Fiscal Note
The proposed resolution authorizes a loan of up to $80,000 to FNB Properties, LLC from the Community Development Division's (CDD) Child Care Facilities Loan Program (Munis program 14969 / 2025 project 17912). CDD’s 2025 Adopted Capital Budget authorized $250,000 for the program in 2025. If approved by the Council, this loan would be funded by budget carried forward from 2025. No additional City appropriation is required.
Title
Approving a loan of up to $80,000 from the Community Development Division’s Child Care Facilities Loan Program to FNB Properties, LLC to help finance building improvements at a property, located at 4657 Verona Road, necessary to develop space useable for childcare programming; and authorizing the Mayor and City Clerk to enter into agreements with that organization to support the specified project. (District 10)
Body
Background
The City of Madison’s 2025 Adopted Capital Budget authorized up to $250,000 for the Community Development Division’s Child Care Facilities Loan Program to support efforts to establish, expand or sustain spaces for local childcare providers, particularly in areas of the City where childcare is relatively scarce. The Program makes funds available to non-profit or for-profit entities looking to establish or expand a regulated group childcare program.
Action
WHEREAS, the City of Madison’s 2025 Adopted Capital Budget authorized $250,000 to support the Community Development Division’s Child Care Facilities Loan Program; and,
WHEREAS, the Child Care Facilities Loan Program provides low-cost financing to support non-residential development projects that involve the acquisition of property, or substantial expansion, improvement, or rehabilitation of property an organization currently owns or leases for use for childcare programming; and,
WHEREAS, the City’s objective through the Child Care Facilities Loan Program is to create or expand resident access to high-quality childcare and increase the available supply of infant and toddler care for Madison residents; and,
WHEREAS, funds are available to either non-profit or for-profit entities looking to establish or expand a regulated group childcare program, particularly in areas of the City where childcare is relatively scarce; and,
WHEREAS, funds awarded from the Child Care Facilities Loan Program are offered in the form of a loan that is forgiven after 5 years so long as the property for which funds are awarded is used for a regulated childcare program for at least 5 years from the date of project completion, but is repayable if the property is sold, its use changes, a lease is terminated or for any other reason the childcare program does not continue for at least 5 years from the date of completion of the project; and,
WHEREAS, the Community Development Division received a request from FNB Properties, LLC, to help finance building improvements needed for leased childcare space at a property located at 4657 Verona Road in Madison (53711); and,
WHEREAS, the project is consistent with the goals and requirements set forth in the Child Care Facilities Loan Program; and,
WHEREAS, if awarded funds, the applicant will be subject to all of the Child Care Facilities Loan Program guidelines as well as applicable City zoning and land use requirements; and,
WHEREAS, under Program guidelines, up to 80% of improvement costs, not to exceed $80,000, are eligible for support; and,
WHEREAS, identified project costs total $174,000, making the project eligible to receive an award of up to $80,000.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves a loan of up to $80,000 to FNB Properties, LLC to help finance proposed leasehold improvements to the property at 4657 Verona Road, which will create space for childcare programming at that site; and,
BE IT FURTHER RESOLVED, that the Council authorizes the Mayor and City Clerk, on behalf of the City, to enter into a loan agreement with FNB Properties LLC, and to execute, deliver, publish, file, and record such other documents, instruments, notices, and records, and take such other actions as shall be deemed necessary or desirable to accomplish the intent of this Resolution, and to comply with and perform the obligations of the City.