Fiscal Note
The resolution requires an amendment to the 2011 Adopted Budget for the Department of Planning, Community and Economic Development to reflect $1.5 million in loan proceeds received from the Wisconsin Department of Natural Resources (DNR) and an equal appropriation amount for the payment to the developer. The loan conditions require that the City provide a general promissory note that pledges the full faith and credit of the City to repay the $1.5 million loan from DNR in the event that the loan is not repaid by the developer.
The promissory note will require that the City designate a portion of general fund reserves equal to the remaining principal on the loan until it is repaid. The undesigned general fund balance as of December 31, 2010, is $29.6 million. The initial designation of $1.5 million represents 5% of the the undesignated balance. As the loan principal is repaid by the developer, the amount set-aside in the general fund balance will be reduced.
Title
Authorizing the acceptance of a loan in the amount of $1.5 million from the Wisconsin Department of Natural Resources and the issuance of a general obligation promissory note for the purpose of assisting in the remediation and demolition of the former Royster Clark property, and authorizing the loaning of such funds to RDC Development, LLC.
Body
The Wisconsin Department of Natural Resources (DNR) administers the Ready to Reuse Program under which it offers zero interest loans to local governments to help clean up environmental contamination at eligible brownfield sites. On behalf of RDC Development, LLC (“Developer”) the City applied to the DNR for a Ready to Reuse loan to assist Developer in the remediation and demolition of the former Royster Clark property (the “Property”). The City’s application was approved, and the DNR has agreed to loan the City up to $1.5 million (the “Loan”). The Loan is zero interest and matures in 2026. A Schedule of Payments is set forth below. To secure ...
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