On Monday, the Finance Committee will go into closed session to determine if they will accept the final negotiations of the staff team. Here’s the information that is avaialble to the public.
The final report is here. There were six negotiating session and updates to the Finance Committee along the way, mostly in closed session. Here are the final terms they are being asked to approve. If you have input you can email allalders@cityofmadison.com and mayor@cityofmadison.com or attend to register or speak for or against at the Finance Committee Monday at 4:30. If this passes the final resolution will be introduced on November 19th and be up for final approval at the council on December 3rd. The start date on construction would be June 1 and a target move in date is July 2021.
PROPOSED TERMS OF AGREEMENT
Project Description: 161 apartments with 148-above grade parking stalls and approximately 8,000 square feet of retail space (the “Podium”). The 161-unit apartment building is comprised of 26 studio, 91 one-bedroom and 44 two-bedroom apartments.
Affordable Housing Component: Twenty apartments are restricted to persons earning at or below 60% of the Dane County median income and are comprised of eleven studio, six one- bedroom and three two-bedroom apartments. Through the City’s Affordable Housing Fund, the City will provide up to a $450,000 loan for the twenty apartments restricted to persons earning at or below 60% of the Dane County median income. A land use restriction agreement will be executed to maintain those affordable units for thirty years.
An additional seventeen apartments are restricted to persons earning at or below 80% of the Dane County median income and are comprised of twelve studio and five one-bedroom apartments.
The affordable housing units will be dispersed throughout the apartment building and will be materially similar in quality of materials to the market rate units of the same size. Stone House may work with a social equity provider to increase the number of 60% units, up to a maximum of 40% of the units.
Conveyance of City Property: The Podium will be purchased by Stone House for $5 million at closing, with an additional $1 million paid at the 15th anniversary of the date the project is placed into service.
Prior to or at closing, Stone House must execute a Podium Purchase Agreement and condominium deed conveying the Podium, provide evidence of private debt and equity to complete the project, and have received all land use approvals required to commence construction of the project.
Project Financing: Stone House is responsible for all costs of the private development except for the City’s Affordable Housing Fund loan. Although no alterations are expected to be needed for the City’s municipal garage beneath the Podium, to the extent alterations are identified later in the design process, Stone House will be responsible for any costs to modify the municipal garage beneath the Podium at its sole cost.
Environmental Sustainability Provisions: Stone House has agreed to include environmental sustainability elements as identified in Section 5.3 of the development agreement. In particular, the building envelope will perform at least 3% better that code requirements. Stone House agrees to use commercially reasonable efforts to incorporate solar panels on the roof, a green roof system, a blue roof system for water retention and obtain LEED equivalency.
Contract Compliance Provisions: Stone House will comply with targeted business enterprise goals for the design and construction of the building set by the City Department of Civil Rights (DCR) based on a schedule of values to be provided by Stone House. Currently, Stone House is working with DCR to ensure an estimated goal is included in its preliminary RFPs required to form the schedule of values.
Term of Agreement: The development agreement will terminate by December 31, 2020 if the real estate closing has not occurred.
PROPOSED RESOLUTION
WHEREAS, on February 26, 2019, the Common Council adopted RES-19-00161 to authorize the issuance of a Request for Proposals (RFP) to seek a developer to complete the private portion of the Judge Doyle – Block 88 project; and
WHEREAS, on March 1, 2019, the City issued the RFP, with a due date of April 15, 2019; and
WHEREAS, on April 15, 2019, three proposals were received by the City of Madison from Gebhardt Development of Madison, WI, Mandel Group of Milwaukee, WI, and Stone House Development of Madison, WI; and
WHEREAS, on September 3, 2019, the Common Council adopted RES-19-00593, accepting the proposal from Stone House Development and authorizing the Block 88 City Negotiating Team to initiate negotiations with Stone House Development; and
WHEREAS, the Block 88 Negotiating Team completed the negotiations with Stone House Development and presented a draft development agreement to the Finance Committee on November 11, 2019 (the “Development Agreement”), which includes the provision of twenty apartments restricted to persons earning at or below 60% of the Dane County median income for thirty years financed with a City Affordable Housing Fund loan of up to $450,000, and a purchase price for the Podium and air-rights of $6.0 million; and
WHEREAS, on November 25, 2019, the Finance Committee considered the Development Agreement and recommended approval of the Development Agreement with Stone House Development; and
NOW, THEREFORE BE IT RESOLVED that the Common Council does hereby accept the recommendations of the Finance Committee and authorizes the Mayor and City Clerk to execute the Development Agreement with Stone House Development, or its assigns, for the purchase and development of the Podium and Air-Rights above the City’s Wilson Street Garage on Block 88 for the Judge Doyle Project and directs follow-up actions by the City including negotiating and executing the purchase agreement, condominium documents, indemnification agreement and any other necessary contracts and the recording of the same to fulfill the objectives as described and agreed to in the Development Agreement subject to final approval by the City Attorney.
THOUGHTS? DOES THIS SOUND AFFORDABLE TO YOU?
20 units at 60% AMI for $450,000. And they are purchasing the right to build there for $6M. I can live with money they are giving and getting, but its not right to call this affordable housing at these rates and claim that we are helping people who can’t afford housing. I’d rather see that $450,000 be used for housing reaching people with lower incomes. The only way this is “affordable housing” that most people imagine is if there are two wage earners.
The units they will be providing would cost this much this year and the income limits are as follows:
STUDIO
1 person would make $42,180 ($20.27/hr)
Apartment would cost $1,055
1 BEDROOM
A household of 1 could make $42,180 ($20.27/hr)
A household of 2 could make $48,240
-
- 1 earner could make $23.19/hr
- 2 earners could make $11.59/hr each
A household of 3 could make $54,240
-
- 1 earner could make $26.07/hr
- 2 earners could make $13.03/hr each
Apartment would cost $1,130
2 BEDROOM
A household of 1 could make $42,180 ($20.27/hr)
A household of 2 could make $48,240
-
- 1 earner could make $23.19/hr
- 2 earners could make $11.59/hr each
A household of 3 could make $54,240
-
- 1 earner could make $26.07/hr
- 2 earners could make $13.03/hr each
A household of 4 could make $60,240
-
- 1 earner could make $28.96/hr
- 2 earners could make $14.48/hr
Apartment would cost $1,356
Remember “The 161-unit apartment building is comprised of 26 studio, 91 one-bedroom and 44 two-bedroom apartments.” So the majority of the units will be 1 bedroom apartments.
