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Council approves $150,000 contract with Downtown Madison Inc. to support downtown economic strategy

6404072 · October 8, 2025
AI-Generated Content: All content on this page was generated by AI to highlight key points from the meeting. For complete details and context, we recommend watching the full video. so we can fix them.

Summary

After a 16–4 vote to reconsider the item, the Common Council approved a sole-source contract to provide up to $150,000 (proposed from TID 50) to Downtown Madison Inc. (DMI) to help fund a private-sector-led greater downtown economic investment strategy that will coordinate with the city's downtown area plan.

The Madison Common Council on Oct. 7 approved a sole-source contract with Downtown Madison Inc. (DMI) to help fund a private-sector-led greater downtown economic investment strategy. The item (Legistar 89,347) was brought back for discussion after a successful motion to reconsider; the reconsideration vote was 16–4. After public questions and staff briefings, the council adopted the funding by unanimous consent.

DMI President Jason Elstrup told the council the organization is leading an approximately $1,000,000 initiative, with the city’s $150,000 intended to help leverage private and institutional contributions. "To our funders, to know that the city is invested in this is quite key to our fundraising ask," Elstrup said, describing DMI’s plan to contract with national consultant MIG and to subcontract local outreach work to Equity by Design.

City staff said the contract is structured to ensure shared deliverables and transparency. Planning and economic development leaders said DMI and its consultants will share data, analyses and public-engagement materials with the city so the work can inform the city’s downtown area plan and related implementation steps. Director Matt Miklajewski (economic development) described DMI as the organization best positioned to convene downtown property owners and other private-sector stakeholders who are critical to implementing recommendations.

Council members and staff explained how the money will be used: Elstrup and staff said the MIG contract for technical consulting is about $400,000; DMI plans additional subcontracting for public engagement and equity work (Equity by Design) and will hire a staff position to coordinate placemaking and outreach (DMI said the position is funded in part by DMI and Destination Madison). Elstrup said the city contribution increases the likelihood of raising the remainder from private donors and institutions, including the University of Wisconsin.

Alder Harrington McKinney moved to reconsider the item so registrants could address the council; the motion passed 16–4. During the public exchange, Jason Elstrup said the work will be public and pledged that DMI would share scopes and outreach plans with councilmembers. Planning Director Megan Tuttle and other staff said the contract requires DMI and its consultant to share deliverables with the city and that the city will run its downtown area plan in parallel with DMI’s private-sector work.

Finance and legal staff said proposed city funds would come from Tax Incremental District (TID) 50 and noted that TIF money may be used for contracts of this type under state law when those contracts support district objectives or fall within allowable expenditures; staff said the city portion of the project is expected to be less than half of DMI’s total project budget and that sufficient overlap exists between the project geography and TID 50 to justify the expenditure.

Ending: Councilmembers said the contract is intended to strengthen public-private coordination on downtown strategy and to avoid duplication with the city’s downtown area plan. Staff and DMI committed to provide the council with scope-of-work documents, public-engagement schedules and shared deliverables as the work proceeds.