Fiscal Note
This resolution authorizes an agreement with the City of Fitchburg regarding apportionment of the Town of Madison's assets and liabilities upon final attachment of the Town on October 31, 2022. The agreement also calls for the payment of $607,500 to Fitchburg for Fitchburg to not exercise its option to acquire the Town Hall property. This amount equates to Fitchburg’s 25% share of the value of the property ($2,430,000). Because the rear portion of the property contains a Town park, which would no longer be in service if Fitchburg took ownership, these funds will be paid for from the Park-Land Impact Fee Fund since they will be used to acquire park land. The property will eventually be subdivided to clearly delineate the park portion of the property. Future sales of all or a portion of this property within five years may require a payment to Fitchburg of 25% of the increase in the value of the property. Any such payment will be addressed at the time of any such sale. This resolution amends the 2022 Adopted Parks Division Capital Budget to appropriate $607,500 from park impact fees to the Land Acquisition program to fund the acquisition of the Town Hall property.
It is unknown at this time the final amount of assets and liabilities of the town. This amount will be determined through the Town's final audit, which will be available in the spring of 2023. At that time, the two cities will use the provisions of this agreement to divide the assets and liabilities of the town. Assets include both physical assets (e.g., improvements, equipment), most of which will be divided based on location, as well as liquid assets (e.g., remaining cash balances) which will be divided based on the 75% to Madison / 25% to Fitchburg provision in the agreement, or physical location (e.g., the town's tax increment district is in the area that will be attached to Fitchburg). Liabilities (e.g., outstanding debt) will be divided in a similar manner.
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Approving ...
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