Fiscal Note
The proposed resolution authorizes the purchase of the property located at 3030 Darbo Dr. Acquisition costs are estimated at $3.0 million. Funding for the proposed acquisition and associated expenses are available in two capital programs. The Community Development Division's 2022 Adopted Capital Budget included $2.5 million of American Rescue Plan Act (ARPA) funds for the Salvation Army Darbo Site (Munis project 13775). The Economic Development Division's Land Banking capital program will fund the remaining $500,000 (Munis project 12640). The proposed resolution further authorizes the execution of a lease agreement for the property after closing of the sale to The Salvation Army for $1 a year through December 31, 2026 with two successive 1-year extension options. No additional City appropriation is required.
Title
Authorizing the City’s execution of a Purchase and Sale Agreement and Lease between the City of Madison and The Salvation Army or their successors and assigns, for the purchase of the property located at 3030 Darbo Drive in the City of Madison, and leaseback period subsequent to closing. (District 15)
Body
WHEREAS, The Salvation Army (“Seller”) is the owner of the property located at 3030 Darbo Drive which contains 2.57 acres of land and all improvements thereon (“Property”), legally described as follows:
LOT 2 OF CERTIFIED SURVEY MAP 7652, RECORDED NOVEMBER 15, 1994 IN VOLUME 40, PAGES 47-49 AS DOCUMENT NO. 2645258 AND BEING CORRECTED BY AFFIDAVIT RECORDED JUNE 10, 1996 IN VOLUME 33141, PAGE 73 AS DOCUMENT NO. 2799665, BEING LOCATED IN THE NORTHEAST ¼ AND NORTHWEST ¼ OF THE NORTHWEST ¼ OF SECTION 5, TOWNSHIP 7 NORTH, RANGE 10 EAST, CITY OF MADISON, DANE COUNTY, WISCONSIN, BEING OUTLOT A, LOTS 1-4 AND 9-19 EXCEPT THE NORTHERLY 5 FEET OF LOTS 16-19, ALL IN DARBO’S ADDITION.
EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED IN WARRANTY DEED RECORDED IN DOCUMENT NO. 4229987 AND FURTHER EXCEPTING THEREFROM THAT PORTION OF LAND CONVEYED IN INSTRUMENT RECORED IN DOCUMENT NO. 5424962.
WHEREAS, the City of Madison (“City”) desires to purchase the Property from the Seller to provide the Seller with funding to redevelop the Seller’s shelter for Women and Children on E. Washington Avenue, to landbank a property that is proximate to Bus Rapid Transit in order to support continued provision of essential community services and to provide the City with an additional site for creating the Darbo Dream; and
WHEREAS, the Mayor directed the City’s Office of Real Estate Services to pursue the purchase of one or more properties suitable for such use, and the terms of the Property’s purchase are being negotiated; and
WHEREAS, pursuant to that certain Lease being negotiated by the City and the Seller, the City agrees that the Seller may lease the Property from the City after closing, at no cost to the Seller, until such time as the Seller’s new facility is completed.
NOW, THEREFORE, BE IT RESOLVED that the City’s Common Council hereby authorizes the City’s execution of a Purchase and Sale Agreement, as Buyer, for the purchase of the Property with a purchase price of $3,000,000 subject to certain prorations and closing costs, and on substantially the same the terms and conditions contained in the Purchase and Sale Agreement attached hereto; and
BE IT FURTHER RESOLVED that the City’s Common Council hereby authorizes the City’s execution of a lease for $1 a year with the Seller for the continued use of the Property after closing on substantially the same the terms and conditions contained in the Lease attached hereto; and
BE IT FURTHER RESOLVED that City Staff are authorized to solicit and enter into contracts to pay for holding costs including, but not limited to, grass cutting, snow removal, and general maintenance, after the Seller’s lease has expired and the Property has been vacated; and
BE IT FINALLY RESOLVED that the Mayor and Clerk are hereby authorized to sign, accept, and record 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.