East Madison residents have been awaiting a redevelopment at the blighted corner at East Washington Avenue and Milwaukee Street — named Union Corners — for nearly 10 years. Changes may be in sight now that the city and Gorman & Co. reached a tentative financing deal after negotiating for over a year.
According to a story in the Wisconsin State Journal, the deal, which still needs City Council approval, would transfer 7.6 acres to Gorman for $1 so it can begin developing four phases of the six-phase project. The land is valued at $5 million, according to the report.
The sides came together after Gorman was able to demonstrate a $5 million financing gap for the initial phases, which would include a $20 million UW Health Clinic, a $13.1 million rental housing project, and a proposed $20 million mixed-use building.
Gorman would also get a three-year option on the remaining 3.8 acres of the total 11.4-acre site for phases five and six if it can demonstrate a $1 million financing gap.
If approved, construction could begin as soon as July or August.
