Madison Reporter

The City of Madison is proud to celebrate two successful projects where local contractors have completed key developments in the community that align with the City’s values, core mission, and dedication to diversity and inclusion.
The City of Madison worked with development firm JT Klein and construction firm McGann Construction to complete two affordable housing properties (within one redevelopment project), which included a diverse workforce, City of Madison funding, and small, diverse businesses as subcontractors.

“I am committed to having the funds the City spends contribute to building wealth in our community. The construction industry plays an important role in the growth and development of our city, and offers good, family-supporting jobs,” said Mayor Satya Rhodes-Conway. “It’s critical that these jobs be available to a diverse workforce, and I’m grateful that JT Klein and McGann Construction are committed to fostering a culture of inclusion and diversity.”

Westgate Mall Redevelopment

The Westgate Mall Redevelopment located on South Whitney Way included collaboration between the City of Madison Economic Development Division, Community Development Division, Department of Civil Rights, JT Klein, and McGann Construction. This redevelopment project includes three buildings total, two of which received City of Madison financial assistance in the forms of Tax Incremental Financing (TIF) and Affordable Housing Funds (AHF). The third building did not include TIF nor AHF funding.

Project No. 1: University Park Commons I

Within the Westgate Mall Redevelopment, University Park Commons I is a 68-unit building with one- to three-bedroom units. It is reserved for people making between 30% and 80% of Area Median Income (AMI). AMI is defined as the midpoint of an area’s income distribution, so for a single person in Dane County in 2023 30% AMI is $25,700 and 80% AMI is $66,300. For a family of 4, 30% AMI is $36,650 and 80% AMI is $94,650. These apartments address Madison’s affordable housing shortage.

Project No. 2: Oak Ridge Apartments

Also within the Westgate Mall Redevelopment, Oak Ridge Apartments is an 82-unit affordable senior housing building. This property is reserved for seniors making between 30% and 80% of AMI.

Big Impacts

Each City-funded project had a goal of working with 25% Emerging Business Enterprises (EBEs), which means the general contractor for the project (McGann Construction) needed to choose their subcontractors with the goal of 25% of project dollars going to Emerging Business Enterprises. If they were not able to meet the 25% goal, they needed to show that they tried in good faith to reach the goal.

EBE’s are businesses that are certified as 8(a) Small Disadvantaged Business, Disadvantaged Business Enterprise, Emerging Business Enterprise, Minority Business Enterprise, Small Business Enterprise, Women Business Enterprise, Veteran Owned Business, Disabled Veteran Business, or Service Disabled Veteran Owned Small Business. To learn more about the different certification types that the City of Madison offers, or if you are interested in certifying your business, check out the Department of Civil Rights’ Targeted Business Enterprise program.

Both City funded projects also had City of Madison workforce goals which includes a goal of 13% Black, Indigenous, People of Color (BIPOC) working on site, and a goal of 3% Women working on site.

“We’re delighted to see A+ performance from McGann and JT Klein in hiring Emerging Business Enterprises and ensuring that their contractors hire a diverse workforce in the course of developing affordable housing with City financial assistance,” Jim O'Keefe, Director of Community Development, said.  

Project EBE Numbers

University Park Commons I had a performance of 35.5% of the contract going to Emerging Businesses Enterprises, which translates into $3.89 million dollars going to small and diversely owned businesses. This project had 38.4% of the project hours worked by BIPOC, which translates into 23,746 hours, drastically exceeding the 13% goal. The project also had 4.3% hours worked by women, which translates into 2,655 hours.

Oak Ridge Apartments had a performance of 33.4% of the contract going to Emerging Businesses Enterprises, which translates into $3.83 million dollars going to small and diversely owned businesses. This project also had 36.1% of the project hours worked by BIPOC, which translates into 23,305 hours, also drastically exceeding the 13% goal. The project had 4.1% of hours worked by women, which translates into 2,645 hours.

“Congratulations to JT Klein and McGann Construction for working with City staff to build a stronger, more inclusive community,” City of Madison Department of Civil Rights Director Norman Davis said. “It is great to collaborate with businesses whose goals align with the City’s goals to address the housing crisis and workforce shortages.”

If you’re interested in working with the City, or learning more about the Affordable Housing Funds visit our Community Development webpage.

Original source can be found here.