Fiscal Note
The City has made three separate loans totaling $970,000 to Genesis based on earlier Council approvals, two for acquisition of 313 West Beltline Highway and one for a series of renovation projects. Two of these loans are deferred payment, due on sale or change in use of the building; one is structured as an installment loan with payments deferred for five years, at which point the CDBG Commission and Council would decide whether to require the beginning repayments or conversion to a similar deferred payment status. In December of 2004, an additional resolution adopted by the Council allowed for the subordination of those loans to new first and second mortgages and deferred the beginning of the installment loan repayment until 2012. This would permit Genesis to refinance its first mortgage loan with a more favorable loan through New Market Tax Credits (NMTC). That refinancing would also result in $10,000 per year in interest to be paid to the CDBG program during the period of the NMTC. In December, the terms of the first and second mortgages had not been finalized, but it was expected that the total of the super-ordinate debt would increase from $1,817,000 to $1,900,500. This resolution would revise the December resolution and permit the City to use the proceeds from the immediate Genesis repayment of the three loans for a new loan to the Dane Fund and two subsequent investment entities qualifying under the NMTC, and for them to make a NMTC qualifying loan to Genesis.
Title
Revising a December 14, 2004 resolution that altered the repayment terms from three existing CDBG Loans totaling $970,000 to Genesis Development Corporation to permit a refinancing with New Market Tax Credits, and authorizing the Mayor and the City Clerk to sign agreements to effect such a change through the Dane Fund and an entity qualifying under the NMTC laws.
Body
WHEREAS the City Council approved two loans to Genesis Development Corporation to help the group purchase 31...
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