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An Ordinance Authorizing and Directing the Acquisition through Condemnation of the Property Commonly Known as and Located at 3-31 Madison Street and 509 S. Humphrey Avenue, also known as 11 Madison Street
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Introduction
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This is an ordinance authorizing and directing the acquisition through condemnation of property commonly known as and located at 3-31 Madison Street and 509 S. Humphrey Avenue, also known as 11 Madison Street.
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Recommended Action
Adopt the ordinance.
Prior Board Action
There is no prior Board action associated with this item.
Background
Pursuant to Village Board direction, Village staff have been exploring options for the location of a new Police Station. The primary focus for the location of this facility has been the south lawn of Village Hall. However, earlier in 2025, U.S. Bank listed property for sale at the southwest corner of Madison Street and Austin Boulevard, commonly referred to as 11 Madison Street, with assigned street addresses of 3-31 Madison Street and 509 S. Humphrey Avenue. A map of the property is attached, with the parcels outlined in blue.
The property in question only includes Bank parcels and no residences. The property totals approximately 1.1 acres and includes parcels on the east and west side of Humphrey Avenue on the south side of Madison Street, which are currently improved with a two-story commercial structure of approximately 37,000 square feet and parking lots. The property is just two blocks east of Village Hall.
Village staff reviewed the property and building and determined that they would be a suitable option for the new Police Station. The Village then began negotiating for the purchase of the property. After several rounds of negotiations over several months and multiple offers from the Village, a standstill has been reached.
In order to provide the Village with the opportunity to acquire the property at an acceptable price and within the timeline necessary for the new Police Station, the attached ordinance was prepared to authorize the Village to obtain title by condemnation if agreeable sale terms are not reached. If approved, per Section 3 of the ordinance, the Village will present a best and final purchase offer based upon an independent appraisal prepared by a certified and licensed appraiser. If the owner does not accept that offer, the Village may initiate condemnation procedures to acquire the property.
Timing Considerations
The Village Board is scheduled to discuss the Village Municipal Campus at a special meeting on November 20. Approval of this ordinance would allow staff to continue to pursue acquisition of the property for the Police Station and to be prepared to discuss the Police Station and related Campus matters at the November 20 meeting.
Budget Impact
The property is listed for sale at $2.65 million. The Village is acquiring the existing building at 11 Madison for adaptive re-use. The cost for the Village to purchase a site and build a new building is prohibitive to the Village’s overall budget This was not budgeted for. The funding for this item will come from the fund balance.
Staffing Impact
Acquisition of the property and construction of a new Police Station would provide the Police Department with a better facility from which to perform its work and would free up space at Village Hall for other uses.
DEI Impact
There is no DEI impact associated with this item.
Community Input
There has been no community input given in relation to this item.
Staff Recommendation
Approve the ordinance.
Advantages:
• The ordinance would allow the Village to acquire the property through condemnation if voluntary sale terms are not reached.
Disadvantages:
• There are no disadvantages to this alternative. This action would expedite the acquisition process.
Alternatives
Alternative 1:
The Village Board can reject the ordinance.
Advantages:
• This action will result in cost savings to the Village.
Disadvantages:
• This action can result in cost increases should the Village search for alternate sites for the Police Station.
• This action may result in a longer timeline for the construction of new Police Station facilities.
Alternative 2:
The Village Board can request additional information.
Advantages:
• The Board will be provided with the additional information requested.
Disadvantages:
• This action may result in a longer timeline for the construction of new Police Station facilities.
Anticipated Future Actions
If voluntary sale terms are reached after approval of this ordinance, the Village Board will be asked to approve the purchase and sale agreement.
Prepared By: John Melaniphy, Assistant Village Manager of Economic Vitality
Reviewed By: Ahmad M. Zayyad, Deputy Village Manager
Approved By: Kevin J. Jackson, Village Manager
Attachment(s):
1. Ordinance
2. Map