Fiscal Note
The proposed resolution authorizes a Purchase and Sale Agreement with the Community Development Authority (CDA) to transfer CIty-owned sites within the master plan redevelopment area to the CDA. Doing so enables the CDA to secure financing for the redevelopment project contemplated in the master plan and phasing plans adopted in late 2024, including Low Income Housing Tax Credits, pending the receipt of all other necessary financing and land use approvals.
The TID 51 Project Plan includes $15.0 million in funding for CDA activities including redevelopment of the South Transfer Point (a/k/a the “Park and Badger Area”), development at Village on Park, and land banking. The 2024 and 2025 Adopted Capital Budgets for CDA Redevelopment’s South Madison Redevelopment project (#14431) included $2.0 million of TIF in 2024 for predevelopment work and $4.0 million of TIF Increment in 2025 (additional predevelopment work, estimated Phase 1 gap). The 2026 Executive Capital Budget includes $9.0 million in TIF Increment in 2026 (Phase 2 gap). This amount being available for the project is subject to Common Council adoption of the 2026 budget. If the 2026 budget is adopted as proposed, the total CDA Redevelopment capital budget for the South Madison Redevelopment project will total $15.0 million.
The cost of the housing component of each redevelopment phase is highly dependent on the number of units, level of affordability, and subsidy program selected. Design development suggests that the first phase of redevelopment may include approximately 200 housing units in two buildings (connected by shared underground parking) and financed by 4% Section 42 tax credits, as well as new Madison Fire Department and Public Health Madison & Dane County (PHMDC) facilities. This number of units is supported by the adopted South Madison Plan and preliminary financial analysis based on the site being located in a Qualified Census Tract.
Fire’s 2025 Adopted Capital Budget for the Fi...
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