City approves MOU for new senior living facility in Madison

The Madison City Commission has approved a Memorandum of Understanding with a limited liability company who is looking to develop property on the south Madison bypass into a senior living facility.  Commissioners on Monday met with Bobbie Bohlen of HME Management of Brookings regarding the project, which she said will be located east of Madison Regional Health System.  Bohlen said that PP6 Madison, LLC, the developer of the project, wants to develop the property and have the city consider Tax Increment Financing for it.  

Bohlen said that HME Management owns and manages Heritage Senior Living in Madison.  She explained to commissioners what this new senior living project would include.

Bohlen said that they did a lot of research to determine the need for this type of project.

Bohlen told commissioners that the proposed senior living project will be good for the community.

The Memorandum of Understanding states that the tax increment revenues will be split on a 75-25-percent basis, with the city receiving the 25-percent.  The city’s 25-percent will then be used to offset costs associated with the Highway 34 bypass.  City Attorney David Jencks said that the MOU is a non-binding agreement and that commissioners will want to clarify the spending of its percentage.  

City Administrator Jameson Berreth said that there are several steps to this project, with the annexation of the property expected to be before the commission sometime in April or May, and the TIF plan in June or July.