Fiscal Note
The settlement price to the City is $1.00, and the City will pay a portion of closing and title costs, as detailed in the Purchase and Sale Agreement. Funds for these costs will be paid from the 2023 General Land Acquisition Fund (Munis project # 14198). No additional City appropriation is required.
Title
Authorizing the execution of a Purchase and Sale Agreement between the City of Madison and Kaba-Baal LLC, for the City’s disposal of one vacant residential lot located in the Owl’s Creek Subdivision. (16th AD)
Body
WHEREAS, in 2014 the City of Madison (“City”) purchased one outlot and 50 vacant residential lots within the Owl’s Creek Subdivision (“Owl Creek Lots”) on Madison’s south-east side, in the general area depicted on the attached Locator Map, for the settlement amount of $510,000, as authorized by File ID No. 34538, Resolution Enactment No. RES-14-00574, adopted by City Common Council on August 5, 2014 (“Authorizing Resolution”); and
WHEREAS, per the Authorizing Resolution, rationale for the City’s purchase of the Owl Creek Lots included mitigating challenges in the neighborhood and providing the City with “the opportunity to have a significant impact on the timing and quality of the development in the Owl Creek neighborhood”; and
WHEREAS, on November 11, 2017, Common Council accepted a Report, File ID No. 48236, containing the Owl Creek Assessment and Strategic Plan (“Plan”) along with the Racial Equity and Social Justice Initiative assessment of the Plan; and
WHEREAS, following guidance in the Plan to complete the build out of the neighborhood, in 2020 Economic Development Division staff completed a Request for Proposals process, City RFP #8966-0-2020-BG, which has resulted in the City selling 18 Owl Creek Lots to three smaller-scale developers who have constructed and are in the process of constructing single-family homes on the lots; and
WHEREAS, to continue guiding the development of the Owl Creek neighborhood, pursuant to File ID No. 74456, Resolution Enactment No. RES-22-00824, adopted by City Common Council on December 6, 2022, City Common Council voted to authorize the sale of one Owl Creek Lot, located at 5165 Great Gray Drive (“Property”), for $1.00 to Kaba-Baal LLC (“Buyer”) to support the development of affordable owner-occupied homes to be sold to income-qualified homebuyers; and
WHEREAS, City Office of Real Estate Services and Community Development Division staff have drafted, and the Buyer has executed, the Purchase and Sale Agreement (“Agreement”) attached hereto as Exhibit - Agreement, to formalize the terms and conditions of the sale of the Property, as legally described in the Agreement, to the Buyer.
NOW, THEREFORE, BE IT RESOLVED that the City’s Common Council hereby authorizes the City’s execution of the Agreement subject to materially, though not exclusively, the terms and conditions found in the Agreement.
BE IT FINALLY RESOLVED that the Mayor and City Clerk are authorized to sign, accept, and record any and all documents and legal instruments required to complete the transaction contemplated in this resolution, on a form and in a manner that has been approved by the City Attorney.