Fiscal Note
The proposed resolution authorizes $500,000 in Building Improvement Grants (BIG) to tenants of the Madison Public Market for improvements to their spaces. Funding is available from the Dane County contribution to the Madison Public Market (project #10069) due to construction costs coming in lower than estimated. Grants to individual tenants will be capped at $50,000 to ensure that at least ten tenants will have access to the funds. No additional City appropriation is required.
Title
Authorizing the City of Madison’s Economic Development Division to award up to $500,000 of Building Improvement Grants to Madison Public Market merchants, using funding available within the existing Madison Public Market budget. (District 12)
Body
WHEREAS, the Madison Public Market, located at 202 N. First Street (53704), is nearing conclusion of the City portion of the construction project; and
WHEREAS, the City’s portion of the construction project will generally leave merchant spaces as empty “white boxes” with unfinished walls and no fixtures or cabinetry, requiring the Madison Public Market Foundation and individual merchants to finish construction; and
WHEREAS, the original Madison Public Market budget established tenant improvement allowance funding of $971,000 for the Madison Public Market Foundation to assist merchants with construction work necessary to convert “white box” spaces into completed merchant spaces, especially for merchants who were under-capitalized, in alignment with the goals of the Madison Public Market Foundation; and
WHEREAS, a $971,000 tenant improvement allowance to complete this work is consistent with industry norms for a facility of this size; and
WHEREAS, the original tenant improvement allowance budget was reduced to $500,000 to accommodate higher than expected construction estimates at the time the Common Council approved the City’s portion of the construction project, reducing the capacity of the Madison Public Market Foundation to assist merchants with the build-out of their spaces; and
WHEREAS, the City of Madison created the Building Improvement Grant (BIG) Program via RES-22-00497 to assist small, independent businesses with the capital costs associated with renovating or building-out the interior and exterior of commercial spaces, by providing up to $50,000 per business; and
WHEREAS, the City’s portion of the Madison Public Market construction project is near conclusion with enough unneeded budget remaining to fund $500,000 of Building Improvement Grants for merchants to compete tenant improvements to their spaces; and
WHEREAS, investing $500,000 in Madison Public Market merchants through the Building Improvement Grant program will provide merchants with tenant improvement funding more consistent with industry norms, which will be especially beneficial to the emerging entrepreneurs that have a greater likelihood of being undercapitalized; and
WHEREAS, with a cap of $50,000 per business, a City investment of $500,000 in the Building Improvement Grant Program for the Madison Public Market will ensure that at least ten merchants have access to these resources to help transform their “white box” space into a new location for their business.
NOW, THEREFORE, BE IT RESOLVED that the City of Madison’s Economic Development Division is authorized to award up to $500,000 of Building Improvement Grants to Madison Public Market merchants, using funding available within the existing Madison Public Market budget; and
BE IT FURTHER RESOLVED that the existing Building Improvement Grant program guidelines and application process will be generally followed, except for the collaboration with the Madison Public Market Foundation noted below; and
BE IT FURTHER RESOLVED that the City of Madison Economic Development Division will closely collaborate with the Madison Public Market Foundation to direct Building Improvement Grants only to Madison Public Market merchants that can demonstrate a financial need that can’t be filled by other means.
BE IT FINALLY RESOLVED that the Common Council authorizes the City’s Economic Development Division staff, Mayor, and/or City Clerk to take any further action and execute any documents required to accomplish the intent of this resolution in a form approved by the City Attorney.