City of Madison - File #: 80079

• File #: 80079
• Version: 1
• Name: El Pastor Small Cap TIF Loan
• Type: Resolution
• Status: Passed
• File created: 9/26/2023
• In control: Economic Development Division
• On agenda: 10/17/2023
• Final action: 10/17/2023
• Enactment date: 10/19/2023
• Enactment #: RES-23-00651
• Title: Authorizing a loan to El Pastor, Inc or its assigns in the amount of $212,500 to purchase a commercial property at 2010 South Park Street through the TID 51 Small Cap TIF loan program using TID #51 incremental revenue as authorized in an amendment to the TID #51 Project Plan (RES 23-00208 adopted by the Common Council on March 7, 2023). (District 14)
• Sponsors: Satya V. Rhodes-Conway, Isadore Knox Jr.

Date	Ver.	Action By	Action	Result
10/17/2023	1	COMMON COUNCIL	Adopt	Pass
10/9/2023	1	FINANCE COMMITTEE	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
10/3/2023	1	COMMON COUNCIL	Refer	Pass
9/26/2023	1	Economic Development Division	Referred for Introduction

Fiscal Note
The proposed resolution authorizes a Small Cap TIF Loan in the amount of $212,500 to El Pastor, Inc. to assist the business with the acquisition of the property at 2010 S. Park St. within TID 51.

The TID 51 Project Plan includes $1.5 million for Small Cap TIF Loans. The Common Council approved the TID 51 Project Plan in 2023 (RES-23-00208, Leg file 75809). Council further authorized Madison Development Corporation (MDC) to administer the program in TID 51 (RES-23-00470, Leg file 78323). At loan closing, the City shall disburse an amount equal to 15% of the principal amount of loan to MDC from Program funds for servicing, and 15% of the principal amount of the loan to MDC from Program funds for servicing and closing fees. The aggregate (30%) of all such loan fees for this loan will be $63,750.

The 2023 Adopted Capital Budget includes $3.0 million in tax increment revenues transferred from TID 26 to TID 51. No additional City appropriation is required.
Title
Authorizing a loan to El Pastor, Inc or its assigns in the amount of $212,500 to purchase a commercial property at 2010 South Park Street through the TID 51 Small Cap TIF loan program using TID #51 incremental revenue as authorized in an amendment to the TID #51 Project Plan (RES 23-00208 adopted by the Common Council on March 7, 2023). (District 14)
Body
WHEREAS, the City of Madison has created the boundary and Project Plan for Tax Incremental District (TID) #51 on March 7, 2023 RES-23-00208 (File ID Number 75809); and

WHEREAS, the intent and purpose of the Project Plan, among other things, is to attract and retain business and employment in the South Madison area generally bounded by Fish Hatchery Road, the Beltline Highway, John Nolan Drive, and Murphy Creek; and

WHEREAS, business and property ownership is a vital pathway to economic empowerment and for Madison to make meaningful progress in addressing racial and gender disparities the City must go beyond programs focused on addressing ...