Fiscal Note
The proposed resolution authorizes the use of $250,000 of American Rescue Plan Act (ARPA) funds remaining the in Small Business Equity & Recovery Program 13072 (Munis Project 13658).
Previous Commercial Ownership Assistance grants utilizing ARPA funds include:
Smart Cleaning Solutions, LLC ($250,000, RES-23-00126, Leg file 75569)
Dane County Family Acupuncture ($250,000, RES-23-00419, Leg file 77771)
Isthmus Wellness ($250,000, RES-23-00555, Leg file 78826)
Golden Vibes Counseling Center ($200,000, RES-24-00155, Leg file 81906)
No additional City appropriation required.
Title
Providing CocoVaa Chocolatier or its assigns a $250,000 loan to purchase a commercial property at 10 Odana Court through the Commercial Ownership Assistance program under the Small Business Equity and Recovery Program (SBER) using the American Rescue Plan Act of 2021 (ARPA) aid Local Fiscal Recovery funds and authorizing the Mayor and City Clerk to sign an agreement with CocoVaa Chocolatier or its assigns for that purpose. (District 19)
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, CocoVaa Chocolatier a Women and Black owned business that will operate its business out of this location. The business is committed to satisfying the most primal instinct in us as humans - to eat- by creating a complete sensory symphony of confectionery bliss and has been doing so for over six years; and
WHEREAS, CocoVaa Chocolatier will utilize Commercial Ownership Assistance funds to assist with the acquisition of the property located at 10 Odana Court, 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 $250,000 of Commercial Ownership Assistance Funds to this project.
NOW, THEREFORE BE IT RESOLVED, that the Common Council authorizes a $250,000 Commercial Ownership Assistance Program Loan to CocoVaa Chocolatier and/or its assigns for the purchase of the property at 10 Odana Court; 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.