Fiscal Note
No additional expenditure required.
Title
Amending Res-22-00564 Authorizing a Loan Agreement for a $2,100,000 TIF loan to Madison Interstate East, LLC for a three-phased industrial project located at 2930 and 3030 Ohmeda Drive (16th A.D.).
Body
WHEREAS, on August 31, 2021, the Common Council approved a loan agreement to fund a $2,100,000 TIF loan to Madison Interstate East, LLC ("Developer"), or its assigns, for a three-phased industrial project located at 2930 and 3030 Ohmeda Drive in the recently adopted TID 49 (Femrite Drive) boundary (Legistar #66652, RES-21-00604); and,
WHEREAS, three payments are to be made to fund three phases of the project over time; and,
WHEREAS, the Common Council authorized an amendment to the RES-21-00564 (together with RES-21-00604, the “Resolution”) to provide an extension to the project commencement deadlines; and
WHEREAS, the Developer is seeking a tenant which, if secured, would require a slightly larger Project A, and change the development from a three phase development (Projects A, B, and C) into a two phase development (Projects A and B), which would provide a faster return on the City’s investment due to a slightly larger project and advanced construction schedule; and
WHEREAS, City staff seeks the option of amending Sections 4 and 5 of the Resolution in order to accommodate the changes stated above if Developer can secure the tenant.
NOW, THEREFORE, BE IT RESOLVED that Res-22-00564 is amended to provide that, at the City’s option, if the Developer secures the tenant requiring a larger Project A than currently anticipated, the City staff is authorized to structure the Loan Agreement to accommodate such request subject to the following conditions:
1. The new Projects A and B will add more, rather than less, total building size; and
2. The projected increment from the new Projects A and B is equal to or greater than the current projected increment.
BE IT FURTHER RESOLVED that, subject to the approv...
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