Fiscal Note
The 2011 adopted capital budget of the Planning and Community and Economic Development Department (PCED) includes authorized funding of $75,000 for marketing (Project No. 6, “TID 39 - Stoughton Road,” Account No. 823901), of which an estimated $65,500 remains available to support the reallocation of $59,000 for project costs. No additional appropriation is required.
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Amending Project No. 6 of the 2011 Department of Planning & Community & Economic Development Capital Budget to authorize $59,000 to be redirected to reimburse Madison Development Corporation for BioLink project costs.
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WHEREAS, the City of Madison and Madison Development Corporation (“MDC”) were successfully awarded a grant of approximately $4.5 million from the U.S. Economic Development Administration (“EDA”) for the construction of the BioLink facility within the BioAg Gateway; and,
WHEREAS, MDC expended approximately $159,000 to date on architectural costs, surveying, soil testing, construction cost estimating, tenant cultivation, etc. (“BioLink project costs”); and,
WHEREAS, $100,000 of the $159,000 is being funded through a loan from the Wisconsin Economic Development Corporation (formerly WI Dept. of Commerce) and $59,000 has been self-funded by MDC; and,
WHEREAS, MDC completed this work under the assumption that it would be reimbursed through the EDA grant upon construction of BioLink; and,
WHEREAS, through the architectural and construction cost estimating work, MDC identified that construction costs for BioLink would exceed the estimates outlined within the original project budget; and,
WHEREAS, MDC has suspended work on the project until such time as an additional funding source to cover this construction gap can be identified; and,
WHEREAS, the EDA will support an extension of the construction start deadline to provide the City and MDC with more time to explore options for closing this construction funding gap; and,
WHEREAS, given the uncertainty of whether...
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