Fiscal Note
The proposed resolution authorizes a Purchase and Sale Agreement with the Community Development Authority (CDA) to transfer CIty-owned sites within the master plan redevelopment area to the CDA. Doing so enables the CDA to secure financing for the redevelopment project contemplated in the master plan and phasing plans adopted in late 2024, including Low Income Housing Tax Credits, pending the receipt of all other necessary financing and land use approvals.
The TID 51 Project Plan includes $15.0 million in funding for CDA activities including redevelopment of the South Transfer Point (a/k/a the “Park and Badger Area”), development at Village on Park, and land banking. The 2024 and 2025 Adopted Capital Budgets for CDA Redevelopment’s South Madison Redevelopment project (#14431) included $2.0 million of TIF in 2024 for predevelopment work and $4.0 million of TIF Increment in 2025 (additional predevelopment work, estimated Phase 1 gap). The 2026 Executive Capital Budget includes $9.0 million in TIF Increment in 2026 (Phase 2 gap). This amount being available for the project is subject to Common Council adoption of the 2026 budget. If the 2026 budget is adopted as proposed, the total CDA Redevelopment capital budget for the South Madison Redevelopment project will total $15.0 million.
The cost of the housing component of each redevelopment phase is highly dependent on the number of units, level of affordability, and subsidy program selected. Design development suggests that the first phase of redevelopment may include approximately 200 housing units in two buildings (connected by shared underground parking) and financed by 4% Section 42 tax credits, as well as new Madison Fire Department and Public Health Madison & Dane County (PHMDC) facilities. This number of units is supported by the adopted South Madison Plan and preliminary financial analysis based on the site being located in a Qualified Census Tract.
Fire’s 2025 Adopted Capital Budget for the Fire Station 6 – W. Badger Road project (#17040) includes $3.47 million of General Fund-supported GO Borrowing (GF GO) in 2025 in addition to $4.4 million pf GF GO included in the 2021 and 2022 Adopted Capital Budgets. PHMDC's 2025 Adopted Capital Budget for the South Madison Public Health Clinic project (#14878) includes $15 million in 2025 ($8.5 million from Dane County, $6.5 million in Non-GF GO from the City). The second phase of redevelopment would relocate the South District Station and construct a new property and evidence facility at the former Town of Madison Hall site. Police's 2025 Adopted Capital Budget for the South District Station and Property & Evidence Facility project (#17044) includes $2.0 million in GF GO in 2025; the 2026 Executive Capital Budget includes $39.8 million in GF GO and $2.7 million in federal funding in 2027 to allow for construction of the new Fire Station 6 before the police facility.
No additional appropriation is required to authorize the Purchase and Sale Agreement.
Title
Authorizing a Purchase and Sale Agreement to transfer the land and improvements at 802, 810 and 818 West Badger Road to the Community Development Authority and/or its assigns for the Park Badger Redevelopment Project. (District 14)
Body
WHEREAS, the City acquired commercial properties at 810 and 818 Badger Road via the Land Banking program, which when combined with existing City-owned properties at 802 West Badger Road (decommissioned Metro South Transfer Point) and 825 Hughes Place (MPD South Station), form a contiguous 4-acre redevelopment parcel (the “Park and Badger Area”) suitable for high-quality, urban infill development on a key gateway intersection, consistent with the Guiding Principles of the South Madison Plan and the Comprehensive Plan more broadly; and
WHEREAS, on October 17, 2023, the Common Council designated the CDA as the Master Developer of the City-owned properties within the Park and Badger Area (RES-23-00652, File ID 80082); and
WHEREAS, on November 18, 2024, the CDA Board of Commissioners adopted Resolution No. 4633 approving the Redevelopment Master Plan and Phasing and Affordability Plan for the Park and Badger Area, with further approval and enactment by the Common Council on December 10, 2024 (RES-24-00723, File I.D. 85964); and
WHEREAS, said Plans contemplate an initial phase of redevelopment including two mixed-use buildings, together containing approximately 200 affordable housing units; Public Health Madison Dane County clinic, office and laboratory facilities; City of Madison Fire Station No. 6; and shared underground parking (collectively, the “Project”); and
WHEREAS, in its role as Master Developer and in order to apply to the Wisconsin Housing and Economic Development Authority (WHEDA) for Low Income Housing Tax Credits (LIHTC) in 2025, the CDA must demonstrate site control of the Park and Badger Area.
NOW, THEREFORE, BE IT RESOLVED that the Common Council hereby authorizes the execution of a Purchase and Sale Agreement (“PSA”) to transfer fee-simple title to the Park and Badger Area, 802, 810 and 818 Badger Road, to the CDA and/or its assigns for the total purchase price of One Dollar ($1.00), on substantially the same the terms and conditions contained in the Purchase and Sale Agreement attached hereto.
BE IT FURTHER RESOLVED that CDA staff and its development partners are hereby authorized to submit a Low Income Housing Tax Credit application for the Project to WHEDA, with the land transfer contingent upon a successful LIHTC award expected in Spring 2026 and receiving all other necessary City land use approvals.
BE IT FINALLY RESOLVED that the Mayor and City Clerk are hereby authorized to take any and all actions, execute any and all documents and instruments, make any and all filings and reasonable expenditures and take any and all reasonable steps it deems to be necessary, desirable or appropriate in order to carry out the purpose and intent of this resolution in a form approved by the Office of the City Attorney.