Fiscal Note
The proposed resolution would authorize a $400,000 loan to Bayview Foundation, Inc. from the Community Facilities Loan (CFL) Program (MUNIS project 13944). The CFL program was established in the Community Development Division’s (CDD) 2022 Capital Budget, which allocated $1 million in GO Borrowing to support smaller capital projects proposed by non-profit partners to meet facility needs. No funds were expended in 2022, and the unused amount was reauthorized in the 2023 budget. CFL program guidelines set at maximum loan amounts for construction projects of the lesser of $400,000 or 20% of total eligible project costs. As of July 25, 2023, three CFL loans have been approved by the Common Council: one for $400,000 (RES-23-00125, File 75563), the second for $68,000 (RES-23-00191, File 76394) and the third for $87,000 (RES-23-00411, File 77544). No additional City appropriation is required.
Title
Authorizing a loan of up to $400,000 to Bayview Foundation, Inc. from the Community Facilities Loan Program to help finance the construction of community center programming space at 601 Bay View, and authorizing the Mayor and City Clerk to enter into a contract for that purpose. (District 13)
Body
WHEREAS, the City of Madison’s Community Facilities Loan (CFL) Program provides low-cost financing to support non-residential development projects undertaken by non-profit organizations in the City of Madison that involve the acquisition and/or substantial improvement of a property; or the redevelopment, improvement or rehabilitation of property an eligible organization already 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, Bayview Foundation, Inc. is undertaking a substantial, multi-phase redevelopment of its affordable housing properties in the Triangle neighborhood, which includes the replacement of its community center; and,
WHEREAS, Bayview Foundation, Inc. has applied to the CFL Program for assistance to help finance the construction of the center that will offer programming space at 601 Bay View and increase its capacity to provide services to its constituents at the Triangle and beyond; and,
WHEREAS, per the CFL Program guidelines, Bayview Foundation, Inc. intends to provide programming and other activities at the community facility primarily for the benefit of low and moderate income households, and meets all other eligibility requirements of the CFL Program; and,
WHEREAS, Bayview Foundation, Inc. presents a total project budget of approximately $7.6 million and the CFL Program guidelines limit offers of financial assistance for improvements to not more than the lesser of $400,000 or 20% of total eligible project costs; and,
WHEREAS, funds under the CFL Program are offered to awardees in the form of a zero percent long-term deferred loan, repayable upon the sale or change of use of the property.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council authorizes a $400,000 loan from the Community Facilities Loan Program to Bayview Foundation, Inc, or an affiliate LLC, for its use in financing the development of the Community Center located at 601 Bay View, Madison; and,
BE IT FURTHER RESOLVED that, that the Council authorizes the Mayor and City Clerk to enter into a contract with Bayview Foundation, Inc, or an affiliate 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 purpose of this Resolution, and to comply with and perform the obligations of the City hereunder.