Fiscal Note
No appropriation is required.
Title
Creating Section 4.29 of the Madison General Ordinances to require Proprietary Interest Protection Agreements in loan agreements.
Body
DRAFTER'S ANALYSIS: The City provides financial assistance to developments through TIF and other forms of loans. In each of these loan agreements, the City requires compliance with certain City ordinances to protect employees such as Living Wage, Affirmative Action, and Equal Benefits. These requirements only apply to the direct recipient of financial assistance. Requiring project users to provide the same benefits to their employees requires private agreements between the recipient of financial assistance and the employees. Under circumstances where the City has a proprietary interest, the City can require the recipient to enter such a private agreement. Several municipalities around the country require similar agreements, and they have been upheld in courts around the country including Hotel Employees & Restaurant Employees Union, Local 57 v. Sage Hospitality Resources, LLC, 390 F.3d 206 (3rd Cir, 2004).
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The Common Council of the City of Madison do hereby ordain as follows:
Section 4.29 entitled “Proprietary Interest Protection Agreements” of the Madison General Ordinances is created to read as follows:
“4.29 PROPRIETARY INTEREST PROTECTION AGREEMENTS.
(1) Statement of Purpose. The City provides financial assistance to developers for the purpose of promoting economic development and job growth. Acting as a financier for a development puts the City at risk of financial loss where the success of the project impacts the City’s ability to recoup is financial assistance. Particularly, the success or failure of the project could be impacted by labor-management conflict, and such risk can be mitigated by requiring agreements between employers and employees that address common labor issues and pre...
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