Fiscal Note
The proposed resolution authorizes the City’s Economic Development Division to accept a $250,000 grant from the Wisconsin Economic Development Corporation (WEDC) and transfer the funds to Kleuter Building, LLC (the “Owner”) to help fund infrastructure costs associated with the reuse of the former Mautz Paint site, located on the 1000 block of East Washington Avenue. Adopted RES-18-00256 (File ID 50813) authorized applying for the Community Development Investment Grant. Economic Development Division’s 2018 Adopted Operating Budget will be amended to accept the funds as grant revenue and transfer the funds as a grant expense. No additional City appropriation is required. City costs associated with urban development of this area will be included in future operating and capital budgets subject to Common Council approval.
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Authorizing the City’s Economic Development Division to accept a grant and amend the 2018 Adopted Budget in the amount of $250,000 from the Wisconsin Economic Development Corporation (WEDC) Community Development Investment Grant program and authorizing a contract with WEDC to accept Community Development Investment Grant award and enter into a Memorandum of Understanding with Kleuter Building, LLC for the use of the funds.
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WHEREAS, City of Madison staff is working with Kleuter, LLC, the owners (the “Owners”) of the former Mautz Paint site, located on the 1000 block of East Washington Avenue, (the “Property”) on plans for the reuse of the Property; and,
WHEREAS, one of the barriers to reusing the Property is the need to fund building renovation, demolition, and new construction costs on the site; and,
WHEREAS, the Wisconsin Economic Development Corporation’s (“WEDC”) Community Development Investment Grant program provides funding to Wisconsin municipalities to fund costs needed to facilitate downtown community development, increased job opportunities, increased property values and/or leveraged private investment; and
WHEREAS, WEDC has awarded a Community Development Investment Grant in the amount of $250,000 to fund a portion of the Owner’s costs of building renovation, demolition, and new construction costs on the Property.
NOW THEREFORE, BE IT RESOLVED, that the City of Madison is authorized to accept a grant for $250,000 from WEDC’s Community Development Investment Grant Program (“Grant”) to fund a portion of the owner’s costs of building renovation, demolition, and new construction costs on the Property, amend the 2018 Adopted Budget and take the following actions related to the Grant:
1. Enter into a contract with WEDC to accept the Grant (the “Grant Contract”).
2. Enter into a Memorandum of Understanding with Kleuter, LLC (the “Owner”) describing how the City will transfer the funds to the Owner at the request of WEDC.
3. Enter into a contract with the Owner to establish the terms for how the Grant funds will be transferred to Owner, and assign the obligations in the Grant Contract to Owner.
BE IT FINALLY RESOLVED, that the Mayor and Clerk are hereby authorized to execute and record any documents related to this transaction in a form to be approved by the City Attorney.