Fiscal Note
This resolution would authorize a $121,440 end loan from the Madison Capital Revolving Fund to TJ’s Taylor’s One Price Cleaners, Inc. $120,000 disbursed to the Borrower for the purchase of machinery, equipment, furniture and fixtures and tenant improvements to the building located at 4522 Verona Road and $1,440.00 disbursed to WHEDA as a one-time application fee to secure a $96,000.00 WHEDA loan guaranty. This resolution would also authorize City of Madison staff to submit an application to WHEDA for said loan guaranty. End loan proceeds will be provided upon satisfactory completion of the project in conformance to the terms and conditions of the MCRF Loan. Terms of the MCRF Loan would be a maximum of five (5) years, amortized over ten (10) years, at an interest rate of the prime rate, floating, at the time of the MCRF Loan closing plus .25%, the first two (2) years payable at interest-only. The interest rate will be re-calculated annually as the prime rate as published in the Midwest Edition of the Wall Street Journal on or about the anniversary of the closing date plus .25%. A balloon payment of remaining principal and interest will be payable to the City on the fifth anniversary of the execution of the Note. The Borrower will make annual principal and interest payments with a balloon payment of principal and interest due in Year five (5). The Borrower’s obligation to repay would be secured by a first UCC lien on the machinery, equipment, furniture, fixtures and tenant improvements except that the City of Madison shall be subordinated to $30,000.000 loan from Madison Gas and Electric for certain energy-efficient machinery and equipment. In addition, the MCRF Loan is contingent upon the City of Madison obtaining the aforementioned WHEDA loan guaranty in the amount of not less than $96,000.00 to further secure the MCRF Loan. The Borrower shall provide the City with a personal guaranty for the MCRF Loan. The 2010 Capital Budget authorized $500,000.00 fo...
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