Council approves land-banking purchase of 1814 South Park Street; tenants told leases remain in effect

The Madison Common Council on Feb. 11 unanimously approved a substitute amending the Economic Development Division’s 2025 capital budget to transfer funds from Tax Increment District (TID) 51 to the city’s land-banking program and to purchase the property at 1814 South Park Street.

The vote came after three public commenters described the potential impact on existing tenants and asked what support the city would provide. The substitute was moved by Alder Tishler and adopted without recorded objection.

City staff and the development director said the purchase is part of a multi‑year land‑banking strategy for South Madison intended to combine parcels the city already owns to create redevelopment-ready pads for housing, commercial space and park expansion. Director Miklodjewski said the city’s plan is to hold the property, make it ready for redevelopment, and partner with private developers to preserve affordability.

Small-business owner Sarah Branch, who operates Earthly Temptations at the South Park Street strip, told the council she spent about $15,000 preparing the space to open and said she had roughly $1,000 on hand when she started the business. “Financially, we don't have any money saved for the move,” Branch said, adding she learned of the sale from a news article after receiving two postcards about a council meeting. Kina Atkinson and Alex Booker also spoke in support of the tenants, urging the city to prioritize assistance for long-standing, locally owned businesses in the area.

In response, Miklodjewski said the building at 1814 South Park Street has existing tenant leases that run through 2026, and the city does not intend to demolish or otherwise alter the building before the last lease expires. He added the city is willing to discuss lease extensions and to accommodate tenants where feasible. Miklodjewski also listed potential financial and technical resources city staff can connect tenants with, including the façade grant, building improvement grant, the Commercial Ownership Assistance Program and other small-business resources.

A city attorney clarified that the city has not terminated any leases and emphasized that, because the council has not exercised eminent-domain powers in this matter, the city has no legal obligation to compensate tenants that would apply only in a condemnation scenario. The attorney said the city nevertheless offers programs to help businesses that need to relocate.

Several alderpersons asked follow-up questions about relocation timelines and available space. Miklodjewski said the city is evaluating options such as space at Village on Park and will continue direct outreach to affected tenants. He said staff had already begun conversations with at least one tenant and would schedule further one-on-one meetings to document space needs and search options.

The council recorded a unanimous vote in favor of the substitute amending the Economic Development Division capital budget and authorizing the purchase for the land-banking program. The item required a super‑majority and was approved as presented.

The council also approved the consent agenda earlier in the meeting by unanimous voice/roll call; item 40 (the land-banking substitute) had been removed from the consent agenda for public comment and separate consideration.

Copies of the city’s Small Business Equity and Recovery programs, building improvement grant details and contact information for the Office of Business Resources were described by staff as the next steps for tenants seeking assistance.