Fiscal Note
The Resolution amends the agreement regarding the purchase price and disposition of City-owned property associated with development of an Interstate Commerce Park. The amendment reduces the current per-acre sale price from $72,438/acre to $40,000/acre (not including future escalators) for the remaining 38.79 acres, to better reflect market realities and to encourage development. The City's base purchase of the whole 59 acre development site is $2,325,000. Since the initial 2004 development agreeement, the City has been paid $1.033M for the sale of 18.4 acres. If the remaining 38.79 acres were sold at $40,000 each, total sale proceeds are approximately $1.55M. Therefore, under the amendment which re-sets the per-acre price to $40,000, the City might anticipate total sale proceeds of approximately $2.58M. This amount is an estimated $255,000 more than the City's acquisition costs. On balance, the amendment provides essentially a "break-even" arrangement for the City in terms of the acquistion costs and sales proceeds associated with the development, while also attempting to promote development in the face of market realities.
Title
Authorizing the execution of a Second Amendment to the “Agreement to Purchase and Undertake Development of the Interstate Commerce Park” executed between the City of Madison, Interstate Commerce Park and Barbara J. Hoel.
Body
In January 1994 the City of Madison (the “City”) conducted an Industrial Land Study that identified a shortage of developable land for industrial uses. On August 1, 2000 the Common Council adopted the Hanson Road Development Plan that identified lands north of Hoepker Road for light-industrial uses. On November 1, 2004 the City executed an “Agreement to Purchase and Undertake Development of the Interstate Commerce Park between the City of Madison and Gregory A. Rice and John R. Brigham and Rice Associates and Brigham Woods Corporation and Barbara J. Hoel” (the “Agreement”) for the City’s pu...
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