Fiscal Note
The proposed resolution authorizes a Commercial Ownership Assistance Program no-interest loan in the amount of $117,500 to Silk Road Restaurant to purchase a commercial property at 1920 S Park St. The TID 51 Project Plan includes $1.5 million for Commercial Ownership Assistance Program loans. 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 $35,250.
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). Four other Small Cap TIF loans in TID 51 have been approved by Council: $212,500 (RES-23-00651, Leg file 80079), $250,000 (RES-23-00776, Leg file 80813), $80,000 (RES-24-00060, Leg file 81363), and $113,500 (RES-24-00061, Leg file 81366).
No additional City appropriation is required.
Title
Providing Silk Road Restaurant or its assigns a $117,500 loan to purchase a commercial property at 1920 South Park Street through the Commercial Ownership Assistance program funded by the TID 51 Small Business Development programs using TID #51 incremental revenue as authorized in the TID #51 Project Plan (RES-23-00208) adopted by the Common Council on March 7, 2023). (District 14)
Body
WHEREAS, business and property ownership is a vital pathway to economic empowerment. For Madison to make meaningful progress in addressing racial and gender disparities the City must go beyond programs focused on addressing basic needs, and direct more resources and strategies toward building wealth and economic empowerment among communities that are not sharing in the City’s prosperity; and
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