Fiscal Note
This resolution would authorize a $250,000 end loan from the Madison Capital Revolving Fund to Sherman Plaza, Inc. for the improvements to the building located at 1865 Northport Drive. 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 seven (7) years, amortized over fifteen (15) years at an interest rate of 5% fixed, with a balloon payment of principal and interest due at note maturity. The Borrower shall make quarterly principal and interest payments. The Borrower’s obligation to repay would be secured by a second mortgage security on the property located at 1865 Northport Drive. The Borrower shall provide the City with the personal guaranties of David W. Bruns and Donald B. Bruns for the MCRF Loan. The Capital Revolving Fund has an estimated fund balance of $865,000 of which $500,000 was authorized for MCRF loans in the 2012 Operating Budget. To date, the City has closed one (1) loan in the amount of $120,000 authorized in 2011. The MCRF loan fund balance is sufficient to fund this amount without additional borrowing.
Title
Authorizing the Mayor and City Clerk to execute an agreement to fund a $250,000 Madison Capital Revolving Fund loan to Sherman Plaza, Inc. to assist in making tenant improvements to the building located at 1865 Northport Drive.
Body
WHEREAS, on May 19, 1987 the Common Council accepted a report by the Madison Capital Revolving Fund Task Force recommending the creation of a Madison Capital Revolving Fund (MCRF); and
WHEREAS, the Community Development Authority (CDA) has been designated as agent of the City of Madison for the operation and administration of the Program; and
WHEREAS, on April 16, 1996, the Common Council accepted the MCRF objectives and criteria as proposed by the CDA; and
WHEREAS, Sherman Plaza, Inc. (the “Borrower”) has proposed to make tenant improvements t...
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