Madison, a city known for its progressive thinking and prudent use of resources, faces a crucial decision regarding the future of its long-awaited public market project. With resolutions on the table to add $1.64 to $2.28 million in new City-issued General Obligation borrowing authorization, contingent upon Dane County's approval of an additional $1.0 million, the total project costs could reach a staggering $24.2 million, and that figure doesn't even include the interest on the bonds that would be used to pay for the market. All of this, however, would come without any revenue. This is an opportunity to reconsider the project's design and transform it into a mixed-use development, a change that could substantially benefit the city's finances.
The current proposal involves the rehabilitation of a one-story, 45,000 square foot municipal garage on a 3.37 acre site into a public market. While the concept of a public market is undoubtedly appealing, the potential benefits of a mixed-use project cannot be ignored. Here's why the Common Council should reject the additional funding and support the project's redesign:
Housing Crisis: Madison is grappling with a severe housing shortage. By reimagining the public market as a mixed-use development with 290 housing units, we can address this pressing issue head-on. Providing much-needed housing is an investment in the city's future, catering to a diverse range of residents and enhancing the overall quality of life.
Economic Benefits: A mixed-use project would not only improve the city's housing situation but also generate substantial economic gains. The sale of development rights could bring in an immediate infusion of approximately $6 million, while incremental property tax revenues over the next 50 years could provide a significant financial boost totaling $86.8 million. Of this revenue, $33.6 million would go to the city, more than enough to pay for the market, and $39.1 million would benefit the school district. This income can be utilized for the betterment of the city and its educational institutions.
Transit and Zoning Goals: The current public market plan underutilizes the site, going against the city's goals and Transit Overlay District Zoning. A mixed-use project aligns better with these objectives by creating a dynamic space that encourages transit use and promotes a vibrant community.
Resource Allocation: Over the past decade, thousands of hours of volunteer and staff time have been dedicated to this project. Rather than increasing the funding for the current proposal, which may not fully meet the city's needs, it is more judicious to redirect these resources towards a project that can deliver on multiple fronts, including housing, economic growth, and urban development.
Sustainability: A mixed-use development is often more sustainable in the long term, as it encourages efficient land use, reduces transportation needs, and fosters a sense of community. This aligns with Madison's commitment to environmental stewardship and urban planning principles.
To ensure the successful transformation of the public market project into a mixed-use development, I propose that the City of Madison issue a Request for Proposals (RFP) to developers. This would allow developers to submit innovative plans that maximize the potential of the site while meeting the city's goals. An RFP process encourages competition and ensures that the chosen proposal aligns with the community's vision for the future.
Additionally, a public market would serve as a fabulous anchor tenant in a mixed-use development, drawing residents and visitors alike and creating a vibrant hub that complements the other functions of the project.
In conclusion, the Common Council should seize this opportunity to reshape Madison's future. By rejecting the additional funding for the current public market proposal and supporting its redesign as a mixed-use project, coupled with issuing an RFP to developers, we can address critical issues such as housing, stimulate economic growth, and create a more sustainable, vibrant city for generations to come. Madison has always been a city that thinks ahead, and it's time to make a forward-thinking decision that benefits all residents.
This has major financial and property tax implications. It's on Council agenda 10/17, item no. 37, Legistar no. 80106. Contact your alder. Register to speak at the meeting.
If you enjoy this content, please like and share. For questions and media inquiries, please comment below, send an email to asaloutos@tds.net or call (608) 345-9009. Alex Saloutos is a Madison native and licensed real estate agent with nearly four decades of experience in housing, real estate development, and construction. He brings a wealth of knowledge and a deep commitment to responsible urban development. © Alex Saloutos 2023.
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