City of Madison - File #: 24364

• File #: 24364
• Version: 1
• Name: Authorizing the subordination of previously approved loans to Common Wealth Development and authorizing the Mayor and City Clerk to sign agreements to subordinate the loans.
• Type: Resolution
• Status: Passed
• File created: 10/25/2011
• In control: BOARD OF ESTIMATES (ended 4/2017)
• On agenda: 11/1/2011
• Final action: 11/29/2011
• Enactment date: 12/2/2011
• Enactment #: RES-11-00966
• Title: Authorizing the subordination of previously approved loans to Common Wealth Development and authorizing the Mayor and City Clerk to sign agreements to subordinate the loans.
• Sponsors: Shiva Bidar, Tim Bruer, Matthew J. Phair

Date	Ver.	Action By	Action	Result
11/29/2011	1	COMMON COUNCIL	Adopt	Pass
11/21/2011	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
11/8/2011	1	BOARD OF ESTIMATES (ended 4/2017)	Referred
11/3/2011	1	COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE	Return to Lead with the Recommendation for Approval	Pass
11/1/2011	1	COMMON COUNCIL	Referred
10/25/2011	1	CDBG Office	Referred for Introduction

Fiscal Note

No appropriation is required.  The Resolution authorizes the subordination of previously approved loans to a new first mortgage on three Common Wealth Development properties.

Title

Authorizing the subordination of previously approved loans to Common Wealth Development and authorizing the Mayor and City Clerk to sign agreements to subordinate the loans.

Body

Common Wealth Development is looking to refinance their existing 1^st mortgage loans at 1343 Williamson, 1406 Williamson and 1501 Williamson. They propose to increase their first mortgage amount by $220,000 on a new blanket first mortgage to cover all three properties. The funds will be used to fund their equity contribution for a new rental development.

WHEREAS, the Common Council approved loans to Common Wealth Development for the acquisition of office space and rehabilitation through a Neighborhood Revitalization project.

WHEREAS, the CDD staff has reviewed the request by Common Wealth Development for the City to subordinate its loans to a new first mortgage loan that will provide working capital for Common Wealth Development's rental development at Jenifer, Cantwell and Thornton.

NOW, THEREFORE BE IT RESOLVED, that the Common Council authorize the subordination for the previously approved City loans to Common Wealth Development in the following amounts to a new blanket first mortgage on all three properties of $360,000 and authorize the Mayor and City Clerk to sign agreements to effect such subordination.

1343 Williamson St:       $10,000 funded in 1995

                  $66,264 funded in 1996

1406 Williamson St:       $25,000 funded in 1998

                  $70,000 funded in 1998

1501 Williamson St:       $8,197 funded in 1994