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Council approves TIF loan for 501 East Washington: 223 affordable units and affirmative-action monitoring required
Summary
The Common Council authorized a tax-increment-finance loan for Wash Franklin LLC to build about 223 affordable housing units and roughly 68 parking stalls at 501 E. Washington Ave. The agreement includes affirmative-action goals set and monitored by the Department of Civil Rights, with a funding holdback until 80% project completion.
The Madison Common Council unanimously authorized a development agreement authorizing a tax-increment-finance (TIF) loan to Wash Franklin LLC to construct approximately 223 units of affordable housing and about 68 parking stalls at 501 East Washington Avenue in TID 53.
Why it matters: The project will add several hundred affordable housing units in a Tax Incremental District and the loan agreement includes affirmative-action and workforce utilization requirements administered by the city—s Department of Civil Rights as conditions of the funding.
Key details: The loan and development agreement were approved on June 3. Assistant City Attorney Robles explained that the agreement contains standard affirmative-action language used in city loan agreements: the developer meets with the Department of Civil Rights to set project-specific goals, reports regularly, and must demonstrate good-faith efforts if goals are not met. Robles said the department typically requires a meeting before council consideration and that the city holds back a portion of loan funds until the project reaches approximately 80% completion; at that time the city verifies compliance before releasing the remainder of funds.
Robles told council members that the Department of Civil Rights sets the workforce/utilization goals, the developer must submit ongoing reports (Robles: "I think it's monthly reports to Department of Civil Rights"), and failure to meet goals without documented good-faith efforts could lead to consequences under the agreement.
Alder Herring McKinney had asked for clarification of the affirmative-action language; staff confirmed the process includes setting goals with the Department of Civil Rights, an 80%-completion holdback and ongoing reporting obligations.
Outcome and next steps: The council voted to authorize the mayor and clerk to execute the development agreement. Staff will continue to coordinate with Department of Civil Rights to monitor compliance with workforce and contracting goals as the developer progresses to the 80% completion threshold, at which point remaining funds may be released subject to verification.
