Fiscal Note
The proposed resolution authorizes a $53,750 loan to Madison Acupuncture and Bodywork LLC for the purchase of property located at 4001 Nakoosa Trail, Suite 203. The proposed loan will be funded by the Economic Development Division’s Small Business Equity and Recovery (SBER) capital program. The SBER capital program has approximately $3.03m of remaining budget authority. No additional City appropriation is required.
Title
Providing Madison Acupuncture and Bodywork LLC or it assigns a $53,750 loan to purchase a commercial property at 4001 Nakoosa Trail Suite 203 through the Commercial Ownership Assistance program using the Small Business Equity and Recovery Program (SBER) funds and authorizing the Mayor and City Clerk to sign an agreement with Madison Acupuncture and Bodywork LLC for that purpose. (3rd AD)
Body
WHEREAS, business and property ownership is a vital pathway to economic empowerment. For Madison to make meaningful progress in addressing racial and gender disparities the City must go beyond programs focused on addressing basic needs, and direct more resources and strategies toward building wealth and economic empowerment among communities that are not sharing in the City’s prosperity; and
WHEREAS, Madison Acupuncture and Bodywork LLC is a 100% women owned business that will operate its businesses out of this location. The business offers personalized, integrative, holistic medicine and treatments with being in operation for over nine years; and
WHEREAS, Madison Acupuncture and Bodywork LLC would utilize Commercial Ownership Assistance funds to assist with the acquisition of the property located at 4001 Nakoosa Trail Suite 203 , hereby meeting the requirements of the Commercial Ownership Assistance (COA) Program; and
WHEREAS, the COA program guidelines stipulate these funds can be no more than 25% of the total project package and all loan repayments are deferred until sale, cash-out refinance for other than property improvements, and the property is transferred or ceases to be a location for a business owned by the borrower. If any of the above happen within the first 7 years repayment of the full amount is required. If any of the above happen between years 7-15 repayment of one-half the borrowed amount will be required. If the applicant still owns the property after year 15, the original loan amount will be forgiven. There will be no interest rate; and
WHEREAS, the Director of the Department of Planning, Community, and Economic Development recommends an investment of $53,750 of Commercial Ownership Assistance Funds to this project.
NOW, THEREFORE BE IT RESOLVED, that the Common Council authorizes a $53,750 Commercial Ownership Assistance Program Loan to Madison Acupuncture and Bodywork LLC and/or its assigns for the purchase of the property at 4001 Nakoosa Trail Suite 203; and
BE IT FINALLY RESOLVED that the Mayor and City Clerk are hereby authorized to execute a loan agreement and/or any other documents as may be necessary to effectuate the transaction, all of which are subject to the approval of the City Attorney.