Fiscal Note
This amendment changes some aspects of the Purchase and Sale agreement that primarily affect project phasing, but the basic financial terms of the agreement are unchanged. The City’s total costs for acquiring the Property are an estimated $3,496,925 (including purchase price of $3,300,000 -- $6.64 per sq ft) and $196,925 for prorated taxes and miscellaneous acquisition (appraisal, environmental assessment) and closing costs. The City holding costs on the Property are approximately $131,443. The City is selling the Property for $6,000,000 ($12.07 per sq ft). The Property is within Tax Incremental Financing District No. 37 Union Corners and the costs to acquire the Property were charged to the TID. Sales proceeds will be credited to the TID. This second amendment conveys the first 4 phases of the development for $5 million. Phases 5 and 6 will be conveyed based on demonstration of a financing gap of $1 million.
Title
SUBSTITUTE - Authorizing the execution of a Second Amendment to the Purchase and Sale Agreement executed between the City of Madison and Gorman & Company
Body
WHEREAS, On October 30, 2013 the City of Madison (the "Seller") executed a Purchase and Sale Agreement (the "Agreement") with Gorman & Company, Inc. (the "Buyer") for the conveyance and redevelopment of properties owned by the City located at 2504, 2507 and 2340 Winnebago Street, Madison, WI (all of which are legally described on Exhibit A attached hereto) 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 million dollar ($6,000,000) TIF loan; and
WHEREAS, under the terms of the Agreement the Buyer was required to develop the Union Corners Parcels in four phases (the “Redevelopment Project”). Phase 1 of the Redevelopment Project was to consist of 60,000 square feet of medical clinic space and the other three phases were to consist of a mix of residential, retail and commercial...
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