Fiscal Note
The proposed resolution amends the 2021 Adopted Capital Budget to create a Temporary Family Shelter project in the Community Development Division’s budget. Funding in this project will be used to acquire the former Karmenta Center nursing home to temporarily serve a family shelter. As proposed, the project will be funded with $3.0 million in GO Borrowing. The project budget includes initial lease and holding costs ($250,000) and funding to purchase the property ($2.75 million).
The property will be operated under an agreement with the Salvation Army. The estimated annual operating costs for the facility is approximately $930,000. Six months of this funding has been awarded through the Emergency Solutions Grant (ESG). It is anticipated the remaining six months will continue to be funded through a future ESG grant award. The City’s General Fund does not contribute to the operating costs for this facility.
Following its temporary use as a family shelter, it is anticipated the property could be used for redevelopment, possibly including affordable housing.
Title
Amending the City’s 2021 Adopted Capital Budget by appropriating $3.0 million in GO Borrowing within the Community Development Budget for a Temporary Family Shelter project; and, authorizing the execution of a six-month Lease Agreement between the City of Madison and Watson Smith LLC for the City’s lease of the property located at 4502 Milwaukee Street (the “Property”) with the option to purchase the property prior to the end of that lease, and authorizing the City to enter into a sub-lease of the Property with the Salvation Army for the purpose of supporting the provision of temporary family shelter services.
Body
WHEREAS, Watson Smith LLC (“Lessor”) is the owner of the property containing 144,200 square feet of land and 36,192 square feet of commercial skilled nursing facility space, located at 4502 Milwaukee Street and legally described on Exhibit A and depicted on Exhibit B, attached her...
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