Fiscal Note
The proposed resolution authorizes a development agreement with Royster Corners LLC to assist with the completion of Phase I of the Royster Corners development. If adopted, the resolution will amend the 2017 Adopted Capital Budget to appropriate $820,000 in GO Borrowing for a developer loan to Royster Corners LLC. The loan will be pay back by tax increment generated in future years. The TIF Loan represents approximately 25% of the present value of tax increments generated by the project, falling within the limits of the 55% Gateway in TIF Policy. Tax increments estimated to be generated by the Project are forecasted to recover the TIF Loan in six (6) years.
Title
Authorizing the Mayor and City Clerk to execute a development agreement to fund a $820,000 Tax Incremental Finance Loan to Royster Corners, LLC or its assigns to assist in the development of the Project in Phase I of the Royster Corners development in TID #44 (Royster Clark) and amend the 2017 Capital Budget to authorize the expenditure.
Body
WHEREAS on September 23, 2013 the City of Madison adopted RES-13-00876, File No. 31246 approving the creation of a Project Plan and Boundary for Tax Incremental District (TID) #44 (Royster Clark) (“District”); and
WHEREAS the District is bounded by whole parcels of real property along Cottage Grove Road starting at Monona Drive, going east past US Hwy 51 to Flora Street; and
WHEREAS, Royster Corners, LLC or its assigns (“Developer”) proposes to construct approximately 86 apartment units comprising 101,300 square feet, 146 underground and surface parking stalls, 16,600 square feet of commercial at an estimated development cost of approximately $18,021,000 (“Project”) on Phase I of the Royster Commons development generally located at the corner of Cottage Grove Road and Dempsey Road (“Property”); and
WHEREAS, TIF staff has conducted an analysis of the Project as shown in the attached Report; and
WHEREAS, said TIF assistance represents approximatel...
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