Joe Gramacki, the City’s TIF coordinator gives his quarterly TIF report to the Board of Estimates (city finance committee). It’s a doosey. Developers ask, we bend over. (backwards, to help them).
Gromacki says this is the 2015 4th quarter report due because of TIF policy, this is the staff report about what is pending and how the districts are performing. He is going to just start about the status. This is the full report.
CURRENT PROJECTS
– Anchor Bank project is the first last year, we provided $13.3M in TIF to facilitate a $98M project. The project is well underway. One of the contingencies was certification of the district, they got that last week.
– AT&T Buidling at 316 W Washington, 141,000, $29M project redevelopment and we provided $2M, it was also in the TIF that got certified last week and the project is nearly completed.
– TID 37, Union Corners, they reached agreement to provide $5M of the $6M of the purchase, we sold it for a $1, they city retains phase 5 & 6 and Gorman has an option to purchase those in the future.
– Galaxie phase 1, $3.7M. 39,000 sq ft commercial space, 205 market rate apartments, 55,000 sq ft grocery, 501 structured parking spots, $4.1M TIF loan representing 60% of the TIF, project is almost completed. We also had a phase 2 request and there was $1.4M loan that is 70% of the TIF to complete the phase.
PENDING OR POTENTIAL REQUESTS
– Tonight they are looking at a policy exception for Madison Dairy for $3.4M request that would come after this evenings meeting, it is introduced as a resolution to come to council. It is 66% of the TIF. It would require and exception to the 55% rule, this needs an amendment to the plan and boundary change, which will be introduced this year.
– Royster Commons, we created the TID in 2013, we provided $400,000 to Stonehouse to develop Dempsey Lane apartments, they currently they have at $2.1M request for 17,000 commercial space, 20,000 for Pinney Library, 86 market rate apartments, 200 surface parking spaces, 97 below grade parking stalls. Still in discussions.
– Cosmos they got a request last summer, it was $13M for 650 parking space structure. Currently that is 200,000 office, Starting Block will be constructed by American Family. The 104,000 is by Gebhardt, the rest is American Family, an entertainment venue 35,000 sq ft, 12,000 sq ft retail, 6,000 sq ft culinary center. They need to look at the TIF feasibility for the project, they also have to look at guarantees and if the cost will be recovered.
– Judge Doyle Square they have proposals and they will come back with the analysis of the proposals.
– TIF Administration, not much has changed since July. TID 38 in S. Park St. is upside down, it -9% below its value, TID 39 on Stoughton Rd is slightly under by 1%, TID 40 on the northside including Oscar Mayer has been historically negative 10 – 11% since its inception. There is a donor/donee relationship between TID 35 where it donates $500,000 for 5 years to TID 38. That should cut that negative balance in half and that should right itself in 5 years. TID 40 we haven’t come up with a definitive plan, the idea is a one time donation from TIF 42 or 43 and close the district. It only has $400,000 of cost of it and consider a different district down the road. TID 33 we adopted an affordable housing extension. They will be collecting that this year, to provide funds for affordable housing. The district will close this year.
– Speculative or Industrial TIDs – they talked about creating on a University Research Park I, which they did, it was adopted and certified by the state.
– TIF 32 half mile rule, to use $50,000 to pay for undergrounding utilities on W Mifflin for affordable housing project.
– TID 36 has a project plan and boundary amendment coming up.
– TID 37 – there are some additional expenditures on some property we purchased that brought the project over the budget, and they want to help with a community center in the area and once the district is near completion they will extend to affordable housing.
– TID 27 – there will be $400,000 in undergrounding, this increased the site, and there was 30 units of apartments on Atwood.
– New TID at Mineral and South Point Rd. is a potential.
QUESTIONS
Marsha Rummel corrects him on some TIF district numbers, 4 and 5 are in the wrong TID number in his report.
Mike Verveer asks about the half mile rule extension on Mifflin. That hasn’t been approved yet. They just approved State St. at the last meeting, the Mifflin St. will be in future. Matt Mikolajewski says that the Joint Review Board approve the program last Thursday, they are accepting applications for the State Street retail program at this point. Verveer asks if there will be a press release, they say yes and that there have been people talking to staff already. Verveer also asks the staff to talk with him about the under-grounding for the W. Mifflin project.
Rummel asks about the donor TIDs. 35 is Arbor Gate, 42 is University Crossing and that is doing quite well. 43 is on Drake, that wouldn’t be it. 41 is Wingra and that one would be more preferable, 42 is most preferable.
That’s it. Again, you might want to look at the report, but it sounds like there might be several corrections.
