Fiscal Note
The proposed resolution authorizes the execution of a Purchase and Sale Agreement (PSA) between The Salvation Army and the City of Madison. The City will purchase the property at 3030 Darbo Dr from The Salvation Army for $3.3 million. The proposed resolution further authorizes the execution of a lease between the City of Madison and The Salvation Army. After purchase of the property, the City will lease the property to The Salvation Army for $1 per year. The initial lease term runs through December 31, 2027. After the initial term, the lease can be extended up to three times for a term of one year each. The conditions of the extensions would be the same as the initial lease term.
Total acquisition, closing, and holding costs are estimated to be $3,385,000. Funding for the proposed acquisition and associated expenses is available in the adopted Capital Budget. The Community Development Division's Capital Budget includes $2.5 million for purchase of the property (project #13775). This budget was authorized in 2022 and has carried forward. The project was originally funded by federal American Rescue Plan Act (ARPA) monies. The 2024 year-end appropriation resolution (RES-24-00737, Legistar file 86200) transferred the $2.5 million in ARPA funding to the General Fund for eligible General Fund expenditures, and the ARPA funding for this property acquisition was replaced by a direct appropriation to the Capital Fund from the General Fund. The remaining $885,000 is available in the Economic Development Division's Land Banking capital program (program #12640). No additional appropriation required.
Title
Authorizing the City’s execution of a Purchase and Sale Agreement and Lease between the City of Madison and The Salvation Army or their successors and assigns, for the purchase of the property located at 3030 Darbo Drive in the City of Madison, and leaseback period subsequent to closing. (District 15)
Body
WHEREAS, The Salvation Army (“Seller”) is the ow...
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