Greetings!

If you believe affordable housing is a right and want to preserve the character of State Street, please sign this petition to the Madison Common Council! 

We are a coalition of UW Students, UW Alumni and Madison residents alike who are trying to stop the new Core Spaces Development on State Street. We have until the Planning Commission meeting on December 7th to save affordable housing in Madison. We urgently need your help.

Core Spaces, the Chicago based developer who built (then subsequently sold) the Hub and the James is *back at it again* with another monstrous luxury highrise building proposal in downtown Madison. The proposed building will take up the block inside State Street, West Gorham and West Johnson. Core has proposed to knock down the facades on State Street, but (after outcrying concern) to preserve and reincorporate those of 322 West Johnson, 315 and 317 West Gorham. 

In exchange for a higher building, Core Spaces is promising community programs within the space, including an “equitable” student housing program and a business incubator to bring new, small businesses to Madison’s Downtown. Core Spaces also promises to reduce the height of the State Street entrance from 4 stories to 3 stories. 

There is no denying there is an affordable housing crisis in Madison, but high rise luxury apartments such as this are not the answer. We are fighting this proposal because Core Spaces is asking too much of the City and it’s residents. The proposed “Equitable” student housing program is simply a PR scheme to lure the city into a BAD DEAL. If the Madison Common Council approve this building, we fear that the City will head down a slippery slope from which it will never recover. Though advertised as progressive and innovative, this deal only benefits Core Spaces, a large corporation with housing developments across the country, not Madison, the UW or UW Students. 

Core Spaces is trying to build a cookie cutter building in our one-of-a-kind town. Ultimately, if the Madison Common council approves this proposal on December 7th, WE, the City of Madison, the University of Wisconsin, and UW students will ultimately lose. It must be stopped. Therefore, for the following reasons, we urge the Common Council to reject this Proposal on December 7th. 

Reason #1: Core’s “Equitable Housing” program is vague, unrealistic and does not meet student needs.

Core Spaces’ Equitable program is designed for “low- and moderate-income students.” Of the 1,111 beds in the building, 10% or 111 beds will be available throughout the building to qualifying students at a 40% discount of market price. Theoretically, Core Spaces will work with the University to identify qualifying students and verify their household income levels. While we admire the effort, this proposal is too vague in it’s definitions of “low- and moderate-income students.” According to University Data, the median student household income was $72,065 in 2018-19. Only 14% of students are qualified to receive the Pell Grant, which is available to students from households with an income of less than $50,000.

During various neighborhood meetings and informational presentations to the city, Core Spaces stated the discounted rate would be based on market price but would not give an estimate of “market price” when the proposal is completed in 2023. The discounted rent prices Core Spaces presented were based on current market rates at the Hub and the James, which has a minimum monthly rent of $990 per person; and a rate of $1700 per person for a studio apartment.  Given the design of the building, a more realistic estimation should also include buildings that are adjacent to the proposed site, Ovation and Domain, where a studio can range from $960-$2,495 per month. Core has presented that the discount will apply to 2 bedroom/2 bathroom apartments, and qualifying students must share rooms, meaning 4 students will be living in the apartment.

These rates are simply not realistic for the average UW Student. The Madison rental market is dictated by all properties and management companies, not just those built by Core Spaces, and rent has increased astronomically over the past decade.  The Wisconsin Housing and Economic Development Authority (WHEDA) defines affordable housing as 30% of Dane County’s median income, setting the maximum fair rent for a 1 bedroom at $580. In contrast, the US Department of Housing and Urban Development (HUD) shows the average market rate for a 1 bedroom is  $1,039 per month. If Core Spaces is truly committed to providing equitable housing, the rent for this program should be based on WHEDA’s figures not ever fluctuating “market price.” Bottom line: the program that Core Spaces is proposing is neither affordable or equitable for the typical UW Student. 

Reason #2: The Equitable Housing Program is based on “good faith” between the University and the Developer.

The Equitable housing agreement is outlined in an auspicious, non legally binding Memorandum of Understanding (MOU) between the University and Core Spaces. The success of the program lies in the specifics of this MOU which, as of 9/25/21, Core Spaces is still negotiating with the University. Throughout this process, Core Spaces has failed to address concerns about the MOU, such as whether the University can take legal action if Core Spaces fails to deliver on this Program. When considering what Core Spaces is asking of the city, we strongly condemn the fact that this program is dependent on a formal “gentleman’s agreement.”

Reason #3: This is a bad deal for the City of Madison.

Core Spaces is requesting that the city of Madison amend its planned zoning code directly on State Street. The proposed site on West Gorham, West Johnson and State Street exists between two zones, which limit building height to 4, 6 and 8 stories. Core states in its official proposal to the city, that in order for them to include various Elements, including the Equitable Housing Program, they need the 10 stories where the code limits them to 6 and 8. 

In no uncertain terms, the City of Madison SHOULD NOT approve the building because it’s design fails to meet the following standards of review of MGO § 28.09(2)(a-i). 

