City may now part ways with Gebhardt on troubled Judge Doyle Square development

Madison's Judge Doyle Square development took another turn Monday as officials announced the city will no longer work with Gebhardt Development on the affordable housing portion of the project, pending a vote by the full city council at its Sept. 3 meeting.

Instead, the city's finance committee recommended the city pursue negotiations with another Madison developer, Stone House Development, after the committee determined Gebhardt's proposal was "too ambitious," according to a report from The Capital Times.

Stone House was one of three original applicants for the project along with Gebhardt. Stone House's proposal included a 159-unit apartment project and 7,000 square feet of retail space in the podium portion of the JDS development, which would cost an estimated $40 million. Thirty-seven units would be earmarked for occupancy restricted to renters with household incomes at or below 80 percent of the Dane County median income.

In its original proposal, Gebhardt Development wanted to separate 78 affordable housing units from the other 118 market-rate units on site, which concerned members of the city's finance committee who didn't want units separated by income restrictions. Gebhardt offered several amended proposals to address city concerns, but city officials opted to dissolve their agreement with Gebhardt and move forward with Stone House instead.