City of Madison - File #: 23628

• File #: 23628
• Version: 1
• Name: 9469 Amending RES 11-00538 File ID 22622 TOP Cleaners
• Type: Resolution
• Status: Passed
• File created: 8/17/2011
• In control: Economic Development Division
• On agenda: 9/6/2011
• Final action: 9/6/2011
• Enactment date: 9/7/2011
• Enactment #: RES-11-00758
• Title: Amending RES 11-00538 (File ID 22622 and authorizing the Mayor and City Clerk to execute an agreement to fund a Madison Capital Revolving Fund loan to TJ’s Taylor’s One Price Cleaners, Inc. to purchase machinery and equipment and renovate the property at 4522 Verona Road into 8,800 SF of commercial space.
• Sponsors: Brian L. Solomon

Date	Ver.	Action By	Action	Result
9/6/2011	1	COMMON COUNCIL	Adopt Under Suspension of Rules 2.04, 2.05, 2.24, and 2.25	Pass
8/29/2011	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT UNDER SUSPENSION OF RULES 2.04, 2.05, 2.24, & 2.25 - REPORT OF OFFICER	Pass
8/18/2011	1	Economic Development Division	Referred for Introduction

Fiscal Note
This resolution amends the total project cost and adds a requirement that disbursal of the Madison Capital Revolving Fund (MCRF) loan would be contingent upon the Borrower’s receipt of a $75,000 loan from the Wisconsin Department of Commerce or its assigns and authorizes the Mayor and City Clerk to sign a lender’s application for a loan guaranty from the Wisconsin Housing and Economic Development Authority (WHEDA). Prior to the loan disbursement, a private donor shall contribute $25, 000 to the project to make up the shortfall in the commerce loan.

The terms of the MCRF loan are otherwise identical to those of the original resolution, authorizing 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 shall be provided upon satisfactory completion of the project in conformance to the terms and conditions of the MCRF Loan, as stated herein.

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. Interest rate shall 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 shall be payable to the City of Madison on the fifth anniversary of the execution of the Note. The Borrower shall make annual principal and interest payments with a balloon payment of principal an...