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File #: 27878    Version: Name: 9908 Purchase & Sale Agreement - Dayton & Johnson Streets
Type: Resolution Status: Passed
File created: 10/1/2012 In control: PLAN COMMISSION
On agenda: 11/27/2012 Final action: 11/27/2012
Enactment date: 11/28/2012 Enactment #: RES-12-00873
Title: Authorizing the execution of a Purchase and Sale Agreement between the City of Madison and Hovde Properties LLC (“Developer”) for the acquisition of a portion of City-owned property located at 316 W. Dayton Street by the Developer for assemblage into a mixed-use condominium project (“Project”) located at 305-309 W. Johnson Street and the purchase and buildout by the City of a “grey box” condominium unit and condominium parking stalls within the Project for the relocation of Madison Fire Department Administrative offices.
Sponsors: Paul R. Soglin, Michael E. Verveer
Attachments: 1. Link UDC File 26346, 2. Link Ord File 27649, 3. V1 9908 Purchase & Sale Agreement Master13-Nov-2012-07-53-44.pdf, 4. BODY.pdf, 5. 9908 Exhibit A.pdf, 6. 9908 Exhibit B.pdf, 7. 9908 Exhibit C.pdf, 8. 9908 Exhibit D.pdf, 9. 9908 Exhibit E.pdf, 10. 9908 Exhibit F.pdf
Fiscal Note
This resolution authorizes a purchase and sale agreement between the city and Hovde Properties LLC ("the developer") for sale of the current land and buildings occupied by Fire Department Administration. This property will be combined with other property owned by the developer as part of a mixed-use condominium project. The city will purchase and build-out space in the project for Fire Department Administration. The agreement includes incorporating Fire Station No. 1 into the project. The purchase and sale agreement includes a developer financing contingency that includes tax incremental financing assistance. The scope and extent of city support to the developer related to this contingency will be addressed during the contingency period.

Estimated costs of the city elements of the project (proceeds from sale of Fire Department Administration facility and land; Fire Administration condominium purchase, build-out, and furniture, fixtures and equipment (FF&E); purchase of parking condominium; cost to rehabilitate Fire Station 1; costs related to purchase; temporary lease space for Fire Administration during construction; and design costs) total $13.8 million. Included in the sale price of the current Fire Administration property is a $100,000 escrow that can be used by the developer to pay for environmental remediation and asbestos abatement on the property.

Architectural and Engineering Pre-Design and Design Services funding was approved in resolutions #25803 and #26870, and is also included in the 2013 capital budget. Funding for the temporary parking costs for Fire Station #1 and temporary lease space for Fire Administration are included in the 2013 adopted budget. Overall project costs are included in the 2013 capital improvement program, with funding sources to be addressed in the 2014 capital budget.

The table below summarizes the estimated costs:
2012 2013 2014 Total
Fire Administration Condominium Unit Purchase $ ...

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