Fiscal Note
Legistar File 70640 enacted April 25, 2022 authorized the City to engage in redevelopment activities in support of the Centro Hispano redevelopment project. This support includes transferring several City-owned lots to Centro for little to no consideration, purchasing Centro's existing property, and leasing the existing property back to Centro until its new facility is ready for occupancy. These efforts are achieved through three separate resolutions being considered simultaneously. Legistar File 74311 authorizes the sale of City-owned properties to Centro. Legistar File 74309 authorizes $2.2m from Economic Development's Land Banking capital program to purchase Centro's existing property ($1.7m) and for any related costs ($500k). Legistar File 74312 leases the existing property back to Centro for little to no consideration.
Title
Authorizing the City’s execution of a lease agreement between the City of Madison and Centro Hispano, Inc. for a building located at 810 W. Badger Road. (14th AD)
Body
WHEREAS, Centro Hispano of Dane County (“Centro”) is a leading social service provider for the Latinx community of Dane County, providing a range of programs for youth and families, workforce and career training services, and numerous community events and workshops; and
WHEREAS, City staff have worked closely with Centro to secure a site that will provide Centro sufficient space to expand its programs through the construction of an estimated $20 million, 25,000 square foot facility (the “Centro Redevelopment Project”), replacing its existing space at 810 W. Badger Road (“Property”); and
WHEREAS, in support of the Centro Redevelopment Project, the City intends to transfer fee simple interest in several City-owned lots to Centro for little to no consideration, provide construction capital for the Centro Redevelopment Project through its purchase of the Property at appraised market value for future redevelopment purposes, and lease the Property back to Centro at no cost until such time as its new facility is ready for occupancy; and
WHEREAS, the terms of a lease have been negotiated between the City’s Office of Real Estate Services and Centro, and the City and Centro desire to enter into the new lease agreement; and
WHEREAS, the Common Council previously authorized City staff to proceed with reasonable and necessary due diligence and real estate activities supporting the Centro Redevelopment Project (Enactment No. RES-22-00311, File I.D. No. 70640).
NOW, THEREFORE, BE IT RESOLVED that the Mayor and City Clerk are authorized to execute a lease agreement with Centro (“Lease”), substantially, though not exclusively, on the terms and conditions detailed in the Lease, attached to this resolution as Exhibit - Lease.
BE IT FURTHER RESOLVED that the City’s Common Council hereby authorizes the Mayor and City Clerk to execute, deliver and record the Lease and take any further action required to accomplish the purpose of this resolution in a form approved by the City Attorney.