Fiscal Note
No appropriation required. This resolution does not change the original TIF loan amount of $5 million.
Title
Authorizing a Material Change in the Phase Loan Agreement for Phases 3 and 4 of the Union Corners Development.
Body
WHEREAS, on October 30, 2013 the City of Madison (the “Seller”) executed a Purchase and Sale Agreement (the “PSA”) with Gorman & Company, Inc. (the “Developer”) for the conveyance and redevelopment of properties owned by the City located at 2504, 2507 and 2340 Winnebago Street, Madison, WI (collectively, the “Development”) for a mixed-use redevelopment project. Under the terms of the PSA the Buyer was required to develop the Property in four phases; and
WHEREAS, the First Amendment to the PSA, which among other items, provided that the number of phases be increased from four to six. In the Second Amendment to the PSA, only Phases 1 through 4 were acquired by the Buyer (hereinafter, “PSA” shall refer the original PSA and all amendments); and,
WHEREAS, on July 7, 2015, the Common Council approved a TIF loan of five million dollars ($5,000,000) (the “Master TIF Loan”) to the Developer in accordance with the PSA under enactment RES 15-00575 (the “Resolution”); and,
WHEREAS, the Resolution permitted the TIF Loan to be apportioned to each phase of the Development (collectively the “Phase Loans”, individually the “Phase Loan”); and,
WHEREAS, Section 16 of the Resolution provided that Phase Loans do not require Common Council approval as long as the terms did not materially change from the terms of the Master TIF Loan; and,
WHEREAS, Section 6 of the Resolution permitted the Developer to transfer ownership of any Phase to a Gorman, LLC, which is a corporate entity of which Developer is a member; and,
WHEREAS, Phases 3 and 4 are to be used as affordable housing and commercial uses and will use Low-Income Housing Tax Credits (“LIHTC”) to assist in the financing for the Phases; and,
WHEREAS, the corporate structure of the entity ...
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