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File #: 14002    Version: Name: Midwest BioLink Commercialization and Business Center
Type: Resolution Status: Passed
File created: 3/11/2009 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 3/31/2009 Final action: 3/31/2009
Enactment date: 4/2/2009 Enactment #: RES-09-00309
Title: AMENDED SECOND SUBSTITUTE - For the Midwest BioLink Commercialization and Business Center Tto commit to providing the local community match to MDC, or its assigns, through an investment of $X,XXX,XXX $1,450,750 $2,049,250 through TID # 39, and a contribution of a 2.63 acre property within the BioAg Gateway (World Dairy Campus - Lot # 10) valued at approximately $573,000; and, to amend the Department of Planning & Community & Economic Development Capital Budget, Project # 15, “TID # 39 - Stoughton Road” by up to $X,XXX,XXX $1,450,750 $2,049,250 with debt to be supported by TID # 39 proceeds; and, to authorize the execution of a development agreement with MDC, or its assigns, for the construction and management of BioLink, including any and all required TIF loan and property conveyance (World Dairy Campus - Lot # 10) documents; and, to authorize the execution of any and all agreements with the EDA regarding this grant.
Sponsors: Judy Compton, David J. Cieslewicz, Mark Clear
Attachments: 1. Council Memo 3-31-09.pdf, 2. BioLink Business Plan 3-31-09.pdf, 3. Orbitec Letter of Support--Biz Plan 090324.pdf, 4. BOE_31000sf Memo 3-23-09.pdf, 5. MDC - Biolink Gap Analysis Report 3-19-09.pdf, 6. Thrive Letter of Support.pdf, 7. Orbitec Letter of Support.pdf, 8. DATCP Letter of Support.pdf, 9. DCOMM Letter of Support.pdf, 10. MGE Letter of Support for BioLink in BioAg Gateway.pdf, 11. UW Chancellor support Letter.pdf, 12. OEI Support Letter.pdf, 13. 14002_version1.pdf, 14. 14002_version2.pdf, 15. BioLink Business Plan 3-17-09.pdf, 16. BioLink Council Presentation 3-17-09.pdf, 17. 13992 admendment.pdf, 18. 14002 Registrastion Stmt 3.31.09.pdf, 19. 14002 Registration Stmt.pdf
Fiscal Note
This resolution would amend the 2009 Capital Budget to authorize the expenditure of $2,049,250 from TIF District #39 to provide a City contribution towards the construction of a bio-agricultural business incubator facility owned by the Madison Development Corporation. The City's total contribution to this project would be $2,622,250, funded with additional general obligation debt of $2,049,250 and a contribution of City-owned land valued at $573,000. The debt incurred for this project would be eligible for reimbursement from newly created TIF District #39. The remainder of the facility's $6,200,000 construction cost and the operating deficit predicted during the first two years of operation would be funded with a $4,500,000 grant from the U.S. Economic Development Agency.

This proposed project does not meet several of the minimum thresholds or standards contained in the City's current policy related to TIF investments in private developments. The proposed terms of the project would not require an equity contribution or increment guarantee from the developer, two exceptions to current TIF policies that normally would help secure the City's interest in successful project completion. In addition, preliminary estimates of the TIF increment generated by the new facility during the full remaining life of the TIF district would be sufficient to repay an initial investment of only $300,000 to $500,000. Thus, the City's proposed initial TIF investment of $2,049,250 far exceeds the 50% rule contained in the current TIF policy. It should be noted that, although the tax increment generated by this project would be insufficient to recoup the City's investment, it is likely that growth in the base value of other property within this large district would be sufficient to pay back the City's $2,049,250 debt in TID #39 prior to the end of the district's life.
AMENDED SECOND SUBSTITUTE - For the Midwest BioLink Commercialization and Business Center Tto c...

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