City, Gorman close to Allied deal
Mayor says developer has agreed to a compromise needed for a project on the former SuperSaver site

By Karen Rivedal
Wisconsin State Journal, January 30, 2005

Madison mayor Dave Cieslewicz said Saturday that the city was close to a compromise with developer Gary Gorman over a financing issue that could halt a major low-cost housing project in the Allied Drive neighborhood.

"I think this plan is a much more acceptable deal," Cieslewicz said. "We're going to work hard to make it happen"

But Charles Thimmesch, a Plan Commission member who could vote on the proposal Monday, said the city's whole approach to the project lacked "common sense" and careful study.

"We're going to be asked to ram this thing through," he said. "It seems to me this is part of a pattern of us doing this at the last minute and without enough public input."

The new deal would require Gorman to pay the city $560,000 upfront for the proposed project site, with $1.5 million more, plus interest, due over 15 years. Gorman had proposed day-care center and some road work that Gorman had been slated to build are among concessions.

"That allows us to pay more upfront," Gorman said Saturday. "It's a trade-off and a compromise, but a fair one, I think. It's not over until it's over, but there's a good, productive conversation going on."

The city recently bought the parcel for $3.5 million to sell to Gorman for the project, envisioned as a 104-unit apartment development that could boost the struggling neighborhood. Thirty percent of the units would rent for market-rate - bringing much needed higher incomes into the area, Cieslewicz said - while the rest would be affordable for low-income families.

But the plan hit a major snag last week, when the Board of Estimates refused Gorman's proposed payment schedule.

The new deal isn't perfect. For instance, there's no iron-clad guarantee that Gorman will pay the full $1.5 million, because that depends on the project succeeding, Cieslewicz said. And there are still several design questions to be worked out.

But it's better than what was proposed before, he said, and will allow the city and Gorman to try to make a tight deadline for federal assistance for the project. Gorman must have an application for tax credits completed b Friday to start the project next year

"It's unfortunate, but we do need to move ahead," Cieslewicz said of the timing. "This project is very good for the Allied Drive neighborhood."

The Board of Estimates and the Plan Commission will meet on the proposal at 5 p.m. Monday in Room 300 of the Madison Municipal Building, 215 Martin Luther King Blvd. The City Council could vote on it Tuesday.