Fiscal Note
This amendment changes some aspects of the original Purchase and Sale agreement that primarily affect project phasing, but the basic financial terms of the agreement are unchanged. The City’s total costs for acquiring the Property are an estimated $3,496,925 (including purchase price of $3,300,000 ($6.64 per sq ft) and $196,925 for prorated taxes and miscellaneous acquisition (appraisal, environmental assessment) and closing costs. The City holding costs on the Property are approximately $131,443. The City is selling the Property for $6,000,000 ($12.07 per sq ft). The Property is within Tax Incremental Financing District No. 37 Union Corners and the costs to acquire the Property were charged to the TID. Sales proceeds will be credited to the TID.
Title
Authorizing the execution of a First Amendment to the Purchase and Sale Agreement executed between the City of Madison and Gorman & Company.
Body
On October 30, 2013 the City of Madison (the “Seller”) executed a Purchase and Sale Agreement (the “PSA”) with Gorman & Company, Inc. (the “Buyer”) for the conveyance and redevelopment of properties owned by the City located at 2504, 2507 and 2340 Winnebago Street, Madison, WI (collectively, the “Property”) for a mixed-use redevelopment project. Under the terms of the PSA the Buyer was required to develop the Property in four phases. Phase 1 was to consist of 60,000 square feet of medical clinic space and the other three phases were to consist of a mix of residential, retail and commercial space. Phase 1 had to be developed first with development of the remaining three phases being developed in any order. The PSA contained Buyer Contingencies that had to be satisfied or waived within one hundred eighty (180) days of October 30, 2013. The Buyer Contingencies included land use approvals, project financing, Property inspections, survey and title, environmental review and TIF loan documents. The PSA provided that the Buyer could extend the Buyer Conti...
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