After months of study, a special city committee is recommending a proposal by the Fiore Cos. to build a $43.6 million, six-story glass and brick Downtown library at the corner of Henry Street and West Washington Avenue.

 But as the Madison Library Board and City Council prepare to consider the recommendation, the big question remains whether the city can afford it.

The city budget commits $1.7 million to a library this year and foresees spending $18.3 million in 2010. That leaves a $23 million gap that the city would have to commit to covering up front.

"It’s something I want to explore," Mayor Dave Cieslewicz said after the committee’s vote. "It’s too exciting a project and too important for the Downtown to simply rule it out."

If the project moves forward, Fiore and partner Igrens Development Partners of Milwaukee would demolish the worn library on the 200 block of West Mifflin Street and build a 380,000-square-foot mixed-use project with a hotel, retail space and 425 parking spaces. The total cost of Fiore’s project is estimated at $80 million.

"The city has an opportunity here to replace this tired old facility with a new library. ... We think we can do it with very little cost to the taxpayer," Fiore executive vice president Bill Kunkler said after the committee’s decision.

The seven-member committee unanimously but narrowly chose Fiore’s proposal over one by T. Wall Properties, which called for a $38.2 million, nine-story, glass and stone mixed-use project on the current library site.

Sean Robbins, senior vice president for Wall, applauded the committee for a fair process and congratulated Fiore. "We wish our friends at Fiore luck," he said.

Under the committee’s scoring system, members gave Fiore 459 of a possible 600 points and Wall 420.

"This was a very difficult choice," committee and Library Board Chairman Tripp Widder said.

The main advantages seemed to be that Fiore offered a free-standing library that had a major presence on West Washington Avenue, Widder said. The library would be next to Fiore’s existing Network222 office tower.

The challenge will be financing, Widder said.

The Library Foundation estimates it can raise $10 million in five years, but for the project to move forward, the city must commit to covering the full $23 million gap up front, Widder said.

Kunkler said the proposal would dramatically increase property taxes generated on the block and that the hotel will bring substantial room tax money. The federal government also has attractive borrowing opportunities.

Committee members Greg Markle and Ald. Mike Verveer said the city should explore using room tax and all borrowing options. Cieslewicz said low construction costs could also bring savings.

The Library Board will consider the proposal on June 4.

The mayor expects the council to consider the project in the capital budget process starting in September.