Fiscal Note
The total value of the three CDA properties involved in this transaction is $2,185,000, including the $285,000 price offered by Meriter on the 315 South Brooks property. Together, these properties provide security for outstanding mortgage debt totaling $2,098,523. Upon completion of the sale to Meriter, the value of the remaining two properties would be $1,900,000, or approximately $198,000 less than the current debt. $212,750 of this outstanding debt will be paid off with proceeds from the 315 South Baldwin sale.
This resolution authorizes the transfer of the remaining debt to the two remaining CDA properties, leaving total outstanding debt of $1,885,773, about $14,000 less than the estimated value of the properties. (Please see attached spreadsheet with details of the proposed transaction.)
Title
Authorizing the transfer of the balance of a Capital Revolving Fund Loan from a CDA-owned property located at 315 South Brooks Street to CDA-owned properties located at 601 South Baldwin, 612-632 East Dayton Street and 202 North Blount Street.
Body
The CDA owns a residential property with two rental units located at 315 South Brooks Street (the "Property"). The CDA acquired title to the Property and two other properties located at 601 South Baldwin Street ("South Baldwin") and 612-632 East Dayton Street and 202 North Blount Street (collectively "The Reservoir") in 1995 from the former Madison Mutual Housing Association. The CDA has accepted a Residential Offer to Purchase (the "Offer") from Meriter Hospital, Inc. ("Meriter") to purchase the Property to accommodate its future expansion plans.
The Property is encumbered by mortgages for a Section 17 loan ($10,000), a CDBG loan ($134,750) and a Madison Capital Revolving Fund (CRF) loan (approximately $431,000 including principle and interest). The CDBG and CRF mortgages also encumber the South Baldwin and The Reservoir properties. As a condition of the Offer, the CDA is required to remove t...
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