Fiscal Note
Extension of tenant leases in the City owned property on Allied Drive beyond July, 2007 will result in increased holding costs prior to redevelopment of the property. Presently, the property management and other holding costs associated with these occupied properties is approximately $25,000 per month and were not anticipated to extend beyond July. The total amount of increased cost would be dependent on the additional length of time that these properties remain occupied. Holding costs of this nature would be eligible for reimbursement from TIF District #29 to the extent that sufficient increment is generated from redevelopment in the future.
Title
AMENDED SUBSTITUTE - Directing the Director of Planning and Development to provide written authorization to Meyer Realty and Management, Inc. to enter into new leases with individuals and families who are displaced from their housing due to nuisance abatement actions of the City of Madison if they are not part of the reason for the City nuisance abatement action and to renew leases of current tenants who are in good standing.
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WHEREAS, on May 16, 2006 the City of Madison acquired a 129-unit apartment complex located at 2317-2333, 2345-2355 and 2409-2437 Allied Drive ("Property"); and,
WHEREAS, on April 18, 2006 the Common Council adopted a resolution (Enactment No: RES-06-00366)) which authorized City staff, contingent upon City acquisition of the property, to negotiate an agreement for the ongoing management and maintenance of the property and that the proposed agreement be brought before the Common Council for further action; and,
WHEREAS, on June 20, 2006 the Common Council authorized the Mayor and City Clerk to execute a Property Management Agreement with Meyer Realty and Management, Inc. for the management of a City-owned 129-unit apartment complex located at 2317-2333, 2345-2355 and 2409-2437 Allied Drive; and,
WHEREAS, one of the terms and conditions of that agreement required the Property Manager "To ensure that all tenants vacate their units on the expiration of their current lease or after one hundred eighty (180) days of written notice from the City of the termination of their tenancy, whichever occurs later. In no event shall the Manager enter into any new lease, renew any current lease or permit any holding over by tenants following expiration or termination of their current lease without the prior written approval of the City."; and,
WHEREAS, the City of Madison has pursued discussed possible a nuisance abatement actions against owners of property located in the Allied Drive area and these discussions have that has resulted in the landlord taking actions that required need for tenants to relocate from the Allied Drive area; and,
WHEREAS, the City of Madison may have discussions about and pursue additional nuisance abatement actions against owners of properties located in the Allied Drive area that may result in additional individuals and families being relocated from the Allied Drive area; and,
WHEREAS, we have no firm date for renovation or demolition and reconstruction of buildings on the City owned properties in Allied Drive;
NOW THEREFORE BE IT RESOLVED, that the Common Council directs the Director of Planning and Development to provide written authorization to Meyer Realty and Management, Inc. to permit Meyer Realty and Management, Inc. to enter into new leases with individuals and families who are displaced from their housing due to nuisance abatement actions of the City of Madison if they are not part of the reason for the City nuisance abatement action or other Allied residents who lose their housing and qualify under City screening criteria; and
BE IT FURTHER RESOLVED, that City of Madison staff or contracted providers should also attempt to assist these residents to secure other housing in the Allied neighborhood; and
BE IT FURTHER RESOLVED, that the Allied Drive Task Force, with assistance of staff, develop screening criteria and conditions under which tenants may be admitted to the City-owned properties; and
BE IT FURTHER RESOLVED, that if month-to-month leases are used, a 60 day notice to terminate shall be utilized unless there is good cause to terminate for violations of the lease;
BE IT FINALLY RESOLVED, that the Common Council directs the Director of Planning and Development is permitted to provide written authorization to Meyer Realty and Management, Inc. to renew leases of current tenants who are in good standing.