Another day, another Judge Doyle Square financing gap

The latest details of the Judge Doyle Square project, which may or may not end up being the city’s largest and costliest project ever, have revealed another $4 million financing shortfall. Some city officials fear the costs are unsustainable.

Earlier, JDS Development, comprised of Hammes Co. and California-based Majestic Realty Co., announced a $44.6 million shortfall on its $111.2 million project centerpiece: a hotel with retail space and underground parking in downtown Madison.

The latest shortfall is for the $65.9 million overhaul of the adjacent Government East block, which would add new housing, retail, a bike center, and new parking. This portion would be secured with a $23.5 million loan from JDS, plus $10.1 million from the developer and $28.3 million from the city. That adds up to $61.9 million, leaving the $4 million shortfall.

Thus far, JDS Development has submitted tax incremental financing applications for Judge Doyle Square projects that would cost $177.1 million and rely on $48.6 million in public assistance.