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File #: 58250    Version: 1 Name: Development Agreement with Stone House Development
Type: Resolution Status: Passed
File created: 11/13/2019 In control: Finance Department
On agenda: 11/19/2019 Final action: 12/3/2019
Enactment date: 12/6/2019 Enactment #: RES-19-00818
Title: Authorizing the Mayor and City Clerk to Execute the Development Agreement with Stone House Development, or its assigns, for the Purchase of the Podium and Air-Rights above the City’s Wilson Street Garage on Block 88 and Directing Follow-up Actions by the City as Described and Agreed to in the Development Agreement
Sponsors: Satya V. Rhodes-Conway, Michael E. Verveer, Keith Furman, Shiva Bidar
Attachments: 1. Development Agreement Stone House FINAL.pdf, 2. City-Stone House Negotiation Final Progress Report - 11-6-19.pdf
Fiscal Note

This resolution authorizes a development agreement with Stone House Development related to the private element of Block 88 to be constructed in the air right above the existing publicly-owned below-ground Wilson Street Garage and above ground retail space and parking facilities. The development agreement includes a $6 million payment for purchase of the air rights and the above-ground Podium structure consisting of ground floor retail space and two floors of above ground parking ($5 million paid at closing and $1 million paid fifteen years after the certificate of occupancy is issued for the private development).

A total of $50.4 million has been appropriated from Parking Utility Reserves ($23.4 million), TID 25 incremental revenues ($24 million), city general obligation borrowing ($2.3 million), and remaining Federal TIGER grant funds ($0.7 million), for the underground publicly-owned parking garage, ground floor retail space and two floors of above ground accessory parking. Of the $50.4 million allocated by the city for the project, $11 million is related to design and construction of the Podium structure and funded from Parking Utility reserves. As enacted by the Council (see RES-18-00403; Legistar 51484), the cost of the Podium structure will be repaid to the Parking Utility, with interest, through a combination of the proceeds from the purchase of the Podium and air rights included in the Block 88 development agreement to be approved in this resolution and ground lease payments included in the previously adopted development agreement for Block 105.

The draft development agreement requires that the city provide a $450,000 loan from the Affordable Housing Fund to support the affordable housing component of the development (20 apartments restricted to persons earning at or below 60% of the median income in Dane County). The development will also include 17 apartments restricted to persons earning at or below 80% of the median income in Dane Cou...

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