News

Amendment would cut Edgewater TIF funds, lower others

Alder says abuse of funds too common in 2010 city budget

After failing to strip the Edgewater project of it’s funding in Board of Estimates, city alders will try once more to remove it from the Madison capital budget. An amendment to the 2010 capital budget removes $16 million from the budget over the next two years currently set aside for funding the Edgewater Hotel project.

Ald. Michael Schumacher, District 18, said his problem with funding the Edgewater is not the project itself — the problem is no final project has been presented.

“I am actually very much a supporter of the Edgewater renovation,” Schumacher said. “But we have not really gotten the exact information and data on the project.”

Schumacher expressed his concern about misusing tax incremental financing funds.

“[TIF funds] should not be used in such as loose manner that they’re just added to the budget as a placeholder,” Schumacher said.

Schumacher said he did not think putting the money in the budget is good negotiating.

“Saying up front, ‘TIF is on the table,’ that’s like playing a poker game and I’m showing my cards to the other side,” Schumacher said.

Rachel Strauch-Nelson, spokesperson for Mayor Dave Cieslewicz said making the project apply for money after the budget is made would be unfair.

If the project wanted to apply for money that is not set aside in the budget, it would need a supermajority vote of the Common Council.

“It’s another unnecessarily high bar that would be in place for this project,” Strauch-Nelson said.

Another amendment introduced by Ald. Jed Sanborn, District 1, with other alders including Schumacher, removes almost $2 million from the budget for updating the streetscape on Capitol Square.

According to Ald. Mike Verveer, District 4, if the money remains in the budget, the streets around the Capitol Square would all be cleaned and updated.

Included in the updates would be new street furniture, kiosks, waste receptacles, bicycle racks, new sidewalk pavement and improved landscape.

Again, Schumacher cited the misusage of TIF money as his reason for wanting to remove funding.

“When we take money out of TIF money, we’re really taking money away from property taxes that could come to the general budget,” Schumacher said.

Verveer said he thought it was important the money stay in the budget.

“Our side [of the Square] has been kind of shabby, and even pathetic-looking,” Verveer said.

Verveer said it is important to include the money this year because 2010 is the Capitol Square district’s last year of TIF eligibility. He said he wants to complete the project now while the money is still there.

Ald. Bridget Maniaci, District 2, proposed another amendment providing $1.2 million for updating James Madison Park, contingent on the sale of three houses on the property.

“This is just a placeholder amendment,” Maniaci said. “None of the money exists [yet].”