Here’s the document that shows the plan for the TIF district.
And here’s some of the highlights.
– Check out the crazy map. Interesting gerrymandering. Can you believe that University Square and East Washington are in the same TIF district via the Edgewater. Also, there are three interesting holes in the map where the areas are excluded.
– They claim that the plan complies with the Comprehensive Plan, some of us would beg to differ.
– These are the proposed public improvements we will be getting:
– – Gilman Street reconstruction $357,000
– – Carroll Street reconstruction $417,000
– – Undergrounding $650,000
– – – -Total Public Improvements $1,424,000
– Revitalization efforts, $16M for the Edgewater.
– The Amendment contemplates the creation of a Small-Cap TIF Loan program. This program would help
those households interested in rehabilitating existing rental property by converting units that may have
housed large numbers of tenants to owner-occupied property of one to three units. The Common Council
authorized $300,000 per year over 5 years in the 2010 Capital Improvements Plan (CIP). The estimated cost of this activity is $1,500,000.
– This is just offensive. They will do anything to not have to finance affordable housing.
City of Madison TIF Policy requires that where practicable, ten percent (10%) of the District’s tax increments be set aside to assist affordable housing. For practical purposes, this is estimated as 10% of the net present value of tax increments anticipated over the remaining life of the District, assuming these funds are made available initially as general obligation borrowing. The Amendment is not a determinant of where, how or when such projects might be developed.
The estimated cost of this activity is $0.
NOTE: The First Amendment to TID #32, approved in 2006, allocated $2.2 million in the project plan. No
further amount is necessary
– It looks like they still plan to close the district by 2019. But it also says “The implementation of TIF-funded infrastructure improvements is anticipated to occur during the years 2003-2025.”
– “The total project costs for the Amendment are estimated at approximately $18,924,000. Of this total,
approximately $78,000 will be assessable to property owners and $18,846,000 of eligible costs may be
supported by TIF.” And not go to the underlying taxing jurisdictions.
– “The City of Madison’s decision to authorize expenditures to pay for eligible TIF project costs will be
contingent upon development actually occurring or committed to occur. Per TIF Law, the City shall make
all expenditures within 22 years of the District’s creation date (July 1, 2003). Therefore, all expenditures
must be made before July 1, 2025. The maximum life by which the District may collect tax increments to
pay for project expenditures is 27 years or until 2030. Since the vast majority of the project cost is
financed with long-term debt, borrowing would be undertaken only when sufficient development actually
occurs to support each borrowing segment and the expenditure of such funds.”
– Base value as of January 1, 2010 of the amended area is assessed at $146,157,300.
– “The base value of the existing District, including the First Amendment from 2006, was certified by State of Wisconsin Department of Revenue at an equalized assessed value of $244,620,800. Therefore, the recalculated base value of the combined existing District and the Amendment is estimated at $390,778,100.”
– “The forecasted $133,000,000 of incremental growth is predicated upon $44,800,000 of incremental value of the Edgewater Hotel Redevelopment Project and $88,200,000 of appreciation within the Amendment until 2030.”
– The total estimated cost of public improvements and loans to private development is $18,846,000. The estimated $146,157,300 incremental value of the Amendment could generate approximately $900,000 per year of tax increment, thus supporting approximately $10,832,000 of TIF Project Costs. The existing TID 32 (original and first amendment) is currently generating approximately $3,000,000 million of tax increment, of which approximately $1,500,000 is committed to recovering $20,306,000 of project cost. An estimated $1,500,000 of residual tax increment in the existing TID 32 is available to recover the additional $8,014,000 of project cost within the Amendment.
There are $5,182,000 of financing costs associated with these public improvements and loans to private development, therein for a total of $24,028,000 of TIF Project Costs associated with this Amendment. These costs are in addition to the actual Project Costs associated with the existing Tax Incremental District #32.
– This is the description of the Edgewater:
• A remodeling of the original Edgewater Hotel and an addition of an additional story (107 units);
• Construction of a new hotel addition (83 units);
• An additional 8-10 residential dwelling units;
• 235 stall parking garage;
• A new plaza that is accessible to the public with overviews of and access to the Mendota lakefront.The total finished value of this redevelopment project is projected to be $44,800,000 at completion.
– These are the city goals we are furthering:
City of Madison Comprehensive Plan: Volume II: Page 2-114
Downtown Residential Sub-Districts (Landgon (h))
• Recommended Land Uses
o Mixed-use buildings with first floor retail, service, dining, entertainment, offices and upper floor residential
o Multi-unit residential (16 to 60+ dwelling units per net acre) with dwelling unit types and densities defined in City-adopted detailed neighborhood or special area plans.
o Public and private open spaceCity of Madison Comprehensive Plan: Volume II: Pages 5-11 and 5-16
Economic Development (Objective 9)
• Redevelop appropriate underutilized, obsolete, abandoned or contaminated sites for commercial and industrial uses.Economic Development (Objective 16)
• Enhance the economic vitality of Downtown Madison by retaining, expanding and locating private enterprises.
– These are the TIF goals we are furthering:
• Goal 1: Support Economic Development (Objective 1) – Job creation in “high need” areas (NOTE: The blight finding of 54% in the amended TID area, along with the existing deteriorating hotel and obsolete building stock illustrate this fact.)
• Goal 2: Support Neighborhood Revitalization
o Objective 2 – Historic Revitalization (NOTE: The renovation of the 1940’s Edgewater Hotel meets this objective.)
o Strategy 1 – Improve Public Infrastructure (NOTE: Gorham and Carroll St reconstruction.)
