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File #: 43551    Version: 1 Name: 10069 - PSA for 2340 Winnebago St; Red Caboose
Type: Resolution Status: Passed
File created: 6/29/2016 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 7/19/2016 Final action: 7/19/2016
Enactment date: 7/22/2016 Enactment #: RES-16-00534
Title: Authorizing the execution of a Purchase and Sale Agreement between the City of Madison and Red Caboose Child Care Center, Inc. for the purchase of the building and land located at 2340 Winnebago Street and use of the net proceeds to pay down TID #37 debt.
Sponsors: Marsha A. Rummel, Denise DeMarb
Fiscal Note
This resolution authorizes a Purchase and Sale Agreement between the City of Madison and Red Caboose Day Care Center, Inc. for the acquisition of the City-owned property located at 2340 Winnebago Street for $825,000. Estimated costs for this transaction include the following: payment of $100,000 to Gorman & Company pertaining to sunk costs that was approved by Resolution file number 41824 on March 15, 2016; and $24,750 in commissions to Key Commercial; and roughly $6000 in title and closing costs. Proceeds from the sale of the property will be applied to TID 37: Union Corners.
Title
Authorizing the execution of a Purchase and Sale Agreement between the City of Madison and Red Caboose Child Care Center, Inc. for the purchase of the building and land located at 2340 Winnebago Street and use of the net proceeds to pay down TID #37 debt.
Body
WHEREAS, on October 30, 2013 the City of Madison (the “City”) executed a Purchase and Sale Agreement (the “PSA”) with Gorman & Company, Inc. (“Gorman”) for the conveyance and redevelopment of properties owned by the City located at 2504, 2507 and 2340 Winnebago Street, Madison, WI (collectively, the “Gorman Property”) for a mixed-use redevelopment project. Under the terms of the PSA, Gorman was required to develop the Gorman Property in four phases.

WHEREAS, the First Amendment to the PSA, which among other items, provided that the number of phases be increased from four to six. In the Second Amendment to the PSA, only Phases 1 through 4 were acquired by Gorman, and an option to purchase Phases 5 & 6 independently was granted to Gorman.

WHEREAS, the City and Gorman also entered into a Memorandum of Option to Purchase (the “Memorandum”) which was recorded in the Office of the Dane County Register of Deeds on August 17, 2015 as document No. 5176971, and which Memorandum provides public notice of the Option Agreement.

WHEREAS, the City and Gorman came to a mutual agreement to terminate the Gorman’s rights...

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