Madison, WI Header
File #: 36357    Version: 1 Name: 10442 Anchor Bank TIF Loan
Type: Resolution Status: Passed
File created: 11/25/2014 In control: COMMON COUNCIL
On agenda: 3/3/2015 Final action: 3/3/2015
Enactment date: 3/5/2015 Enactment #: RES-15-00208
Title: Authorizing the Mayor and City Clerk to execute a development agreement to fund a $13,317,000 Tax Incremental Finance Loan to 25 West Main, LLC, or assigns, to assist in the development of and commercial redevelopment project located at 126 South Carroll Street and within the boundary of a proposed TID #45.
Sponsors: Paul R. Soglin, Michael E. Verveer
Attachments: 1. Anchor Bank TIF Report (AMENDED) 2-3-15.pdf, 2. Anchor Bank TIF Report 11-25-14.pdf, 3. 36357 w Amend Master22-Jan-2015-04-02-59.pdf, 4. 36357 May Comments.pdf, 5. 36357 Info.pdf
Fiscal Note
This resolution would authorize a $13,317,000 loan to 25 West Main, LLC ("Developer") for the redevelopment of property located at 126 South Carroll and subterranean lands located beneath the City right of way at Carroll Street connecting to 25 West Main. The site would be included in a new proposed TID #45 (Capitol Square West). A boundary and Project Plan is required to be adopted in 2015 by the Common Council and approved by the TIF Joint Review Board.

The Project consists of approximately 186,000 square feet of office, approximately 100 apartment units, 43,000 gross square feet of commercial and retail space, 2,400 square feet of storage and approximately 548 parking stalls ("Project"). This loan would be repaid through incremental taxes generated by the Project and represents approximately 71% of the present value of all incremental taxes anticipated from the Project throughout the 27-year life of proposed TID #45.

Due to construction timing, $5,000,000 of the TIF Loan for this Project is anticipated to be disbursed to the Project in 2015, upon Joint Review Board approval of the new TID but in advance of the TID #45 boundary and Project Plan being certified by the Wisconsin Department of Revenue (DOR). Such certification is anticipated during the first quarter of 2016. Upon the City’s receipt of such DOR certification, the City will disburse the balance of the TIF Loan in 2016.

In the event that the TID is not certified by the Wisconsin Department of Revenue, Developer shall be credited for the City portion of annual actual taxes levied on the Project to repay the $5,000,000 disbursed prior to DOR certification. The City portion of such taxes is estimated at approximately $700,000 per year. Developer shall be obligated to repay all funds disbursed by the City as a conventional loan, amortized over ten years, together with the costs of issuance and interest on the unpaid principal balance at a rate equal to the rate of the City’s borrowing, ...

Click here for full text