Fiscal Note
The proposed resolution approves a Small Capital Loan grant totaling $90,000 to convert property at 515 E Mifflin Street from rental property to owner occupied. The 2017 Adopted Capital Budget includes $440,000 for the State Street District Improvement Retail Grant and Small Capital Loan Programs. The retail grant program has awarded $132,242.30 to date and disbursement of $90,000 for the proposed small capital loan will leave a balance of $217,757.70. This grant program is funded by Tax Increment District 32.
Title
Approving a Small Cap TIF #32 Mansion Hill-James Madison Park Neighborhood loan of up to $90,000 to Peter Linsmeier Borrower for the purchase and renovation of the property located at 515 E. Mifflin Street, Madison, WI and its conversion from rental to owner-occupied housing; and authorizing the Mayor and City Clerk to execute a loan agreement with the Borrower to effectuate this transaction.
Body
BACKGROUND
The Mansion Hill-James Madison Park Neighborhood program, part of the approved plan for Tax Incremental District #32 (Upper State Street) was created on January 2011 (RES-11-00042, Legistar #20749) for the purpose of assisting with conversion of deteriorating rental housing into renovated owner occupied housing. The program was amended on August 2014 (RES-14-00576, Legistar #34644), April 2015 (RES-15-00344, Legistar #37775) and November 2016 (RES-16-00856, Legistar #44934). It provides forgivable loans to eligible borrowers for the purchase and/or renovation of rental properties in the Mansion Hill-James Madison Park Neighborhood.
Loan funds provided through the Program for each renovation project are subject to the following conditions:
? TIF assistance is provided in the form of a 0% interest note secured by subordinated mortgage on the Property, with no debt service payments. Principal balance is forgiven after the completion of renovation work has been verified by the City. A Land Use Restriction Agreement (LURA) is also...
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