Response from Ted Markom on behalf of Gorman
- Have you worked out any more details of your plan? There is no need until things get finalized with the project, after the selection is made for a developer. We will finalize plans with input from the City and the community once the project is committed.
- How is the grocery store oriented? (The City is requiring the entrance to the supermarket on Park to "activate" the street.) We will build the store where the community and City want it.
- What will you do if you do not get WHEDA funds? We will try again the next cycle. We need WHEDA funding for affordable housing. We have a lot of experience/success getting WHEDA funding and other City tax credits for our other developments in Madison (such as Union Corners). Will your project fall through? Without WHEDA funding, we would need to go to market rate housing, which would not be feasible.
- What, if anything, can you do to move up the completion of the supermarket to 2021 so that the South Side does not experience a food access gap that lasts two years? Everything depends on the WHEDA application cycle. If the city can get the zoning changed to allow for the development and plans are approved (which usually takes about a year), then the WHEDA application could be submitted in December 2020 (There is only one chance per year to apply for WHEDA’s very competitive 9% tax credit – SMU.) If we’re awarded funds, we could then complete the supermarket by late 2022. (This would mean about a food access gap of about a year—SMU.) We were hoping that the City would choose a developer by early October. If we had been chosen, we could have applied for WHEDA in December 2019 and possibly had funding to begin building in 2020 and had the supermarket complete by 2021.
- When would the city have to complete the road for you to make the supermarket completion date of 2021? Grocery, housing and road construction could occur concurrently. The City needs to finish its road design, finalize placement of road, etc. If the road is designed this fall and bid this winter, it could be constructed next year. The road is already in the budget, but a lot still needs to get done to make it happen.
- What would you say is the city's greatest concern about your plan and how do you address that? We received minor stuff on our staff report. We’re not worried about details. We have the expertise and experience to build a sustainable grocery store and housing and produce a quality product with community input.
- Is there the possibility of changing the balance of market rate to affordable housing so there is more affordable housing? Most assuredly, the more affordable housing, the more WHEDA funds that can be used. WHEDA only wants 15% market-rate housing. The builder has to pay for market-rate housing. WHEDA pays for the affordable housing.
- We're interested in the long-term viability of the store and the lowest prices possible to the community. Can you lower your ROI to make a lower rent for the supermarket possible? We worked with Mauer’s to meet what they could afford to pay for a supermarket. They were our starting point. We will make no money on the grocery and we will leave the grocery store to Mauer’s for 15 years. It’s a pass-through for us. We are investing in the housing for our profit.
- What is the possibility of including meeting space for the surrounding neighborhood/community to use as part of the development? Sure, how big a room? 50-75/100 people? We usually include community space with housing, but in this case, we think it makes more sense for the space to be rolled into the grocery store. We will look into building a commercial kitchen that businesses in the community can use, too.
- What lessons have you learned from your other mixed- income/affordable projects that will benefit South Madison? We have gone through some intense processes with projects. Check out Union Corners as an example of a project that benefited the community. We have experience with community input on developments and how to come to compromise. Our experience speaks for itself.
- What environmental contamination is present on the T-O site to qualify it for the $500,000 WEDC Brownfields Grant? Are you prepared to roll this into your private first mortgage if the grant isn't awarded? We will work out any environmental concerns after the contract is awarded. It all depends on the site. The City does an environmental survey once a contract is in place.