Fiscal Note
The proposed resolution partially restores funding to the TID 51 capital program that was transferred to the Land Banking capital program via legislative file 86986 (RES-25-00127) in February 2025. File 86986 authorized the transfer of $1,170,000 in TIF increment from TID 51 (program 99011) to Land Banking (program 12640) for the purpose of funding the demolition of four land banked properties in South Madison. The transfer of this amount was based on estimates available at the time. Additionally, the transfer was needed in order to comply with TID accounting rules regarding the maintenance of properties within TID boundaries. Bids received for this demolition work came in significantly lower than the $1,170,000 transferred; the contract was awarded via legislative file 87710 (RES-25-00278) in the total amount of $795,929. The contract is being funded by the Land Banking program ($547,976) and the CDA Redevelopment South Madison Redevelopment project (project 14431, $247,953). Of the $1,170,000 transferred to Land Banking for the demolitions, $622,024 is now available after awarding the contract. In order to support additional small business development programs within TID 51, the proposed resolution amends the 2025 Capital Budget for the Economic Development Division by transferring $550,000 in TIF increment from Land Banking to TID 51.
Title
Amending the 2025 Economic Development Division Capital Budget by transferring $550,000 from Land Banking (Project #12640) to TID #51 (Project #99011) for the purpose of funding small business development programs (District 14).
Body
WHEREAS, Legistar #86986 amended the 2025 Economic Development Division Capital Budget by authorizing the transfer of $1,170,000 from TID #51 (Project #99011) to Land Banking (Project #12640) for the purpose of funding demolitions of Land Banked properties at 1810 S. Park Street, 1901 S. Park Street, 814 North Avenue, and 826 North Avenue; and,
WHEREAS, the bids for these demolitions are significantly less than anticipated, and there is now $550,000.00 available for other uses; and,
WHEREAS, the City of Madison desires to expand small business development programs within Tax Increment Finance Districts when there is capacity to do so; and,.
WHEREAS, these small business development programs include the Façade Grant Program, Building Improvement Grant Program, Small Cap TIF Program, and Commercial Ownership Assistance Program.
NOW THEREFORE BE IT RESOLVED that the 2025 Economic Development Division Capital Budget is amended by transferring $550,000 from Land Banking (Project #12640) to TID #51 (Project #99011) for the purpose of funding small business development programs.