Fiscal Note
The proposed resolution authorizes submittal of an application to the United States Economic Development Administration for $3 million in grant funding for the construction of the Madison Public Market, commits the City to providing matching funds, and authorizes the Mayor and City Clerk to enter into a contract with the EDA to accept the funding if it is awarded. The $3 million EDA grant, if awarded, will replace the federal funding source that was originally budgeted as New Market Tax Credits.
Title
Authorizing staff to apply for and accept Economic Development Administration (EDA) funding to support the construction of the Madison Public Market and if awarded, committing city matching funds for the construction of the Madison Public Market and draw down funding from TIF District 36.
Body
WHEREAS, the original funding source breakdown for the Madison Public Market Project is as follows:
$3 million in private fundraising
$3 million in New Market Tax Credits
$7 million in Tax Incremental Financing
WHEREAS, Federal New Market Tax Credits have become a potentially insufficient funding source for the Madison Public Market because tax credit pricing has decreased due to market changes; and,
WHEREAS, the Economic Development Administration’s "Addendum to the FY 2020 Public Works and Economic Adjustment Assistance Notice of Funding Opportunity (FY20 PWEAA NOFO) for the Economic Development Administration’s (EDA)’s Coronavirus Aid, Relief, and Economic Security Act (CARES Act) Recovery Assistance" is an alternative source of funding that provides advantageous and sufficient funding to replace New Market Tax Credits; and,
WHEREAS, the Madison Public Market total capital cost will be approximately $13 million; and,
WHEREAS, the City Staff in partnership with the Madison Public Market Foundation are preparing an application for $3 million,
NOW THEREFORE, BE IT RESOLVED, that City Staff is authorized to submit a grant application for $3,000,000 to the Economic Development Administration Grant Program for capital funding for the Madison Public Market; and,
NOW THEREFORE, BE IT RESOLVED, if awarded, the City of Madison commits matching funds for the Construction of the Madison Public Market and will draw the funding from Tax Incremental Finance District 36; and,
BE IT FINALLY RESOLVED, that if this grant is awarded, the Mayor and City Clerk are authorized to enter into a contract with EDA to accept the funds.