A Middleton development group is proposing a 12-story hotel and student apartment building for downtown Madison.
Raymond Management Co. Inc.‘s proposal for the corner of Johnson and Bassett streets is the third attempt to get a project off the drawing board and into the ground since Madison developer Erik Minton bought the site 10 years ago.
Minton said he sold the site to Raymond because he could not get financing for his project. He said he wishes Raymond well but is not optimistic.
“I just do not trust anybody in the city’s review process,” he said.
Raymond representatives on Wednesday will present the project to the Madison Urban Design Commission, and both Alderman Mike Verveer and Larry Warman, Mifflin West District chairman, said they have no immediate objections.
The project would border an area covered by Capitol Neighborhoods Inc., a downtown residents group representing five downtown neighborhoods including Mifflin West.
“As far as I’m concerned, if TIF isn’t part of the equation, then more power to the developers,” Verveer said. “It’s not a big concern of mine.”
Verveer said the project could run into controversy if the developers ask for tax incremental financing to help pay for development.
Jeff Kraemer, a member of Raymond’s development team, said Monday the company has not yet finished its financial analysis to determine if it needs TIF support. He said the company does not have a cost estimate for the project.
TIF districts let municipalities borrow money to subsidize developments and pay for utility and street work that serves projects. Communities then use new taxes generated by the projects to pay off the debt.
Warman said he wants to see more detailed designs, but the site’s design guidelines call for 10- to 12-story buildings.
“I want to be empathetic,” he said. “We’ll see what comes of the proposal.”