Fiscal Note
The proposed Memorandum of Understanding (MOU) is one of three authorizing proposals that comprise the City's planned development of the Cherokee area. In addition to the MOU, the City has developed a Cherokee Special Area Plan and an Annexation Agreement between Cherokee Park Development, Inc. ("Cherokee") and the City, each of which is offered under separate authorizing Resolutions requiring Council approval.
The MOU is a statement of intent that provides for the City acquisition of open space protection through the purchase of up to 39 upland acres and 239 wetland acres. The acquisitions are expected to occur in phases over the next five years and will include a mix of fee simple acquisition and purchase of open space easements. Estimated total costs range from $3.37 million - $4.52 million, depending on appraised valuations. Grants will be sought to support up to 75% of the acquisition cost (requesting 50% from DNR Stewardship Fund and 25% from Dane County Conservation Fund). Alternatively, other puchasing mechanisms may be used to spread the acquisition costs to different supporters (direct DNR acquisitions, nonprofit partnerships, etc.). Each acquisition will require a separate resolution and fiscal note. Current balance in the City's fee in lieu of dedication fund (si32) is approximately $1.8 million.
Title
SUBSTITUTE - Authorizing the Mayor and Clerk to sign a Memorandum of Understanding with Cherokee Park, Inc. ("Cherokee") providing for the purchase of lands owned by Cherokee and the purchase of conservation easements over other lands owned by Cherokee.
Body
WHEREAS, the City wishes to purchase, in fee simple, certain lands owned by Cherokee and wishes to purchase conservation easements over additional lands owned by Cherokee; and
WHEREAS, in recognition of the unique environmental characteristics of the Cherokee lands, the City has been working, and plans to continue working with Dane County, the State of Wisconsin, and the Department of Natural Resources to acquire sufficient funds to assist in the acquisition of the above land interests; and
WHEREAS, the City and Cherokee wish to recognize the existing stage of their agreement.
NOW, THEREFORE, BE IT RESOLVED, the City and Cherokee shall enter into this Memorandum of Understanding regarding the acquisition by the City of Cherokee land interests with the following provisions;
1. In the Fifth Addition, as shown on Exhibit A, the City will purchase, in fee simple, approximately twenty (20) acres of developable land for not less than $85,000 per acre or more than $100,000 per acre and approximately four (4) acres of wetland for $5,000 per acre, depending on the appraised value.
2. Appraisals for the above lands shall include instructions that the lands are within the Central Urban Service Area, and the Madison Metropolitan Sewerage District; are noted as suitable for residential development in the City's Comprehensive Plan; and are subject to an Annexation / Attachment Agreement with the City.
3. On the remaining lands in the Fifth Addition owned by Cherokee, the City shall support residential development at a net density of five (5) to seven (7) dwelling units per acre. Final development of these lands shall be subject to the City of Madison Subdivision Ordinances, Zoning Ordinances, and be consistent with the adopted Cherokee Special Area Plan.
4. The City will purchase from Cherokee a conservation easement on approximately fourteen (14) to twenty-one (21) acres on the High Hill, as shown on Exhibit B. The conservation easement shall provide that no additional structures shall be placed on these lands and that the City shall not include the lands within its park and trail system. For the approximately twelve (12) fourteen (14) acres of High Hill lands not in the Runway Protection Area, as shown in Exhibit B, the City shall pay to Cherokee not less than $40,000 per acre or more than $70,000 per acre, depending on the appraised value. If the City purchases the approximately seven (7) acres of High Hill lands in the Runway Protection Area, it shall pay the appraised value, having taken into account all existing restrictions.
5. On the lands in the High Hill that are not subject to a conservation easement or other restriction, or used as the Tiziani and Stricker homesteads, the City shall support residential development at net densities of five (5) to seven (7) dwelling units per acre. Final development of these lands shall be subject to the City of Madison Subdivision Ordinances, Zoning Ordinances, and be consistent with the adopted Cherokee Special Area Plan.
6. The City shall acquire, in fee simple, approximately two hundred thirty-four (234) acres of marsh land (Marsh Area), as shown on Exhibit C. The City shall pay $5,000 per acre for the marsh lands and shall manage the Marsh Area in conformity with the Cherokee Marsh State Natural Area and with a City management plan for the area, as shown on Exhibit D.
7. The City agrees that it will not annex / attach the Marsh Area or the parts of the High Hill subject to a conservation easement or used as the Tiziani and Stricker homesteads until thirty (30) years from the date of the execution of this Memorandum of Understanding.
8. Cherokee intends to use the proceeds from these transactions to engage in a like-kind exchange under Section 1031 of the Internal Revenue Code and the City agrees to cooperate with Cherokee in effecting the exchange on the condition that there is no liability to the City.
9. This MOU is a non-binding statement of intentions. Final consummation of the transactions is subject to negotiation and execution of definitive agreements approved by the governing boards of both the City and Cherokee. The parties, however, shall be bound by a covenant of good faith and fair dealing in moving ahead with this project.
BE IT FURTHER RESOLVED that the Mayor and City Clerk are authorized to execute the Memorandum of Understanding.
BE IT FURTHER RESOLVED that the City of Madison Parks Division is authorized to apply for and administer funding for the purchase of lands in Cherokee Marsh from the Wisconsin Stewardship Grant Fund, the Dane County Conservation Fund, and other sources.