Madison’s Finance Committee on Monday recommended $2.6 million in tax increment financing to fund a parking garage as part of Exact Sciences Corporation’s office headquarters and innovation laboratory in University Research Park on the city's west side.
The amount that the developer requested is tantamount to the remaining capacity in the TIF district under the existing project plan for the district.
“One of those happy accidents,” TIF Coordinator Joe Gromacki said at the meeting Monday.
The project consists of 137,000 square feet of office space, 338 underground parking stalls and 134 surface stalls at 501 Charmany Dr.
Aaron Olver, managing director of University Research Park, said Exact Sciences, the Madison company that makes test screenings for colorectal cancer, offered a “catalytic project” to promote positive development attributes in the city such as mixed-use, more dense and transit-friendly.
“We thought it was really meritorious, that it was a great way for the city to partner with us on something that is going to pay dividends in the terms of future projects,” Olver said.
If the City Council approves the loan, Olver said the project could break ground this summer and be ready for occupancy in January 2020.
Rising construction costs necessitated the request for additional funding, according to city staff. The loan would be repaid through incremental taxes generated by the project over an estimated seven years.
The adopted 2018 Capital Budget includes a separate TIF loan for $2.5 million to Exact Sciences Corporation in the same district.