New Proposals for Houses in James Madison Park

The house furthest West has a likely use. Now we have more proposals for the Collins House and the one in the middle (The Ziegelman House).

646 East Gorham St (Legislative File #24469)
Proposal One: McCormick – Rental property with public tours

a. Building Offer: $250,000 (cash)
b. Land Lease Offer: $3,000/year @ 99 years (For a total of $297,000)
c. Taxes: to be negotiated based on final purchase price.

Proposal Two: O’Kroley Owner-occupied 4 unit

Added owner contribution will be required beyond the point of loan to value ratio not exceeding 80% of appraisal value ($200,000 assumed) will be by owner cash contributions, the reinvestment of cash flow and up to an additional $50,000 funding commitment from Douglas O’Kroley, should required maintenance repairs be required prior to the development of cash flow to establish a financially sustainable property. The proposer is willing to negotiate the terms of the 99 year ground lease for the property that the structure sits upon including outdoor living space additions and access easements.

Proposal Three:
Single Family Home with limited public access plan (coordinated with house to west and annual events)- Doane/Suska

Purchase price: $190,000
Annual lease payment: $4,200
Estimated improvement costs: $170,000 budget including cost overruns
30,000 sweat equity (we will refinish hardwood floors, paint, install new bathroom and kitchen floors, landscaping)
Estimated home value after rehab: $395,000
Estimated annual property tax revenue: $8,690 ($395k x mill rate of .022)
If we purchase the house, we will negotiate with the city an annual inflationary increase of the land lease rate.
We propose that at the end of the lease term, in 99 years, the home owner(s) will be able to negotiate in good faith for a renewal of the lease with the city.

704 East Gorham St (Legislative File #24470)
Proposal One:
Grandmother from Washington DC buying house for Daughter and as second home in Madison with a “Farm to Fork” program run out of a commercial kitchen. Fant
$5830 ground rent
$4070 Taxes
Not sure of the purchase price.

Proposal Two: Short term lodging house, longer term B&B. Chef’s Night Out dinners and catered events. Klebba-Waugh
$130,000 purchase price.
$4,500/year for 99 years with escalators to be negotiated after approval of the proposal.

Proposal Three Rental project with public tours annually or on request – McCormick

a. Building Offer: $200,000 (cash)
b. Land Lease Offer: $3000/year @ 99 years (For a total of $297,000)
c. Taxes: to be negotiated based on final purchase price.

QUICK REVIEW
With my very quick review, I think either Doane or O’Kroley are of interest, but leaning towards Doane on the middle house because of the restoration to a single family home. For the Collins House, I think Klebba/Waugh most understood the intent and have the best public use of the building, which was a major factor in the rfp and I suspect they score well. Not sure I understand the public use intended for the Fant proposal.

Of course, these proposals will get fleshed out during the process and I look forward to hearing more. I was a good idea for the committee to go back out for proposals, I like these much better. I’m surprised the international house project didn’t re-submit.

Of course, at the last council meeting, Bridget Maniaci and the Council limited our public voice by taking away the referendum requirement. I probably should blog that, eh? So little time . . . .