Fiscal Note
Funding of $400,000 for the Small Cap TIF program was authorized in the Planning and Development 2007 Adopted Capital Budget, Project #14, "TID 28 - Bassett Neighborhood." Tax increments currently available in TID #28 are sufficient to capitalize loans from this program. Therefore, no City borrowing will be required. TIF Law requires that the District must close when tax increments recover all the District expenditures.
Title
AMENDED - Authorizing the creation of a Bassett Neighborhood Small Cap TIF Program in Tax Incremental District #28 (Bassett Neighborhood) to provide funding for the conversion of rental properties to owner-occupied properties.
Body
PREAMBLE
Since 1990, over 3,700 new housing units have been approved through Planned Unit Developments in the downtown/near campus area. Of that number, approximately 1,831 units have been created primarily for students.
Within those 1,831 units, approximately 4,856 bedrooms have been created. Housing development projects within or adjacent to the Bassett neighborhood account for 1,074 of the units and 2,837 of the bedrooms. This translates into 59% of the total student-oriented units and 58% of the student-oriented bedrooms for the downtown/near campus area.
As the market for student housing has shifted dramatically in the past few years to the newer and larger units, the older existing housing stock in Bassett is coming into the market. Furthermore, with the recent slow down in the condominium market in downtown Madison, a slow down in the acquisition of properties for redevelopment has also occurred.
The adopted Bassett Neighborhood Master Plan (1997) explicitly identified areas within the Bassett neighborhood where converting existing student-oriented rental properties to owner-occupied properties would complement other initiatives to enhance the quality of life in the neighborhood.
With the adoption of TID 28, tax increment generated by new development has created an...
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