City of Madison, Wisconsin | Legislative Information Center
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File #: 43258    Version: 1 Name: Authorizing the City to enter into an agreement with the Madison Metropolitan School District to guarantee MMSD’s increment share in TID #25 in an amount up to $9,274,000.
Type: Resolution Status: Passed
File created: 6/2/2016 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 6/21/2016 Final action: 6/21/2016
Enactment date: 6/23/2016 Enactment #: RES-16-00463
Title: Authorizing the City to enter into an agreement with the Madison Metropolitan School District to guarantee MMSD’s increment share in TID #25 in an amount up to $9,274,000
Sponsors: Paul R. Soglin
Fiscal Note
This resolution authorizes the Mayor and City Clerk to enter into an agreement with the Madison Metropolitan School District (MMSD) to guarantee its share of TID 25 at closure, up to a maximum of $9,274,000. This amount represents MMSD's share of the residual revenues in TID 25 if it had been closed as of December 31, 2014. If this guarantee is exercised, it will require an appropriation at a future date from the Capital Projects Fund. It is anticipated that if the guarantee is necessary, the source of funds would be a portion of the City's share of the residual revenues in TID 25 at closure.

As of December 31, 2014, TID 25 had residual revenues of $19.5 million. If it remains open through its maximum statutory life (2022/2023), those residual revenues will grow to $56 million. It is anticipated that any project costs, including construction of an underground ramp to replace the Government East parking structure, can be accomodated within this growth in incremental revenues and maintain the $19.5 million balance upon which this guarantee has been established.

Title
Authorizing the City to enter into an agreement with the Madison Metropolitan School District to guarantee MMSD’s increment share in TID #25 in an amount up to $9,274,000
Body
WHEREAS, Tax Incremental Finance District (TID) #25 was opened in 1995 and is required to close by law in 2023, with the authority to collect an additional year of tax increment at the City’s discretion for purposes of investments in affordable housing; and

WHEREAS, TID #25 has remained open to fulfill lease agreements and repay lease-revenue bonds issued for economic development projects in the district; and

WHEREAS, TID #25 has a surplus of funds in an amount of $19,481,314 as of December 31, 2014 (the “Surplus Funds”); and

WHEREAS, the City of Madison intends to use the Surplus Funds in order to finance a parking structure as part of the Judge Doyle Square development on Block 88, subject to a project ...

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