The Madison Common Council on Tuesday voted to endorse the redevelopment commission’s authorization to issue tax increment financing revenue bonds—up to $4.9 million—to fund a package of riverfront and housing projects, while residents urged the council to delay financial commitments until zoning for a proposed riverfront district is decided.

The bond resolution was the council’s formal approval of an action the Madison Redevelopment Commission already authorized; the funds would be used alongside grants and private investment for four major projects described by city staff: market-rate apartments at the Cole (riverfront) property, a new entry‑level single‑family subdivision on the hilltop, renovation of Welch Park on the riverfront, and a permanent amphitheater by Centennial Park. The council’s roll-call vote on the resolution recorded unanimous support among members present.

Why it matters: city leaders say the borrowing would use revenues tied only to the North Madison allocation area to pay debt service, allowing the city to invest now in projects intended to multiply local investment before that allocation area expires in 2035. Opponents said the financial step comes before a public zoning decision and risks permanent changes to the historic riverfront.

City presentation and finance details

Emily (redevelopment staff) told council the redevelopment plan is built on the city’s 2016 comprehensive plan and recent grant awards; “with these $4,700,000 from the bond, we intend to leverage it to create $87,000,000 in investment, which has a multiplier effect of 18 to 1,” she said. She presented the four project concepts and said several are at an early stage but that the city needs to establish financial commitments to finish negotiations and economic development agreements.

Gary Smith of Reed Financial Group, the city’s financial adviser, presented the bond analysis and said the resolution sets maximum parameters for the issue: borrowing not to exceed $4,900,000 and an interest rate not to exceed 6 percent (the later pricing estimate shown in the materials was about 4.59 percent). He emphasized the repayment pledge: “the only source of repayment are the revenues of the North Madison allocation area,” and that existing bonds already pledge revenue from that allocation area.

Smith’s presentation included: a project fund deposit shown as $4,770,000; estimated annual debt service of about $620,000; and a parity/coverage analysis demonstrating statutory compliance with prior bond covenants. The staff and advisers said the North Madison allocation area’s revenues are scheduled to expire in August 2035, creating urgency to maximize investment now.

Council and public reaction

Several council members and many residents urged caution. One council member (name not specified in the meeting transcript) called the sequence “disingenuous,” saying the Cole property project cannot proceed without zoning changes and that asking for bonds before the zoning debate is “putting the cart before the horse.” Mayor (name not specified) and redevelopment officials disputed that characterization, saying planning, zoning and financing work in parallel and that the redevelopment commission can redirect funds if a specific project does not move forward.

Dozens of residents spoke during the public comment period. Representative remarks included: “I don’t want it to change dramatically like that,” said Debbie Beeman, a downtown resident, describing worries about riverfront character. Several speakers urged the council and planning commission to ensure any riverfront zoning and project approvals protect the city’s historic district and river views.

Process and next steps

Council members and staff repeatedly noted the distinction between tonight’s action and future land‑use decisions. The council’s vote supported the redevelopment commission’s authorization to issue bonds; the riverfront district zoning change and project‑level approvals are scheduled for separate public hearings at the planning commission (May 12) and future council meetings (first reading May 20, second reading in June if recommended). Staff and the mayor emphasized that if a rezoning fails or a project does not proceed, the redevelopment commission can reallocate the funds to other projects that meet the redevelopment plan.

Clarifying financial and program details

- Bond maximum authorized: $4,900,000 (resolution parameter).
- Project fund deposit shown in the bond analysis: $4,770,000.
- Pricing estimate displayed in staff materials: about 4.59% interest (resolution sets not to exceed 6%).
- Estimated annual debt service shown in analysis: approximately $620,000 per year.
- Sole pledged repayment source: revenues of the North Madison allocation area (no new tax rate or citywide tax increase has been proposed).
- North Madison allocation area expiration date cited by staff: 08/01/2035.
- Redevelopment staff said the broader set of projects combined with recent grants and private investment could create roughly $80–$100 million of near‑term investment; Emily described the $4.7 million bond proceeds as one lever toward $87,000,000 in leveraged investment.

Ending

The council’s endorsement lets the redevelopment commission proceed with bond issuance under the parameters in the resolution; staff noted project‑level approvals, rezoning for a riverfront district, and developer agreements remain separate public decisions. Officials said those future hearings will include detailed plans and opportunities for additional public comment; opponents said tonight’s vote showed financial commitment coming before key land‑use approvals.

Speakers quoted in this article spoke at the May meeting and are identified in the council’s minutes and the meeting transcript.