Fiscal Note
The proposed resolution approves the overall site and phasing plans, as well as an initial analysis of the amount and type of affordable housing opportunities to be constructed on the site. It further authorizes CDA to enter into additional contracts with the lead development partner (Alexander Company) and other architecture, engineering and construction firms to design, finance, bid, and construct the components detailed in the Master Plan, subject to additional approvals by the Common Council and CDA Board of Commissioners.
The cost of housing component of each redevelopment phase is highly dependent on the number of units, level of affordability, and subsidy program selected. The Master Plan suggests that Phase 1 of redevelopment may include approximately 250 housing units in two buildings (connected by shared underground parking) and financed by 4% Section 42 tax credits. This number of units is supported by the adopted South Madison Plan and preliminary financial analysis based on the site being located in a Qualified Census Tract. Phase 1 also includes new Fire Department and Public Health Madison & Dane County (PHMDC) facilities.
The proposed TID 51 Project Plan includes $15.0 million in funding for CDA activities including redevelopment of the South Transfer Point, development at Village on Park, and land banking. The 2024 Adopted Capital Budget for CDA Redevelopment’s South Madison Redevelopment project (Munis project 14431) included $2.0 million of TID increment donated to TID 51 for predevelopment work. The 2025 Adopted Capital Budget includes $4.0 million of TID increment donated to TID 51 in 2025 for additional predevelopment work and the estimated Phase 1 gap and $3.0 million of TID increment donated to TID 51 in 2026 for the estimated Phase 2 gap. To date, the CDA's South Madison Redevelopment capital project has $9.0 million of funding authorized by the Common Council.
The Fire Department's 2025 Adopted Capital Budget includes $3.47 million of GF GO Borrowing in 2025 for the Fire Station 6 - W Badger Rd project (Munis project 17040). $4.4 million for the project was included in the 2021 and 2022 Adopted Capital Budgets. To date, the project has $7.87 million of funding authorized. PHMDC's 2025 Adopted Capital Budget includes $15.0 million of GF GO Borrowing in 2025 for the South Madison Public Health Clinic project (Munis project 14878). Phase 2 of the Master Plan includes relocating the South District Police Station and constructing a new property and evidence facility on the site of the former Town of Madison Hall. The Police Department's 2025 Adopted CIP includes funding for this project (Munis project 17044): $2.0 million of GF GO Borrowing in 2025, and $38.8 million in GF GO Borrowing and $2.7 million in federal funding in 2027.
No additional City appropriation required with approval of the proposed resolution.
Title
Adopting the Redevelopment Master Plan and Phasing and Affordability Plan for City-owned properties in the Park and Badger Area, 802, 810 and 818 West Badger Road and 825 Hughes Place. (District 14)
Body
WHEREAS, the City acquired commercial properties at 810 and 818 Badger Road via the Land Banking program, which when combined with existing City-owned properties at 802 West Badger Road (decommissioned Metro South Transfer Point) and 825 Hughes Place (MPD South Station), form a contiguous 4-acre redevelopment parcel (the “Park and Badger Area”) suitable for high-quality, urban infill development on a key gateway intersection, consistent with the Guiding Principles of the South Madison Plan and the Comprehensive Plan more broadly; and
WHEREAS, on October 17, 2023, the Common Council designated the CDA as the Master Developer of the City-owned properties within the Park and Badger Area (RES-23-00652, File ID 80082); and
WHEREAS, in its role as Master Developer and in order to apply to the Wisconsin Housing and Economic Development Authority (WHEDA) for tax credits, the CDA is authorized to form development partnerships, create one or more not-for-profit LLCs, and run additional RFQ/RFP processes to hire the professional expertise needed in order to timely file tax credit applications, involving, but not limited to, co-development partners; legal counsel; architectural, engineering, and construction management firms; property management; and financial consultants; and
WHEREAS, the CDA engaged a developer-partner team headed by The Alexander Company to perform professional services related to the preparation of a master plan for development of new affordable housing, public health offices, lab and clinic spaces, fire station, and related public/private amenities; leadership in the planning, application and project development process; and expertise in leveraging financial tools such as Low Income Housing Tax Credits (LIHTC); and
WHEREAS, City staff and development partners have created and publicly presented preliminary redevelopment concepts for the Park and Badger Area at two neighborhood meetings, which include the replacement of nearby Fire Station #6 and the Madison Dane County Public Health clinic, and approximately 350 total housing units in two phases as depicted and further described in the attached Exhibit A; and
WHEREAS, pursuant to a future Cooperation and Development Agreement to be authorized by the Common Council, the CDA will create and control one or more limited liability corporations (LLCs) though which it will retain ownership of all the land under the Park and Badger Area, ensuring long-term housing affordability, generating a reliable source of long-term operating income for CDA Redevelopment and/or Housing Operations, and improving the delivery of critical public health and fire protection services to the South Madison community.
NOW THEREFORE BE IT RESOLVED that the Common Council hereby approves the Redevelopment Master Plan and Phasing and Affordability Plan for the Park and Badger Area.
BE IT FURTHER RESOLVED that under said future Cooperation and Development Agreement and subject to the allocation of sufficient City budget authority in 2025 and subsequent years, the City shall sell or transfer property to CDA, provide necessary Tax Incremental Financing (TIF) and other general obligation (GO) sources of funding, and finance, construct, own and/or operate both a Public Health Madison Dane County clinic and a condominium for the new Fire Station #6, each to be located within the Park and Badger Area.
BE IT FURTHER RESOLVED, that subject to adopted City capital budget authority in 2025 and subsequent years, the CDA is hereby authorized to negotiate and enter into additional contracts for the redevelopment of the City-owned Park and Badger Area properties between the Alexander Company and/or other qualified contractors, the composition of which partnership(s) shall be determined subject to City purchasing processes administered by the CDA and/or Engineering Division.
BE IT FINALLY RESOLVED, that prior to commencing construction on any component of the Redevelopment Master Plan, the Common Council and CDA Board of Commissioners shall each approve and execute a Cooperation and Development Agreement more specifically enumerating the roles and responsibilities of each party with respect to the redevelopment of the Park and Badger Area.