Fiscal Note
The proposed resolution authorizes loan agreements totaling $650,000 of Madison Capital Revolving Fund loans to Tribe 9 Foods, LLC to assist with the purchase of food manufacturing equipment. The assistance consists of two loans; Loan #1 is for $250,000, bearing 0% interest for a term of 6 years. Should the borrower meet certain job requirements, $50,000 will be forgiven each year, and if the threshold of jobs is met for each of the five years, the total loan amount will be forgiven. If the threshold is not met in any year, the balance will be due to the City at the sixth anniversary of the issuance of the loan. The second loan is for $400,000 bearing 2% interest for a term of 6 years with a 10-year amortization. Borrower will make quarterly payments of principal and interest with a balloon payment of the remaining balance due at the sixth anniversary of the issuance of the loan.
The balance of the Capital Revolving Fund is $1,143,908. Should this loan be approved, and taking into consideration the previously approved $35,000 loan to Regent Market Cooperative, and the budgeted Façade Grant Program, the Fund will have an ending balance of $514,908.
Title
Authorizing the Mayor and City Clerk to execute loan agreements to fund a total of $650,000 of Madison Capital Revolving Fund loans to Tribe 9 Foods, LLC to assist with the purchase of food manufacturing equipment at a facility to be located at 2901 Progress Road; and, amending the 2017 Madison Capital Revolving Fund budget to add an additional $650,000 of loan expenditure authority.
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 obj...
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