City of Madison Announces Major Housing Initiative with Approval of Two Economic Development Agreements

City of Madison is continuing its commitment to addressing one of the community's greatest needs

Under the leadership of Mayor Bob Courtney, the City of Madison is continuing its commitment to addressing one of the community's greatest needs with the approval of two Economic Development Agreements (EDAs) that will support the phased construction of 400 or more housing units across two residential developments.

Approved by the Madison Redevelopment Commission, the agreements with Hackberry Property Investments, LLC for the Madison Woods development, located on the eastside of the hilltop near Ivy Tech Drive, and Tony and Lisa Hammock for the Koehler Farms development, located on the westside of the hilltop near Clifty Falls State Park, represent the latest milestone in Mayor Courtney's comprehensive housing strategy. Together, the projects will provide a diverse mix of single-family homes, patio homes, duplexes, townhomes, market-rate apartments, parks, trails, and community amenities designed to meet Madison's growing housing demand.

"Housing continues to be one of the greatest challenges facing communities across Indiana," said Mayor Bob Courtney. "If we want Madison to continue attracting families, supporting our workforce, and creating opportunities for future generations, we have to invest in housing."

Recognizing that a healthy housing market is essential to attracting employers, supporting workforce growth, and strengthening neighborhoods, the City has taken a comprehensive approach that includes strategic redevelopment partnerships, neighborhood reinvestment, infrastructure improvements, blight elimination, and incentives for new residential construction. The newly approved agreements continue that momentum.

The Madison Woods development is planned as a multi-phase neighborhood featuring single-family homes, duplexes, townhomes, patio homes, market-rate apartments, parks, trails, and community amenities. The agreement also includes several community-focused commitments, including collaboration with Habitat for Humanity to provide opportunities for affordable homeownership, a playground for all ages and public park space, public art, and the use of local contractors whenever possible. The City will provide performance-based infrastructure incentives of up to $750,000, with reimbursements made only after construction milestones are achieved and verified.

The Koehler Farms development will include patio homes, duplexes, townhomes, and single-family residences. The development includes a new boulevard entrance from Clifty Drive, sidewalks, utilities, stormwater improvements, landscaping, and a public trail easement along Little Clifty Creek for potential future recreational opportunities. The City's participation is capped at $500,000 and is similarly tied to strict construction milestones and infrastructure completion.

"Our Redevelopment Commission has worked diligently to structure agreements that encourage investment while ensuring accountability," Deputy Mayor Tony Steinhardt said. "These are performance-based partnerships. Public dollars are only invested after results are delivered."

Both EDAs contain robust accountability measures designed to protect taxpayers. Incentive payments are earned only after specific milestones are completed, verified, and approved by the Madison Redevelopment Commission. Both developers are also required to provide personal guarantees, submit regular progress reports, cooperate with annexation efforts, and comply with detailed development standards. The agreements include clawback provisions that allow the City to recover public funds if developers fail to meet their obligations.

These projects are part of a broader housing strategy that focuses on expanding quality housing opportunities for residents across a wide range of income levels. In recent years, the City has expanded the PACE (Preservation and Community Enhancement) Grant Program, accelerated blight elimination efforts, strengthened policies addressing vacant and abandoned properties, secured funding for an Owner-Occupied Rehabilitation Program, and worked to identify underutilized land that can be repositioned for future residential development.

"Housing doesn't happen by accident," Mayor Courtney said. "It requires planning, partnerships, and a willingness to invest in our future. These developments represent real progress, but they also represent our commitment to making sure people who want to call Madison home can find a place to live. Through strategic public-private partnerships, the City is supporting everything from affordable homeownership and workforce housing to market-rate rental communities and new single-family neighborhoods, ensuring Madison offers housing options for individuals and families at every stage of life.”

Both property owners have agreed to voluntarily annex their developments into the City of Madison. Following approval of the annexation resolutions and completion of the planning, engineering, and permitting requirements outlined in their respective agreements, construction on both Madison Woods and Koehler Farms is expected to begin before the end of the year.