Fiscal Note
The proposed resolution authorizes a loan of up to $300,000 to the Urban League of Greater Madison for the buildout of a shared commercial kitchen and related improvements at the Black Business Hub located at 2352 South Park Street. The loan is part of the Community Facilities Loan Program (Munis project 13672/2024 project 14971), administered by the Community Development Division (CDD). CFL program guidelines set as a maximum amount for improvements-related loans the lesser of $300,000 or 50% of total eligible project costs, provided in the form of a zero percent long-term deferred loan. Funding is available in CDD's 2024 Adopted Capital Budget ($1.0 million in General Fund-supported GO Borrowing). No additional City appropriation is required.
Title
Approving a loan of up to $300,000 to the Urban League of Greater Madison from the Community Facilities Loan Program to help finance the buildout of a shared commercial kitchen at the Black Business Hub located at 2352 South Park Street; and authorizing the Mayor and City Clerk to sign an agreement for that purpose. (District 14)
Body
WHEREAS, the City of Madison’s Community Facilities Loan (CFL) Program, administered by the City's Community Development Division (CDD), provides low-cost financing to support non-residential development projects undertaken by a non-profit organization in the City of Madison that involve the acquisition of property or substantial expansion, redevelopment, improvement or rehabilitation of property the organization currently owns or leases; and,
WHEREAS, the City’s objective through the CFL Program is to create or improve safe, accessible, energy efficient and well-maintained community and neighborhood facilities; and,
WHEREAS, the Urban League of Greater Madison (ULGM) has applied to the CFL Program for financial assistance to help build a shared commercial kitchen space at the Black Business Hub located at 2352 South Park Street, which will support programming for Black and other entrepreneurs of color who wish to launch or grow a small food business by providing a facility they can use, as needed, at affordable rents; and,
WHEREAS, per the CFL Program guidelines, ULGM intends to provide programming and other support at the community facility primarily to low-income households, and meets all other eligibility requirements of the CFL Program; and,
WHEREAS, ULGM's submitted proposal presented a total project budget of approximately $780,000, and the CFL Program guidelines offer financial assistance for improvements in an amount of up to the lesser of $300,000 or 50% of total eligible projects costs; and,
WHEREAS, funds under the CFL Program are provided to awardees in the form of a zero percent, long-term deferred loan, repayable upon the sale or change in use of the property;
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves a loan of up to $300,000 from the Community Facilities Loan Program to the Urban League of Greater Madison for the buildout of a shared commercial kitchen facility at 2352 South Park Street in Madison; and,
BE IT FURTHER RESOLVED, that the Council authorizes the Mayor and City Clerk 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.