Fiscal Note
The proposed resolution authorizes the execution of a Purchase and Sale Agreement between the City of Madison and the owner of the property. The estimated acquisition cost is $4,250,000 for the parcel plus $50,000 in additional real estate costs for environmental site assessment, title work, miscellaneous closing costs, and staff time for a total amount of $4,300,000. The source of acquisition funding will be cash available in the City’s General Land Acquisition Fund, subject to adoption of the 2027 Capital Budget (see Finance Committee amendment #1 to the 2027 Executive Capital Budget). $42,500 of earnest money will be paid in 2026 utilizing existing carryforward budget authority in the General Land Acquisition Fund (Munis program 63060). The $50,000 of additional real estate costs for environmental site assessment, title work, miscellaneous closing costs, and staff time will be paid in 2026 and 2027 utilizing existing carryforward budget authority in the General Land Acquisition Fund.
Assuming the Lease contemplated in Exhibit B is executed following City’s acquisition of the property, the Lessee will be responsible for paying maintenance and repair expenses, property taxes, and will pay the City $2,000/month as rent, which will be deposited in the General Land Acquisition Fund.
Title
Authorizing the execution of a Purchase and Sale Agreement between the City of Madison and the J. W. Jung Seed Co. for the City’s acquisition of the property located at 1313 Northport Drive, and execution of a Lease between the City of Madison and J. W. Jung Seed Co. for the property located at 1313 Northport Drive upon the City’s acquisition. (District 18)
Body
WHEREAS, J. W. Seed Company, a Wisconsin Corporation (“Seller”) is the owner of the property containing approximately 147,638 square feet of land and an approximately 22,127 square foot commercial building, located at 1313 Northport Drive, as legally described in the attached Exhibit A (“Property”); and,
WHEREAS, the City of Madison (“City”) desires to purchase the Property for the development of a joint-use facility for the Madison Fire Department and Madison Police Department; and,
WHEREAS, the Seller agrees, by virtue of an executed Purchase and Sale Agreement (“Agreement”), to sell the Property to the City for a purchase price of $4,250,000, which was negotiated based on an appraisal reviewed and approved by the City’s Office of Real Estate Services; and,
WHEREAS, the City’s Office of Real Estate Services has determined the need to allocate an additional $50,000 to cover certain real estate costs for environmental site assessment, title work, miscellaneous closing costs, and staff time; and,
WHEREAS, the City will pay the Seller one percent (1%) of the purchase price ($42,500) as "Earnest Money," as stated in Exhibit A; and,
WHEREAS, the City and the Seller (“Parties”) agree that the Agreement for the acquisition of the Property shall include an exhibit, attached hereto as Exhibit B, defining initial terms, in the event the Seller desires to lease the Property after conveyance to the City.
NOW THEREFORE BE IT RESOLVED that the City’s Common Council hereby authorizes the Mayor and City Clerk to execute the Purchase and Sale Agreement attached hereto as Exhibit A, substantially on the terms, conditions and obligations contained therein, and take any further action required to accomplish the purpose of this resolution in a form approved by the City Attorney; and,
BE IT FURTHER RESOLVED that the City’s Common Council hereby authorizes the following expenditures: $42,500 in 2026 for earnest money utilizing carryforward budget authority in the General Land Acquisition Fund, up to $50,000 in 2026 and 2027 for additional real estate costs including, but not limited to, environmental site assessment, title work, miscellaneous closing costs, and staff time utilizing carryforward budget authority in the General Land Acquisition Fund, and $4,250,000 in 2027 for property acquisition subject to inclusion within the 2027 General Land Acquisition Fund budget; and,
BE IT FURTHER RESOLVED that the City’s Common Council hereby authorizes the Mayor and City Clerk to execute the Lease attached hereto as Exhibit B, substantially on the terms, conditions and obligations contained therein, and take any further action required to accomplish the purpose of this resolution in a form approved by the City Attorney; and,
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 transactions contemplated in this resolution, on a form and in a manner that has been approved by the City Attorney.