Fiscal Note
Adoption of this resolution would authorize attachment of land from the Town of Madison and allow for the development of a proposed hotel located within the newly expanded City boundary. Under the terms of the attachment agreement, the City would provide all municipal services to the development and would be required to pay one half of all future property tax and room tax revenues generated from the development to the Town of Madison until the Town ceases to exist. Given the relatively small geographic area and commercial nature of the site, the additional expenses incurred to provide City services are not expected to be significant. The potential revenue increase to the City and the Town could be substantial, however, if the proposed development occurs.
In the most recent year, local property taxes collected from parcels within the development site by the City totaled about $11,000, while the Town collected about $7,000 from that portion of the site currently located in the Town. If no development occurs, roughly the same total amount of local property tax ($18,000) would be collected by the City, with half of that amount ($9,000) paid to the Town as a revenue sharing payment pursuant to the agreement.
If, on the other hand, the site develops as successfully as has been proposed, the local property taxes generated from that development could be in the range of $100,000 to $150,000 per year, with additional room taxes of $350,000 to $450,000 generated by the hotel. In this scenario, the total annual tax revenue generated from the site ($450,000 - $600,000) would be shared equally between the City and the Town.
Title
Authorizing the Mayor and City Clerk to enter into an Early Attachment and Revenue Sharing Agreement with the Town of Madison to facilitate the attachment and future development of four parcels located in the Town at 2155-2165 Rimrock Road and 250 West Beltline Highway.
Body
WHEREAS, the City of Madison (hereinafter referred to a...
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