City of Madison - File #: 05380

• File #: 05380
• Version: 3
• Name: SUBSTITUTE. Development agreement to fund a TIF Loan to Union Corners LLC for the redevelopment of the former Rayovac site in the proposed TID #37 (Union Corners)
• Type: Resolution
• Status: Passed
• File created: 1/10/2007
• In control: Attorney's Office/Approval Group
• On agenda: 3/20/2007
• Final action: 3/20/2007
• Enactment date: 3/21/2007
• Enactment #: RES-07-00319
• Title: AMENDED SUBSTITUTE - Authorizing the Mayor and City Clerk to execute a development agreement to fund a $4,900,000 Tax Incremental Finance Loan to Union Corners, LLC ("Developer") in the development of the first phase of a mixed-use redevelopment project (Union Corners) located in the former Rayovac site, roughly bounded by East Washington Avenue, Winnebago and Milwaukee Streets in the proposed TID #37 (Union Corners) and making exceptions to TIF Policy 4(e) concerning the 50% Rule and 3.1(i) Equity Participation Payment formula.
• Sponsors: David J. Cieslewicz, Judy K. Olson

Date	Ver.	Action By	Action	Result
3/20/2007	3	COMMON COUNCIL	Adopt With Amendment(s)	Pass
3/20/2007	2	COMMON COUNCIL	Table	Fail
3/20/2007	2	COMMON COUNCIL	Move the Previous Question	Fail
3/12/2007	2	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
3/9/2007	2	Finance Dept/Approval Group	Approved Fiscal Note By The Comptroller's Office (SUBSTITUTES)
3/8/2007	2	Community and Economic Development Unit	Fiscal Note Required / Approval
1/29/2007	1	BOARD OF ESTIMATES (ended 4/2017)	Refer	Pass
1/24/2007	1	Finance Dept/Approval Group	Approved Fiscal Note By The Comptroller's Office (AFTER CC INTRO)
1/16/2007	1	COMMON COUNCIL	Refer
1/16/2007	1	BOARD OF ESTIMATES (ended 4/2017)	Fiscal Note Required / Approval
1/10/2007	1	Community and Economic Development Unit	Fiscal Note Required / Approval
1/10/2007	1	Finance Dept/Approval Group	Fiscal Note Pending
1/10/2007	1	Community and Economic Development Unit	Referred for Introduction

Fiscal Note
This resolution would authorize a $4,900,000 loan to Union Corners, LLC ("Developer") for the construction of the first phase of a project located in the vicinity of the intersection of East Washington Avenue, Winnebago and Milwaukee Streets. The redevelopment consists of a 131-unit condominium project, 70,000 square foot commercial space and 166 underground parking stalls ("Project"). This loan would be repaid through incremental taxes generated by the Project and represents approximately 53% of the present value of all incremental taxes anticipated from the Project throughout the remaining 26-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.

The 2007 Capital Budget provides authorization to capitalize this loan, funded with general obligation debt. While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 10 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 an equity participation payment equal to a 50% share of any surplus proceeds as defined by the equity participation formula in the TIF Policy that is in effect as of June 30, 2008. in the development agreement. The increment guarantee and equity participation payment are secured by a subordinated mortgage on the property.
Title
AMENDED SUBSTITUTE - Authorizing the Mayor and City Clerk to execute a development agreement to fund a $4,900,000 Tax Incremental Finance Loan to Union Corners, LLC ("Developer") in the development of the first phase of a mixed-use redevelopment project (Union Corners) located in the former Rayovac site, roughly bounded by East Washington Avenue, Winnebago and Milwaukee Streets in the proposed TID #37 (Union Corners) and making exceptions to TIF Policy 4(e) concerning the 50% R...