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File #: 74372    Version: 1 Name: 12576 - WHPC Acquisitions / Gardner Bakery TID 52 Loan
Type: Resolution Status: Passed
File created: 10/21/2022 In control: Economic Development Division
On agenda: 12/6/2022 Final action: 12/6/2022
Enactment date: 12/9/2022 Enactment #: RES-22-00817
Title: Authorizing the Mayor and City Clerk to execute a development agreement and authorizing a funding appropriation in the 2023 Capital Budget to fund a $2,350,000 Tax Incremental Finance Loan to WHPC Acquisitions, LLC or its assigns. (12th AD)
Sponsors: Satya V. Rhodes-Conway
Attachments: 1. Gardner TIF Report 10-24-22.pdf
Fiscal Note
This resolution would authorize a $2,350,000 loan to WHPC Acquisitions LLC or its assigns ("Developer"). Funding for this project requires approval of an upcoming amendment to the 2023 Executive Capital Budget. TIF funding is also contingent upon the creation of a new TID #52 (E. Washington and Stoughton Rd.) in 2023.

The Project consists of approximately 245 affordable apartment units, 4,000 square feet of commercial space and 282 parking stalls ("Project"). The TIF Loan would be repaid through incremental taxes generated by the Project and represents 55% of the present value of all incremental taxes anticipated from the Project over the proposed TID’s 27-year life.

While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 9 years, the Developer is required to guaranty a minimum payment if sufficient future tax increment is not available.

The increment guarantee is secured by a subordinated mortgage on the property. The TIF Loan also requires that Developer be prohibited from selling or transferring the Property prior to repayment of the TIF Loan. If Developer sells or transfers the Property to a tax-exempt entity, Buyer shall pay an annual payment in lieu of taxes (PILOT) in the amount of the property tax paid as of the date of sale, frozen, until 2050.
Title
Authorizing the Mayor and City Clerk to execute a development agreement and authorizing a funding appropriation in the 2023 Capital Budget to fund a $2,350,000 Tax Incremental Finance Loan to WHPC Acquisitions, LLC or its assigns. (12th AD)
Body
WHEREAS the City of Madison is in the process of creating a new TID #52 (East Washington and Stoughton Rd) during 2023 and;

WHEREAS the intent and purpose of the Project Plan, among other things, is to eliminate blighting conditions and encourage development of a wide range of commercial and housing options and attract and retain business and employment in the City of...

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