Fiscal Note
The proposed resolution authorizes amending Community Development Division’s Men’s Homeless Shelter capital project to accept $3 million from Dane to County and to purchase the property located at 2002 Zeier Road in the City of Madison for homeless shelter purposes. The estimated cost for the property acquisition is $2,600,000 plus an estimated $400,000 for environmental studies, closing costs, and architectural/engineering services to prepare plans for the renovation/conversion of the site to a permanent men’s homeless shelter. The property purchase will be funded by the $3 million already included in the 2021 Adopted Capital budget. This amendment will increase the total project budget to $6 million.
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SUBSTITUTE - Amending the 2021 Adopted Capital Budget for the Community Development Division’s Men’s Homeless Shelter capital project to accept and appropriate $3 million from Dane County and Aauthorizing the City’s execution of a Purchase and Sale Agreement between the City of Madison and BIP Enterprises, LLC, or their successors and assigns, for the purchase of the property located at 2002 Zeier Road in the City of Madison for homeless shelter purposes. (17th AD)
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WHEREAS, BIP Enterprises, LLC (“Seller”) is the owner of the property located at 2002 Zeier Road, which contains 2.67 acres improved with a 31,550 square foot retail building (“Property”), legally described as follows:
Lots 32 & 32, REGIONAL EAST PHASE II
WHEREAS, the City of Madison (“City”) desires to purchase the Property on which to establish, in partnership with Dane County, a facility that will provide shelter services to men experiencing homelessness; and
WHEREAS, the City Mayor directed City Real Estate Staff to pursue the purchase of one or more properties suitable for such use; and
WHEREAS, the City’s acquisition of the Property would allow the City, in collaboration with Dane County, to create a new space to serve individuals experiencing homelessness; and
WHEREAS, the Dane County Executive recommended to the Dane County Board the inclusion of up to $3 million in the County’s 2021 Capital Budget for use to support the purchase or development of property for a new overnight shelter serving men in Dane County who are experiencing homelessness; and
WHEREAS, the City adopted Resolution File ID 62725, Enactment No. RES-20-00776 on November 24, 2020 for the Community Development Division to plan and implement a homeless shelter project, including the acquisition of property for such purpose; and
WHEREAS the completion of architectural/engineering work is the first step toward converting the existing facility located on the Property to a permanent men’s homeless shelter; and
WHEREAS, the Seller agrees, by virtue of an executed Purchase and Sale Agreement (“Agreement”), to sell the Property to the City for a purchase price of $2,600,000, which was negotiated based upon an appraisal approved by the City’s Office of Real Estate Services.
NOW, THEREFORE, BE IT RESOLVED the Community Development Division’s 2021 Adopted Capital Budget is amended to accept $3,000,000 in county sources revenue and to appropriate the full $3,000,000 to the Men’s Homeless Shelter capital project.
BE IT FURTHER RESOLVED that the City’s Common Council hereby authorizes the City’s execution of a Purchase and Sale Agreement, as Buyer, for the purchase of the Property subject to the terms and conditions contained in the Agreement attached hereto.
BE IT FURTHER RESOLVED that the City’s Common Council authorizes City Engineering to expedite the procurement of architectural/engineering services to prepare plans for the renovation/conversion of the Property to a men’s homeless shelter using project funds.
BE IT FURTHER RESOLVED that the City will continue to collaborate with Dane County to establish a permanent men’s homeless shelter, including by pursuing and applying any funds, which may be authorized by the Dane County Board of Supervisors to help acquire and/or renovate the Property for this use.
BE IT FURTHER RESOLVED that the Mayor and Clerk are hereby authorized to sign, accept, and record any and all documents and legal instruments required to complete the transaction contemplated in this resolution, on a form and in a manner that has been approved by the City Attorney.