» Project could begin by the end of 2020, but ‘substantial’ work must begin by end of 2021
By JACK WEATHERLY
In asking the city of Madison for financial help in building the ballyhooed Madison on Main project, the developer, Greenstone Ventures Inc. of Atlanta, will have to meet certain deadlines.
That’s according to the general agreement between the city, the Madison Square Development Authority and Greenstone Ventures Inc. of Atlanta, a copy of which was obtained by the Mississippi Business Journal through a public records request made to the city.
Madison at Main is a 17-acre project in the heart of the city at the intersection of Main Street and Highway 51, extending south to Madison Avenue.
The private component, which is valued at a minimum of $100 million, includes condominiums, townhouses, shops, office space and a boutique hotel
Certain details are redacted, or blacked out. One sliver of light cast on the agreement is that the number of condominiums must be at least 28. But the size and sales price are blacked out.
The developer has requested that the city create a tax increment finance, or TIF, district, whereby taxes generated by the project will be diverted to reimburse Greenstone for infrastructure and multilevel garage costs.
The estimated revenue, from sales derived from the grocery, retail and restaurant space and ad valorem, or property, tax would would be needed to service bonds issued by the city for the TIF district is redacted.
Under the TIF agreement, construction would have to “substantially” start no later than Dec. 31, 2021. The developer must “substantially” complete two or more of the following facets by Dec. 31, 2024: boutique hotel, grocery and multilevel parking garage.
Chris Schoen, managing partner of Greenstone, said in a recent interview that construction could get underway by the end of 2020.
The general agreement calls for the city to support the developer should it apply for Tourism Tax Rebate program administered by the Mississippi Development Authority (MDA), whereby the sales taxes generated by the hotel would go to the developer.
However, revenue generated through the tourism rebate program, if an application is approved by the MDA, may not be used to pay for the TIF bonds.
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