Fiscal Note
No appropriation is required.
Title
Authorizing the Mayor and City Clerk to execute an amendment to Land Use Restriction Agreement regarding 326 W. Wilson Street
Body
PREAMBLE
In 2000, the City provided a TIF Loan to support the development of Bedford Court condominiums. As part of that financing, the City required the developer to provide four income-restricted owner occupied residential units. With the City’s permission, the developer agreed to create those units in a location other than Bedford Court, at 326 W. Wilson Street, and to encumber those four units with a restriction that would limit their occupancy and future sales to owner-occupants whose income did not exceed 80% of Dane County median income (the “Restricted Units”). The TIF Loan for Bedford Court was paid in full, and the TIF District in which Bedford Court is located was dissolved. The Restricted Units, which did not receive City funding, are located in TID 25, which is still open. The Land Use Restriction Agreement recorded against the Restricted Units provides that the restrictions shall remain in place until the earlier of the closure of TID 25 or September 19, 2022. The Agreement may be amended or terminated upon the written agreement of the City and the owners.
From time to time since the economic downturn, City staff have received questions from owners of the Restricted Units and their realtors, inquiring as to the duration of the income restrictions, and asking for relief from the restrictions, to aid sales. The Restricted Units are assessed at $111,900 and contain less than 600 square feet. In order to assist the owners of the Restricted Units and future buyers, this resolution will increase the income limits from 80% of area median income to 125% ($71,625 for a household of one).
NOW THEREFORE, BE IT RESOLVED, that the Common Council hereby approves the increase in the income limits for 326 W. Wilson Street to 125% of area median income, and authorizes the Mayor and City...
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