Fiscal Note
The proposed project is located within the boundaries of a Tax Incremental District (TID) that anticipates certification by the Wisconsin Department of Revenue during the first quarter of 2014. The proposed resolution provides that no City loan disbursement would occur prior to DOR certification of the new TID. The City’s loan would be funded by general obligation debt of $400,000. The debt incurred for this project would be eligible for reimbursement from a newly created TID #44. The TIF Loan represents approximately 56% of the present value of tax increments generated by the project, requiring a minor exception to TIF Policy. In addition, the TIF Loan is contingent upon the project being awarded Section 42 Low Income Housing tax credits by the Wisconsin Housing and Economic Development Authority (WHEDA), $394,000 in City CDBG assistance, $266,000 from the Madison Affordable Housing Trust Fund and $420,000 from the Federal Home Loan Bank during 2014. The 2014 adopted capital budget of the Planning and Community and Economic Development agency authorizes the expenditure of $400,000 for the project (project no. 22, "TID 44 - Royster Clark").
Title
Authorizing the Mayor and City Clerk to execute a development agreement to fund a $400,000 Tax Incremental Finance Loan to Pinney Lane Apartments, LLC (“Developer”) to assist in the development of an approximately 70-unit income-restricted housing project located at Lot 5 of the Royster Corners plat, generally located at the corner of Cottage Grove Road and Dempsey Road in TID #44 (Royster Clark).
Body
WHEREAS on September 23, 2013 the City of Madison adopted RES 31246 approving the creation of a Project Plan and Boundary for Tax Incremental District (TID) #44 (Royster Clark) (“District”); and
WHEREAS the District is bounded by whole parcels of real property along Cottage Grove Road starting at Monona Drive, going east past US Hwy 51 to Flora Street; and
WHEREAS, Pinney Lane Apartments, LLC (“Develope...
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