City of Madison - File #: 04890

• File #: 04890
• Version: 1
• Name: -Rescinding RES-05-00623, File No. 01552 adopted on July 21, 2005 and executing a development agreement to fund a TIF Loan to 309 W. Washington, LLC in the development of (Capitol West) located in Block 51 of the W Wash Ave corridor in TID #28 (Bassett).
• Type: Resolution
• Status: Passed
• File created: 11/1/2006
• In control: BOARD OF ESTIMATES (ended 4/2017)
• On agenda: 11/21/2006
• Final action: 11/21/2006
• Enactment date: 11/22/2006
• Enactment #: RES-06-00988
• Title: Rescinding RES-05-00623, File No. 01552 adopted on July 21, 2005 and Authorizing the Mayor and City Clerk to execute a development agreement to fund a $4,274,000 Tax Incremental Finance Loan to 309 W. Washington, LLC ("Developer") in the development of the first phase of a mixed-use redevelopment project (Capitol West) located in Block 51 of the West Washington Avenue corridor in TID #28 (Bassett).
• Sponsors: David J. Cieslewicz, Michael E. Verveer

Date	Ver.	Action By	Action	Result
11/21/2006	1	COMMON COUNCIL	Adopt	Pass
11/13/2006	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
11/7/2006	1	COMMON COUNCIL	Refer
11/1/2006	1	Community and Economic Development Unit	Fiscal Note Required / Approval
11/1/2006	1	Finance Dept/Approval Group	Approved Fiscal Note By The Comptroller's Office
11/1/2006	1	Community and Economic Development Unit	Referred for Introduction

Fiscal Note
This resolution rescinds a TIF loan agreement with The Alexander Company originally approved in 2005 and would authorize a replacement $4,274,000 loan to 309 W. Washington, LLC and its assigns ("Developer") for the construction of Phase I of a project to be located in the 300 block (Block 51) of West Washington Avenue, namely a 141-unit condominium project, 10,000 square foot commercial space and 268 parking stalls ("Project"). This loan would be repaid through incremental taxes generated by the Project and represents approximately 52% of the present value of all incremental taxes anticipated from the Project throughout the remaining 21-year life of the TID. This funding level is slightly above the 50% policy established by Common Council and would require a Council exception to TIF Policy.

Sufficient funding for this loan was authorized in the 2006 Capital Budget and is included in the proposed 2007 Capital Budget as recommended by the Board of Estimates.

While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 7 years, the Developer is required to guarantee a minimum payment if sufficient future tax increment is not available. The Developer is also obligated to return a 50% share of any surplus net proceeds, upon the receipt of a final audit of the project cost and sales records. The increment guarantee and equity participation payment are secured by a subordinated mortgage on the property.

Title
Rescinding RES-05-00623, File No. 01552 adopted on July 21, 2005 and Authorizing the Mayor and City Clerk to execute a development agreement to fund a $4,274,000 Tax Incremental Finance Loan to 309 W. Washington, LLC ("Developer") in the development of the first phase of a mixed-use redevelopment project (Capitol West) located in Block 51 of the West Washington Avenue corridor in TID #28 (Bassett).
Body
WHEREAS, the City of Madison has, by adoption on December 14, 2...