So, what can be learned from reading the TIF Application for the Edgewater? And what will the public be getting? The most interesting parts are the last parts where I have included complete quotes from the document regarding the public spaces, but here’s the highlights.
– Edgewater (666 Wisconsin Avenue) is being purchased for $5.5M
– The National Guardian Life land is being purchased for $3M
– They plan to lease, not purchase the Wisconsin Avenue Right of Way
– Total land in the project 87,990 square feet
– The Hotel will be 289,468 square feet with 228 rooms, that’s $396,4991 per room or $312/sq foot if you use the total project costs of $90,400,000
– They will be providing 364 parking stalls, but there are more than 420 stalls in the valet configuration
– It’ll cost $1.4M in demolition costs
– The parking structure will cost $8,450,000
– They hotel is expected to have a value of $86M upon completion.
– They expect to have $52.5M in loans
– They have $33.5M in Equity (excluding the developer fee)
– Their formal TIF request was for only $4.4M
– They expect to have operating revenues of $16M – 19.4M (hotel), $6 – 6.7M (restaurants), $1.5 – 1.6M (Spa) per year in the first 5 years of operations for a total of $23.5M – 27.8M per year
– They expect expenses to equal $9.7 – 12M (hotel), $4.5 – 5.1 (restaurants), $1 – 1.2 (spa) per year in the first 5 years of operations plus pay $1M in property taxes and $200,000 in insurance for $16.5 – 19.7M in total expenses per year.
– Net operating income would be $6.9 – 8M
– The borrower is Landmark X, LLC
– The developer is evaluating whether to establish a franchise agreement for the hotel or be independent, a final decision won’t be made until 2010
– Landmark X, LLC is expecting to remain the owner
– They have 300 feet of frontage on Lake Monona
– Public improvements are expected to cost $34.8M, $18M would be paid by the developer, but they want $16.8 from the City to pay for the improvements or 48% of the costs
– The developer will be responsible for ongoing maintenance and operation of the public spaces (i.e. have control) for which they expect to spend $10M over the life of the project.
– They claim the total investment is $109,000 but the economic impact during construction (direct, indirect/induced) is $115 – 128M
– They claim that there will be 900 – 1000 jobs from construction
– For Ongoing Economonic Impacts (Direct, Indirect/Induced) compared to what is there:
– – They claim that there will be $54M annual economic output/spending including $25M on site.
– – They claim that the city will get $33M or more in taxes (however, their expenses statements say they are only paying $1M)
– – They claims there will be 525 – 550 permanent jobs
– They think that public improvements in the TID will be spent on enhanced streetscape/lighting, road repairs and a mechanism to invest in historic properties
– They expect the project to be “flanked by a series of restaurants and cafes”
– They call the public space the “Terrace at Mansion Hill”
– Sustainable practices they expect to employ are: Construction, Demolition & Waste Management Practices, Sustainable Site Practices (access to alternate transportation, bike access, etc), Repair and Replacement of Exterior Facade, Energy Efficient Fixtures and Appliances, Green Roof/Urban Open Space, Stormwater retention plan/improvements (at UDC they said they hold it then put in the lake instead of letting it run straight into the lake), Removal of portions of existing building that cantilever over the shoreline, setback of proposed expansion, on-going operations/”green” housekeeping program
– There is 36,000 square feet of open space in a “green roof” configuration.
– The $16.2 of public improvements includes building parking beyond what is needed for the hotel and the infrastructure to support the public spaces
– $4.4M is 50% of the tax increment generated by the project, so if they are getting more than that they need an exception to the policy
– The city would spent $12.4M on public works
– The “grand stair” will cost $3.1M (includes elevators and sky walk as well a facade improvements)
– Waterfront improvements are only $.9M
– The Mansion Hill Terrace & Garden will cost $7.9M (includes vehicle area and public restrooms)
– Parking will cost $8.5M
– “The public shall have the right to use the Public Improvements for any lawful purpose during the Hours of Operations”. Hours of Operation: 6 am to 11 pm, 365 days per year.
– “Operating policies and procedures will be established for the Public Improvements to address activities that would be considered a nuisance or disruptive to the on-going operations of the hotel, restaurants or other businesses associated with the Project.”
– “The use provisions will address the public rights to bring food and beverages for their own consumption and to recreate in the public areas during normal Hours of Operation”
– “The Management Agreement will establish the Developer’s rights to host Events and utilize Outdoor Seating”
– “The Developer shall the the right to secure the area pursuant to the terms and conditions of the Management Agreement and the regulations of the Madison General Ordinances”
– “The Developer shall have the right to place and control Outdoor Seating areas associated with the restaurant and function spaces”
– “The Developer shall have the exclusive right to sell goods and/or services in the public areas subject to the rules and regulations of the Madison General Ordinances”
– “The Developer shall have the exclusive right to host public and/or private events in the areas designated as “Event Areas” on figure 5.1 (Event Operations). Continuous public access will be maintained across the terrace, across the skywalk to the elevators connecting the terrace to the waterfront (e.g. ADA access) and on the grand stair connecting Langdon Street to the waterfront”
– “The operation of Major Events, to be defined as those with more than two hundred fifty (250) persons shall be subject to the provisions of the Management Agreement and the Madison General Ordinances. The Developer shall have the right to secure and control the Events Area and Public Walkway as shown on figure 5.1 during period of Major Events provided that continuous access is maintained to the waterfront and lakefront terrace via the Grand Stair”
A FEW RANDOM COMMENTS/QUESTIONS
– Some of the numbers had footnotes and asterisks but I didn’t see the notes that accompany them.
– I’d like to see the direct economic impacts, without the indirect and induced projections. How many jobs without any multipliers applied.
– I’d like to see details to the sustainable practices – they sound like a bunch of meaningless buzzwords and seem kind of weak to me
– How much of the 36,000 square feet of green roof is public space and how much is private space?
– Are they going to charge for the excess parking? Can the city charge for it?
– The numbers are slightly inconsistent throughout the document depending upon how they are grouped.
– When do we get to see the details of the Management Agreement that give many of the rights to the public spaces?
– Lets be clear, during Major Events (more than 250 people expected to attend), the terrace will be off limits, but you can use the stair to the lake. How many time per year will this happen and how long can they close off the area to get ready for the event?
– What are the developer fees for the project?
