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Commission approves TIF District No. 7 for proposed multifamily project; developer outlines costs, timeline
Summary
Madison commissioners approved the resolution, project plan and development agreement creating Tax Increment Financing District No. 7 to support a proposed multifamily housing development. Developer told the commission eligible project costs total roughly $1,080,000 and that streets serving the development will be private.
The City of Madison on July 7 approved three separate actions to create Tax Increment Financing (TIF) District No. 7 and to authorize a development agreement with Sodak Construction to support a proposed multifamily housing project.
Why it matters: the TIF framework lets the city commit future incremental property-tax revenue from the developed site to reimburse eligible site-improvement and infrastructure costs the developer incurs. City staff and the developer said the arrangement places repayment risk on the developer and does not create constitutional debt for the city.
Developer presentation: Kellen Bluedorn of Sodak Construction described the proposed development as a multi-building multifamily project and detailed a unit mix for a 12-plex building type (each 12-plex configured with eight two-bedroom units, two one-bedrooms and two studios). Toby Morris of Collier Security, who assisted with the TIF presentation, told the commission the developer has a proven track record and that the project aligns with Madison’s 2022 housing study, which identified demand for one- and two-bedroom apartments.
Costs and timeline: the developer and staff identified approximately $1,080,000 in eligible project expenditures in the TIF project plan (land, engineering, site work and infrastructure). Toby Morris described a projected amortization horizon of about 15–16 years under current property-tax conditions but cautioned that changes to state property-tax policy would alter that projection. The developer said it intends to begin site work in the fall, pending final documentation.
Key restrictions and responsibilities: meeting discussion and the project plan specify an affordability restriction tied to program terms: the Department of Revenue reviewed and verified the project’s affordable-housing qualification for the stated period; the developer must certify actual incurred costs before the city reimburses from increment. The commission also learned the new internal streets to serve the development will be privately owned and maintained, not city streets.
Process and review: the project previously underwent planning-commission review and was approved as a conditional use in the applicable zoning district. City counsel and outside counsel reviewed the development agreement before the commission approved it.
What’s next: city staff will finalize and execute the development agreement, record the TIF documents and the developer will provide a schedule and certified costs for reimbursement. Staff said they will return with executed agreements and any follow-up details to the commission.
