Fiscal Note
No city appropriation required.
Title
Authorizing the terms of a land use restriction agreement regarding the redevelopment of the Saxony Apartments located at 305 N Frances Street by Core Madison Frances, LLC.
Body
WHEREAS, as a university city, the City of Madison has a need for affordable student housing.
WHEREAS, Section 28.071(2)(a)2.c. of the Madison General Ordinances (the "Ordinance") allows for buildings within the Downtown Height Map to exceed the maximum number of stories if a development includes affordable units rented to students enrolled at postsecondary educational institutions.
WHEREAS, the Ordinance requires that a property owner utilizing the story-bonus contemplated by the Ordinance voluntarily execute a land use restrictions agreement (LURA) for the benefit of the City guaranteeing that the property owner will provide the below market rate affordable units to students from households with low or moderate incomes for a specified period of time.
WHEREAS, Core Madison Frances, LLC, or its assigns (the "Developer") intends to construct a project located at 305 N Frances Street as reflected in the land use application contained in Legistar File 89452 (the “Project”), which would utilize the story bonus and require execution of a LURA establishing affordability requirements as contemplated by the Ordinance.
WHEREAS, the terms of the LURA attached as Exhibit A requires 10% of the Project’s beds receiving a 40% reduction in rent, specifically applying to double-occupancy two-bedroom units, which is the affordability criteria the City and the Developer negotiated and agreed upon on two other projects, the Oliv and Johnson & Broom.
WHEREAS, Legistar File Number 89933, currently pending with Council and scheduled for consideration on October 7, 2025, would authorize the City to execute a memorandum of understanding ("MOU") with the University of Wisconsin Board of Regents regarding the referral of eligible students to the affordable units, as contemplated by the Ordinance.
WHEREAS, the terms of the LURA attached as Exhibit A, requires the Developer to abide by the terms of the MOU, and the LURA would serve as both the LURA and contractual agreement contemplated by the Ordinance.
NOW, THEREFORE, BE IT RESOLVED that the City’s Common Council hereby authorizes the Mayor and Clerk to execute a LURA with the Developer on substantially the same terms as reflected in the attached Exhibit A in a form to be approved by the City Attorney's Office.