Plan To Revive East Side Project Offered
The Community Development Authority Chairman Makes Proposal On Gorman's Project

By Dean Mosiman
Wisconsin State Journal, March 4, 2006

The Madison Community Development Authority chairman is offering a way to revive an $84 million project seen as a possible catalyst in reviving the near East Side.

Developer Gary Gorman had won neighborhood support, land-use approvals and praise for the design of his Avenue 800 housing and retail project. He dropped the project this week because of a $2 million difference with the city over public assistance.

Now -- with neighborhood residents, Downtown Madison Inc. and others urging that the project be saved -- authority Chairman Stuart Levitan is suggesting a plan to break the impasse.

Levitan's proposal centers on the Community Development Authority, rather than Gorman, holding land for a second phase of the project until it's ready to be built.

It's the authority's role "to solve difficult problems and help put important projects together," Levitan said.

"I think the concept makes some sense," said Gorman, who has been working on the project for two years. "If it breaks the stalemate, that might be a very positive thing."

Ald. Brenda Konkel, who represents the area and is introducing a resolution to the City Council on Tuesday asking for a creative solution to the impasse, said she "would like to see if this is a viable option."

George Twigg, spokesman for Mayor Dave Cieslewicz, said, "We're open to finding a solution."

Gorman has wanted to redevelop the 800 block of East Washington Avenue, which is now the home of a Don Miller auto dealership, with 309 condos in nine buildings, including a sleek, 10-story tower.

The project was the closest to fruition in a new tax incremental financing district on the avenue between Blair and First streets, and seen as a major tax generator for public improvements there, including money for a proposed Central Park.

The city offered Gorman $2.2 million in tax incremental financing for a $42.5 million first phase of the project, which would have 162 condos, retail space and 234 parking stalls.

But Gorman wanted another $2 million loan to help cover land costs for the $41.3 million second phase, which would provide 147 condos, more retail and 179 parking spaces.

Gorman, who broke his financing request into phases at the city's request, said the loan was needed because he must buy all the land now so Don Miller could move to the far East Side.

On Monday, the Board of Estimates demanded that Gorman be obligated on the $2 million loan if the second phase wasn't built, meaning the city could sue for the money or take the land.

But Gorman refused without a commitment from the city for additional tax incremental financing support for the full development.

The Community Development Authority is a city agency designed to eliminate blight and spark redevelopment.

Under Levitan's plan, which will be discussed at an authority meeting Thursday:

The city would provide $4.2 million in tax incremental financing, and Gorman would buy the entire Miller site.

Gorman would sign over the phase-two land to the authority, which would hold it in an existing redevelopment district.

Gorman would get exclusive development rights for phase two for seven years and would be responsible for landscaping and maintenance of the phase-two site.

Gorman would develop phase two or the city would contract with another developer.

"It's almost elegant in its simplicity," Levitan said.