Fiscal Note
The proposed resolution authorizes a sole source contract with Madison Development Corp. to provide loan administration services to small businesses located within the boundaries of any TIDs (and if applicable, the Half-Mile Rule boundary of TIDs) that have included in their current or future project plans a Small Cap TIF program for small business assistance. No additional City appropriation is required.
MDC will market the program to eligible small business borrowers, conduct credit review and underwriting, secure approval by its loan committee and submit a Loan Summary Report to the City that will be included in an authorizing resolution introduced to the Common Council referred to the Finance Committee and reported to Common Council for final consideration and approval.
MDC will charge loan service fees, paid with TIF proceeds, calculated as 15% of each Small Cap TIF loan authorized. Total MDC service fees for all Small Cap TIF services under this contract shall not exceed $300,000.
Title
Authorizing the Mayor and City Clerk to execute a sole service contract with Madison Development Corp. to administer a Small Cap TIF loan program to provide financial assistance to small businesses located within eligible Tax Increment Districts. (Citywide)
Body
WHEREAS on July 11, 2023 the City of Madison adopted RES 23-00470 authorizing the Mayor and City Clerk to execute a sole source service contract with Madison Development Corp. (“MDC”) to administer a Small Cap TIF loan program (the “Program”) to provide financial assistance to small businesses located within TID 51 (South Madison) and its Half Mile Rule boundary and to small businesses located within the TID boundaries of all TIDs created hereafter, including Half Mile Rule boundaries, that include a Small Cap TIF program for small business in their respective project plans; and,
WHEREAS, MDC is also currently contracted with the City to administer a Business Loan Program (“BLP”) utilizing Community...
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