City of Madison - File #: 07623

• File #: 07623
• Version: 2
• Name: Authorizing the subordination of a previously approved loan to Wexford Ridge Neighborhood Center to a first mortgage holder during the period of construction and authorizing the Mayor and City Clerk to sign agreements to effect such a change.
• Type: Resolution
• Status: Passed
• File created: 9/25/2007
• In control: COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE
• On agenda: 10/16/2007
• Final action: 10/16/2007
• Enactment date: 10/18/2007
• Enactment #: RES-07-01053
• Title: SUBSTITUTE - Authorizing the subordination of a previously approved loan to Wexford Ridge Neighborhood Center to a first mortgage holder during the period of construction and authorizing the Mayor and City Clerk to sign agreements to effect such a change.
• Sponsors: Mark Clear, Marsha A. Rummel, Paul E. Skidmore, Thuy Pham-Remmele, Tim Bruer

Date	Ver.	Action By	Action	Result
10/16/2007	2	COMMON COUNCIL	Adopt	Pass
10/8/2007	1	BOARD OF ESTIMATES (ended 4/2017)	Return to Lead with the Recommendation for Approval	Pass
10/8/2007	2	CDBG Office	Fiscal Note Required / Approval
10/8/2007	2	Finance Dept/Approval Group	Approved Fiscal Note By The Comptroller's Office (SUBSTITUTES)
10/4/2007	1	COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
10/2/2007	1	COMMON COUNCIL	Refer
10/2/2007	1	COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE	Refer
9/26/2007	1	Finance Dept/Approval Group	Approved Fiscal Note By The Comptroller's Office
9/26/2007	1	CDBG Office	Referred for Introduction
9/25/2007	1	CDBG Office	Fiscal Note Required / Approval

Fiscal Note

The City made a loan of $500,000 in CDBG, EDI, and City funds, that is secured with a mortgage on the property, to Wexford Ridge Neighborhood Center to help them construct a new neighborhood center.  The organization now seeks to establish a line of credit for construction with a lender that requires a first mortgage.  This resolution would permit subordination of the $500,000 loan to the lenders $1 million line of credit during the period of construction.  This transaction would move the City position from a total loan to value ratio of 19% to 58%.

Title

SUBSTITUTE - Authorizing the subordination of a previously approved loan to Wexford Ridge Neighborhood Center to a first mortgage holder during the period of construction and authorizing the Mayor and City Clerk to sign agreements to effect such a change.

Body

WHEREAS the Common Council approved a loan to Wexford Ridge Neighborhood Center to help them develop and construct a neighborhood center to better serve their target population and expand their services; and

WHEREAS those efforts have been very successful, enabling the organization to negotiate a land lease for property owned by the Madison School District adjacent to West High School Memorial High School and to complete the necessary predevelopment efforts; and

WHEREAS Wexford has raised 76% of their capital budget to date and are in the process of completing their fundraising campaign for the remaining funds; and

WHEREAS Wexford secured a $1 million line of credit from a lender to assist with construction financing until committed pledges are paid and the remaining fund raised funds are secured; and

WHEREAS the CDBG staff and Commission have reviewed the proposal for the subordination and recommend Council adoption as a way to assist Wexford Ridge Neighborhood Center complete construction within their proposed timeline and limit additional costs due to delayed construction;

NOW THEREFOR BE IT RESOLVED that the Common Council authorize the Mayor and City Clerk to sign agreements to implement the subordination.