• Standard of Review #2: - MGO § 28.09(2)(b): Development of the neighborhood, according to the Comprehensive Plan. 
  • A picture is worth 1000 words. The architecture of this building fails to reflect the historical, charming, and unique architecture of State Street and downtown Madison. Core Spaces is a national developer with the same building “Oliv” in FOUR other college towns across the United States. They are trying to copy/paste a building into Madison’s unique, historical district.
• Standard of Review #3: MGO § 28.09(2)(c): Economic Health
  • Already, Core Spaces has forced out several downtown decades’ old businesses. While we applaud the “proposed incubator space,” Core  Spaces is, again, predicating this detail on the additional height. If Core Spaces were committed to the economic health of Madison, they wouldn’t hold this program (and other key elements) hostage. Further, Core Spaces has not been transparent about the cost to rent these retail spaces. In the Hub and the James, large corporate chains such as Dollar General (DGX) and Raising Caine’s occupy retail space, (an alarming stark contrast to the small, local business feel of State Street) while other retail spaces within the building have sat empty since the building’s construction.
• Standard of Review #4: MGO § 28.09(2)(d): Traffic and City Planning:
  • Core Spaces fails to be honest about the impact this building will have on Downtown parking, traffic and congestion. It is providing only 200 parking spaces in a building of 386 units and five additional short term parking spaces for student pick-up/drop off and food delivery. In a building with 1,111 beds, the math simply does not work.  Further, the proposal fails to address legitimate neighborhood and city concerns over student moving days and sustainability goals. It does not include recycling facilities to prevent inadequate disposal of Student items.  For the location, size and neighborhood, several more facilities must be included. While “Hippie Christmas” and increased downtown density is to be celebrated,  city resources won’t be able to keep up. The City already needs to make accommodations for the heavy traffic and limited parking in the area, recently hearing proposals up to $140 proposals by developers (including Core Spaces) for a mixed use development on Lake Street.  
• Standard of Review #5: MGO § 28.09(2)(3): The architecture and building form shall complement the character and aesthetic of the surrounding neighborhood.  
  • Again, we believe a picture is worth a thousand words. This building is, bluntly, an architectural eye-sore. It is another three-colored, High Rise “PowerPoint Building” in historic Madison that we do not need, especially on State Street. Further, as shown in Core’s State Presentation, the height of the building will greatly create a “canyon effect”  directly, negatively impacting sun exposure on all three streets in the neighborhood. This building simply does not fit the neighborhood. As one Mifflin Neighborhood resident put it, this building is aptly named ‘Oliv’ because it’s giant, arguably gross and has a giant hole in the middle. 

Reason #4: Core Spaces’ proposal fails to meet the all the standards of review necessary for the Additional Height, per MGO § 28.09(2)(h)

• Where to Begin? While we cannot dispute that the proposal is smaller than other buildings in the neighborhood, none of the buildings are directly on State Street. We cannot emphasize enough: the architecture is not compatible with state street and the surrounding area. Further, conservation of the historic facades on West Gorham and West Johnson are predicated on the City’s allowance of two additional stories. Core Spaces has failed to be transparent about how it’s building will look in the overall landscape of Madison. While they have presented the building designs from various perspectives, they have not included a pedestrian’s view from Capitol Square, UW’s Library mall and John Nolen drive. Therefore, we cannot conclusively know the proposal will not have negative impacts on the viewshed.
• If nothing else, we urge the City to reject Core Spaces’ Project based on Subsection H, alone. This building simply does not fit the character of State Street. Core Spaces has failed to demonstrate that a high-quality building could not be achieved, but for the additional height.  In its proposal, Core Spaces predicates all the elements that contribute to a “higher quality” building stating, “the proposed additional two floors allow the project the ability to include the… exceptional items.” However, the additional stories will provide 210 beds, nearly double the amount outlined in the Equitable Housing Component, but Core Spaces has not made any indication that it will increase the number of “equitable” beds in the building, citing their economic model. We ask: if Core Spaces is so committed to Equitable housing and supporting the goals of the Madison City Plan, why aren’t they being forthcoming in their assurances that these elements will be included without the additional two stories?

Reason #5: This area of Downtown Madison doesn’t need another high-rise, luxury Apartment building 

This proposal will be the 8th building of this caliper to be constructed in the Downtown and State Street Neighborhoods in the last 12 years. While we fully acknowledge the downtown plan does call for an increase in density, this project, like the Hub and the James, is built for students and young professionals who don’t stay in the area for very long. Increased density without proper facilities will result in disastrous overcrowding on W Johnson and W Gorham Streets.

Ultimately, all the elements that make this proposal a trap are intertwined and this proposal is a trapThe transient nature of students results in these buildings driving up market rates for rent across all types of housing. Core Spaces could build this building elsewhere in Madison close to Campus. Instead, it is asking for this prime state street location because their principle motivation is profit, not affordable or equitable housing for students. While undeniably the first of its kind, the “Equitable” housing component STILL does not meet the needs of UW Students or the greater Madison area. Core Spaces doesn’t need the additional height; it’s again just prioritizing its own profits. 

Above all else, this building set a dangerous precedent: Madison’s downtown plan calls for amendments to the Planned District Zoning use only if other zones cannot reflect similar development. As goes this proposal, so goes all future developments. If the city amends zoning code for this building, a precedent will be set for all other districts and Madison will disappear before our eyes. Ultimately, we ask, when will it end?

We urgently request that the Madison Planning Commission reject this proposal on October 4th at 5:30. The meeting agenda will be published at most 24 hours before the meeting. The Planning Commission will make a decision that will then go before the Common Council on October 5th. 

This is a well debated proposal, and YOUR input can help us win. 

Here are the ways you can help: 

1. Sign this petition 
2. Register to Speak at the December 7th meeting, or enter your comments into public record. 
3. Use this form to send an email to  Planning commission with your comments
4. Share this petition with 5 of your friends on Facebook. 
5. Join us on Facebook @STOPHub3 to keep updated,  learn about more ways to help and ultimately save Madison and affordable housing.

The buck must stop here.

Sincerely, 

Madison Residents for Affordable Housing (MRAH) 

Elisabeth McDonald (emcdonald5@wisc.edu) 

Sam Jorrud (sjorrud@wisc.edu)

Larry Warman, Downtown Resident