 million being reallocated in the project plan amendment from loans for affordable owner-occupied units has not been authorized in previous capital budgets and will need to be authorized in the Capital Budget by Common Council in the future.
No additional City appropriation is required with adoption of this project plan amendment at this time.
Title
Approving the Amendment to the Project Plan for Tax Incremental District (TID) #51 (South Madison), City of Madison. (District 14)
Body
WHEREAS Chapter 105 of the Laws of 1975 of the State of Wisconsin created the Tax Increment Law (the “TIF Law”), Section 66.1105, Wisconsin Statutes; and
WHEREAS TIF Law sets forth certain steps which must be followed to amend a Tax Incremental Project Plan; and
WHEREAS a Notice of Public Hearing by the Plan Commission to afford interested parties an opportunity to express their views on the amendment to the TID Project Plan for TID 51 was published in the Wisconsin State Journal on May 29 and June 5, 2026 as required by TIF Law; and
WHEREAS prior to publication of the Notice of Public Hearing a copy of the Notice was sent by first-class mail to each of the chief executive officers or administrators of all local governmental entities having the power to levy taxes on property within the boundary of TID 51; and
WHEREAS the Plan Commission of the City of Madison held a public hearing on June 15, 2026, at which interested parties were afforded an opportunity to express their views on the proposed amendment to the Project Plan for TID 51; and
WHEREAS the Plan Commission has made the following findings as indicated in the attached report:
1. No less than 50%, by area, of the real property within the TID is blighted within the meaning of 66.1105(2), Wisconsin Statutes.
2. The improvement of such area is likely to significantly enhance the value of a substantial portion of the other real property in the TID.
3. The aggregate value of equalized taxable property of the TID, plus all existing TIDs, does not exceed 12% of the total value of equalized taxable property within the City.
WHEREAS the Plan Commission has determined that the TID meets the basic requirements of City TIF Policy for tax incremental district proposals adopted by the Common Council on April 17, 2001, amended on March 31, 2009, and amended again on February 25, 2014 (insofar as they are applicable to the amendment of a project plan), conforms to the Comprehensive Plan for the City of Madison and is consistent with the review criteria adopted at the same time, specifically, that the TID supports economic development activities intended to stabilize and diversify the City’s economic base.
NOW THEREFORE BE IT RESOLVED that the Common Council of the City of Madison hereby confirms and adopts the above recitals and finds that:
1. No less than 50%, by area, of the real property within the TID boundary is blighted within the meaning of Section 66.1105(2), Wisconsin Statutes.
2. The improvement of such area is likely to significantly enhance the value of a substantially all of the other real property in the TID.
3. The aggregate value of equalized taxable property of the TID, plus all existing TIDs, does not exceed 12% of the total value of equalized taxable property within the City.
4. The project costs relate directly to eliminating blight.
5. TID 51 (South Madison) is hereby declared a blighted area district.
6. The percentage of territory devoted to retail businesses within TID 51 (South Madison) at the end of the TID’s expenditure period is estimated to be under thirty-five (35%) percent.
7. The boundaries of TID 51 (South Madison) are not changing.
BE IT STILL FURTHER RESOLVED that the attached amended Project Plan for TID 51 (South Madison), City of Madison, is hereby adopted as of January 1, 2026 as the Project Plan for said District and such plan is feasible and in conformity with the Comprehensive Plan for the City of Madison and will add to the sound growth of the City.