City of Madison - File #: 30387

• File #: 30387
• Version: 2
• Name: 9967 309 W Johnson TIF
• Type: Resolution
• Status: Passed
• File created: 5/28/2013
• In control: BOARD OF ESTIMATES (ended 4/2017)
• On agenda: 6/4/2013
• Final action: 6/18/2013
• Enactment date: 6/19/2013
• Enactment #: RES-13-00462
• Title: SUBSTITUTE Authorizing 1) the Mayor and City Clerk to execute a development agreement to fund a $3,025,000 Tax Incremental Finance Loan (“TIF Loan”) to W. Johnson Lending, Inc. Hovde Realty, Inc., a Wisconsin Corporation (“Lender”), which will then immediately loan the proceeds of the TIF Loan to Hovde West Johnson, LLC (“Borrower”) to assist in the development of the 309 West Johnson apartments and commercial redevelopment project located at 309 West Johnson and 316 West Dayton in the proposed amendment to TID #32 (State Street) and 2) an amendment to the 2013 City of Madison Capital Budget to authorize funding of the TIF Loan.
• Sponsors: Michael E. Verveer

Date	Ver.	Action By	Action	Result
6/18/2013	2	COMMON COUNCIL	Adopt - 15 Votes Required	Pass
6/10/2013	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT (15 VOTES REQUIRED) - REPORT OF OFFICER	Pass
6/4/2013	1	COMMON COUNCIL	Refer	Pass
5/28/2013	1	Economic Development Division	Referred for Introduction

Fiscal Note
This resolution would authorize a $3,025,000 loan to W. Johnson Inc. Hovde Realty, Inc., a Wisconsin Corporation (“Lender”) to be immediately loaned by Lender to Hovde West Johnson, LLC ("Borrower") for the redevelopment of property at the intersection of State Street and West Johnson Streets. One parcel of the site is currently owned by the City of Madison and houses the Fire Administration building that will be sold to Borrower for the development of the Project. As a component of the Project, Borrower shall construct a Fire Administration condominium and Fire Administration Parking condominium to be sold to the City at cost. For the purposes of TIF gap analysis, the cost of constructing the Fire Administration and Fire Administration Parking condominiums was omitted from the calculation.

The redevelopment consists of an 478,000 gross square feet of residential, office, retail and parking uses comprised of approximately 255 apartment units, approximately 331 parking stalls, approximately 24,000 gross square feet of office and retail space and approximately 30,000 gross square feet of Fire Administration office condominium unit and a 25-stall Fire Administration parking condominium unit or other use allowed by the zoning text (“Project”). The Fire Administration office condominium unit and the Fire Parking condominium unit (collectively, the “Fire Units”) shall be conveyed by Borrower to the City in accordance with a Purchase and Sale Agreement between the parties.

This loan would be repaid through incremental taxes generated by the Project and represents approximately 52% of the present value of all incremental taxes anticipated from the Project throughout the remaining 17-year life of TID #32 and its proposed boundary amendment that includes a portion of the Project. This would require a minor exception to the City’s 50% Rule in its TIF Policy.

The TIF Loan would be disbursed prior to certification of the boundary amendment being provided by the ...