Fiscal Note
The proposed resolution terminates the TIF Loan to a Stone House Development affiliate for the Madison Mark Project located at 132 E Wilson Street and defers an $875,000 Equity Participation Payment to 2035. Stone House Development is refinancing the Project and requests the Equity Participation Payment be deferred in exchange for maintaining Affordable Units for 15 years. The TIF Loan has otherwise been repaid and all obligations outside of the Equity Participation Payment have been satisfied. The City will enter into a new land use restriction agreement with Stone House Development, which will remain in effect until 2035 and will require the Project to maintain the same affordability provisions as currently exist and require the Equity Participation Payment to be made in 2035. The Project is located in TID #25, which will close in 2022; this resolution will not affect that closing.
Title
Authorizing the Deferral of an $875,000 Equity Participation Payment for the Madison Mark Project in Execution of a Land Use Restriction Agreement to Maintain Affordable Units for an Additional Fifteen Years.
Body
WHEREAS, in 2002, by RES 02-59984 (File #32913) Common Council authorized a One Million Dollar ($1,000,000) TIF Loan (the “TIF Loan”) to King Street Apartments, LLC, an affiliate of Stone House Development (the “Developer”), for the project known as Madison Mark located at 132 E. Wilson St. in Madison (the “Project”); and,
WHEREAS, in accordance with policy at the time, the TIF Loan contained an equity participation payment of Eight Hundred Seventy Five Thousand Dollars ($875,000) (the “Equity Participation Payment”); and,
WHEREAS, the TIF Loan also contained an affordability provision requiring that the project contain fifty-seven (57) affordable units, (the “Affordable Units”) in accordance with Section 42 tax credit requirements, for a period of 15 years from the date of certificate of occupancy (“COO”); and,
WHEREAS, the Developer now seeks to r...
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