Madison, WI Header
File #: 67092    Version: 1 Name: 11800 JDS - 2nd Amendment Beitler / Mortenson
Type: Resolution Status: Passed
File created: 8/24/2021 In control: Economic Development Division
On agenda: 10/5/2021 Final action: 10/5/2021
Enactment date: 10/12/2021 Enactment #: RES-21-00673
Title: Authorizing the City’s execution of a Second Amendment to Development Agreement, together with other associated agreements and documents, between the City, Beitler Real Estate Services, LLC and Mortenson Development, Inc. pertaining to the property located at 223 S. Pinckney Street, which is part of the project commonly known as the Judge Doyle Square Development Project. (4th A.D.)
Sponsors: Michael E. Verveer, Satya V. Rhodes-Conway, Yannette Figueroa Cole
Attachments: 1. Attachment 1 JDS Purchase AgreementFINAL.pdf, 2. Attachment 2 Parking Agreement, 3. Attachment 3 Room Block Agreement FINAL.pdf, 4. Block 105 - Mortenson Presentation.pdf, 5. Block 105 - Staff Presentation.pdf, 6. 09.22.21 TC Registration Report.pdf
Fiscal Note

This resolution authorizes a second amendment to the development agreement related to the hotel development element of the Judge Doyle project. The fiscal effect of the second amendment is to remove the previous ground lease for the property and replace it with a purchase and sale agreement. The purchase price is $4,020,000, less closing costs, which will be deposited in the Parking Utility enterprise fund.

On June 5, 2018, the Common Council adopted RES-18-00403, File ID #51484, which authorized appropriations for the construction of the above ground Podium component of the building on Block 88 as part of the Judge Doyle development. The Podium component, which included commercial space and two floors of above ground parking, was built as part of the construction of the underground public parking project (now known as the Wilson Street Garage) which replaced the above ground Government East parking ramp on Block 105. The $11 million cost of the podium was financed from Parking Utility enterprise fund reserves. Under RES-18-00403, revenues from the ground lease to the developer of Block 105 were to be used to repay the Parking Utility enterprise fund for the cost of the podium, with interest.

On December 3, 2019, the Common Council adopted RES-19-00818, File ID #58250, which authorized 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 Podium). The development agreement included a $6 million payment for purchase of the air rights and the Podium ($5 million paid at closing and $1 million paid fifteen years after the certificate of occupancy is issued for the private development). The initial $5 million payment was deposited in the Parking Utility enterprise fund, as will the $1 million payment to be made in 2036 (15 years after the certificat...

Click here for full text