Fiscal Note
The proposed resolution authorizes a development agreement with Gorman Holdings Inc for property located within TID 37. Under the proposal, the City will provide a loan ($686,000) to the Developer through a land transaction. The loan will be repaid through future increment in the district. Based on current projections TID 37 is currently generating $1.5m in increment annually with $4.5m of unrecovered costs. The district was opened in 2006. This resolution requires no additional appropriation.
Title
2ND SUBSTITUTE - A Substitute authorizing (1) the execution of a Purchase and Sale Agreement with Gorman & Company Holdings, Inc. or its assigns (“Developer) for the purchase and redevelopment of City-owned property located at 2507 Winnebago Street (“the Property”); and (2) Authorizing the Mayor and City Clerk to execute a development agreement to sell the Property, valued at Six Hundred Eighty Six Thousand Dollars ($686,000) (“Land Value”), to Developer or its assigns for One Dollar ($1.00) and the Land Value financed by the City as a $686,000 loan to Developer (“TIF Loan”).
Body
WHEREAS, on July 22, 2013, the City of Madison adopted RES 13-00541 authorizing the execution of a Purchase and Sale Agreement (“PSA”) with Gorman and Company Holdings, Inc. for the purchase and redevelopment of 2504, 2507 and 2340 East Washington Avenue(“Union Corners”) and amended the 2013 adopted Capital Budget to recognize $6,000,000 in both sales proceed revenues and TIF financial assistance expenditures; and
WHEREAS, On October 30, 2013 the City of Madison (the "City") executed a Purchase and Sale Agreement (the "PSA") with Gorman Holdings, Inc. f/k/a Gorman & Company, Inc. (the "Guarantor") for the conveyance and redevelopment of properties owned by the City located at 2504, 2507 and 2340 Winnebago Street, Madison, WI and which may be collectively referred to as the “Union Corners Parcels”), for a mixed-use redevelopment project to be partially financed by a six m...
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