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File #: 42096    Version: 1 Name: Madison Dairy Affordable Project TIF Loan
Type: Resolution Status: Passed
File created: 3/9/2016 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 3/15/2016 Final action: 3/29/2016
Enactment date: 4/4/2016 Enactment #: RES-16-00238
Title: Authorizing the Mayor and City Clerk to execute a development agreement to fund a $565,000 Tax Incremental Finance Loan to assist in the development of an affordable housing redevelopment project located at the former Madison Dairy property in the proposed Project Plan and Boundary Amendment area of TID #36 (Capitol Gateway).
Sponsors: Paul R. Soglin, Ledell Zellers
Attachments: 1. Madison Dairy TIF Report 3-15-16.pdf
Fiscal Note
This resolution would authorize a $565,000 loan to SHD, Inc. ("Borrower") for the redevelopment of the former Madison Dairy property located at the north 1000 Block of East Washington Avenue. The property is located outside the TID 36 boundary and the TID has expended all $22 million of TIF funds authorized in the original Project Plan, requiring an amended TID Boundary and Project Plan.

TIF loan disbursal shall be contingent upon the approval of a TID 36 Project Plan and Boundary amendment by the Common Council and TIF Joint Review Board. Certification of the TID #36 amendment by the Wisconsin Department of Revenue is anticipated during the first quarter of 2017.

The $565,000 TIF Loan, out of a total of $3,450,000 disbursed to Borrower, would partially fund the construction of approximately 65 apartment units (55 affordable and 10 market units) and approximately 50 structured parking stalls ("Project").

A separate companion resolution, introduced to the Common Council on March 15, 2016 would authorize $2,885,000 of TIF Loan assistance to Borrower to construct 140 market-rate apartments, 61,000 gross square feet of office, 18,000 gross square feet of retail space and approximately 362 structured parking stalls.

Both TIF Loans would be repaid through incremental taxes generated by the Project and guaranteed by principals of the Borrower.

The overall TIF assistance to both projects, totaling $3,450,000, represents 67% of the present value of all incremental taxes anticipated from the entire development throughout the remaining 16-year life of TID #36 and its proposed boundary amendment. This figure exceeds the 55% Gateway established in TIF Policy. As required by TIF Policy, TIF staff met with the Board of Estimates on January 25, 2016 that authorized an exception to the 55% Gateway.

Upon completion of the Project, the City will review the Developer’s audit of project costs and financing, to the City’s satisfaction, or conduct its own audit. In ...

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