MADISON, Wis. -- Madison city officials unveiled plans on Monday to include funding for a new central library in the city's proposed capital budget.

Mayor Dave Cieslewicz, along with members of the city's Library Board, union labor and library supporters, announced the plan at a press conference at the existing Central Library on Monday. The multi-million plan would include constructing a new library building at the corner of West Washington Avenue and Henry Street while selling the current Central Library site for "further development," according to a news release issued by the mayor's office.

The plan is the mayor's second expensive capital budget commitment in less than a week. Last week, he said he's seeking $16 million in "TIF" financing to help expand the Edgewater Hotel.

Cieslewicz said he supported the Fiore Companies' $88 million library block redevelopment proposal and is committing to its $37 million library plan in his capital budget. It will include $17 million in city borrowing and $6 million in tax credits to help erect a six-story glass and stone structure near the current site. The project also banks on $10 million in public donations.

The library plan would be the second largest city building project since the Monona Terrace Convention Center, WISC-TV reported.

The current, 45-year-old Central Library is falling apart. Data and other wires are a jumbled mess on the ceiling while buckets full of water in the back reveal an old, broken cooling system. The boiler is the original -- installed in 1964. No wonder, then, that those who work in the library can hardly believe they might get a new one:

"We're almost afraid to be excited," said library director Barb Dimick. "You know, we've tried before and for economic reasons just couldn't be done and now that there is a possibility, everybody is so excited."

Despite tough economy times, the mayor said the time is right to build new and build big.

"This library is really just indicative of the way we need to respond to the recession. Not by pulling back, not by being cautious, but by being bold and getting aggressive," he said. "This is the time to do it. I don't want to wait another year or two years. The economy's going to be recovering by then. The ability to get really good bid prices is not going to be with us forever."

In the news release, Cieslewicz said that building the new library now would take advantage of low construction costs, create local jobs and boost the tax base by opening the library's current location for new development. Officials said that they will be able to build the new library for the same net cost over 15 years as renovating the current library. They said that they also expect the project will create 200 to 300 construction jobs.

"This is a project that will add significant value to our city and help to positions us to take advantage of the economic recovery," the mayor was quoted as saying in the release.

What's still unresolved is Fiore's intent to put up a 140-room hotel at the current library site. A recent downtown hotel study said it should wait until other new hotel rooms are absorbed and how it will fit into the whole library block is still unclear.

Fiore developer Bill Kunkler said that corner could become condos, or apartments or retail in addition to the company's plan to build the hotel.

The mayor's stance is unclear on that aspect of the proposal. He said he supports a hotel but at the same time, cites the hotel study.

The mayor's plan will be submitted to the city's Common Council on Tuesday. The council is expected to vote on a final budget plan in November, officials said.

Stay tuned to WISC-TV and Channel 3000 for continuing coverage.