February, 2004       Dane County Towns Association                   Page 2

Urban In-fill Development (continued)

In each of these cases, the soil under the pre-existing buildings was contaminated. This is the first distinction between in-fill redevelopments and peripheral developments.  Corn fields may have some residue of farm chemicals, but they rarely have anything like the petroleum spills, industrial chemicals, mercury or dry cleaning solvents that often are found in urban properties.  Therefore, someone interested in redeveloping a commercial or residential property will have to factor in the huge costs of cleaning up the contamination.  In each of the examples cited herein, part of that cost was borne by grants from the State of Wisconsin for "brown fields" redevelopment.  But, the remaining costs were borne by the developer and the cities involved.

The next obstacle to redevelopment is the cost of demolishing existing properties and replacing the infrastructure.  Many older buildings have asbestos and other hazardous chemicals.  Those hazards make demolitions significantly more expensive than otherwise would be the case.  Further, most of the sewer laterals, roads and other public services serving existing development must be replaced and upgraded, a task which is often much more expensive than constructing those facilities on previously undeveloped property. 

The Town of Madison, which is fully urbanized, has been working for years to upgrade dilapidated or blighted buildings and areas.  The area lying along Badger Road was a prime target, with good transportation access and underutilized land.  Randy Alexander came forward and worked with the Town to develop a campus for high tech businesses which will add more than $80 million to the tax base - of not only the Town, but also the school district and county.  The Town's efforts succeeded despite active hostility from the City of Madison, and served not only to boost the Town, but to accommodate a significant amount of growth without requiring the use of farmland.

In the case of the Nakoma Plaza redevelopment, the shopping center that existed on the premises had a large Kohl's store, a strip mall, and a few remaining tenants, as well as a Walgreens drug store.  All of these structures except the Goodwill store at the northern end of the plaza were demolished, and the road network serving the property