Fiscal Note
The proposed resolution authorizes submitting for a $250,000 grant from the Wisconsin Economic Development Corporation (WEDC) to fund a portion of the Owner’s costs of building demolition, environmental remediation, and new construction costs on the former Westgate Mall property. If awarded, the Economic Development Division’s 2020 Operating Budget will be amended in the amount of the grant award and the award will be deposited into the Grants fund. No additional City appropriation is required.
Title
SUBSTITUTE - Authorizing the City’s Economic Development Division to submit for a $250,000 grant, and if awarded, accept a grant for $250,000 from the Wisconsin Economic Development Corporation (WEDC) Idle Sites Redevelopment Grant program and, if awarded, amending the 2020 Adopted Operating Budget for Economic Development Division-Office of Business Resources’ purchased services and authorizing the Mayor and City Clerk to enter into a contract with WEDC to accept Idle Sites Redevelopment Grant award and enter into a Memorandum of Understanding with JT Klein Company, Inc. for use of the funds. (10th AD)
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WHEREAS, City of Madison staff is working with JT Klein Company, Inc., the owner (the “Owner”) of the former Westgate Mall property, located at 160 Westgate Mall (the “Property”) on plans for the redevelopment and reuse of the Property; and,
WHEREAS, barriers to the redevelopment and reuse of the Westgate Mall property include the need to fund substantial demolition and environmental remediation costs on the site; and,
WHEREAS, the Wisconsin Economic Development Corporation’s (“WEDC”) Idle Sites Redevelopment Grant program provides funding to Wisconsin municipalities to fund costs needed to facilitate reinvestment in former commercial or industrial property that is currently idle or underutilized; and
WHEREAS, WEDC may award an Idle Sites Redevelopment Grant in the amount of $250,000 to fund a portion of the Owner’s costs of building demolition, environmental remediation, and new construction costs on the Property.
NOW THEREFORE, BE IT RESOLVED, that the City of Madison is authorized to submit and, if awarded, accept a grant for $250,000 from WEDC’s Idle Sites Redevelopment Grant Program (“Grant”) to fund a portion of the Owner’s costs of building demolition, environmental remediation, and new construction on the former Westgate Mall property 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 (the “MOU”) with the Owner describing how the City will transfer the funds to the Owner at the request of WEDC.
3. Enter into a contract, on substantially the same terms as the MOU, 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 FURTHER RESOLVED, that the 2020 Adopted Operating Budget for Economic Development Division-Office of Business Resources’ purchased services is authorized to be amended in the amount of the grant funds awarded, and
BE IT FINALLY RESOLVED, that the Mayor and Clerk are hereby authorized to execute and record the above documents and any other documents related to this transaction in a form to be approved by the City Attorney.