City of Madison - File #: 04242

• File #: 04242
• Version: 1
• Name: Authorizing a development agreement to fund a TIF Loan not to exceed $195,000 to Monroe Neighbors, LLC to assist in the construction of a Plaza adjacent to the Monroe Commons project located at 1864 Monroe St in TIF District No. 33 (Monroe-Harrison).
• Type: Resolution
• Status: Passed
• File created: 7/26/2006
• In control: BOARD OF ESTIMATES (ended 4/2017)
• On agenda: 9/5/2006
• Final action: 9/5/2006
• Enactment date: 9/6/2006
• Enactment #: RES-06-00731
• Title: Authorizing the Mayor and City Clerk to execute a development agreement to fund a Tax Incremental Finance Loan not to exceed $195,000 to Monroe Neighbors, LLC to assist in the construction of a Plaza adjacent to the Monroe Commons project located at 1864 Monroe Street in Tax Incremental Finance District No. 33 (Monroe-Harrison).
• Sponsors: Kenneth Golden

Date	Ver.	Action By	Action	Result
9/5/2006	1	COMMON COUNCIL	Adopt	Pass
8/28/2006	1	BOARD OF ESTIMATES (ended 4/2017)	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
8/1/2006	1	COMMON COUNCIL	Refer
7/27/2006	1	Community and Economic Development Unit	Referred for Introduction
7/26/2006	1	Community and Economic Development Unit	Fiscal Note Required / Approval
7/26/2006	1	Finance Dept/Approval Group	Approved Fiscal Note By The Comptroller's Office

Fiscal Note
This resolution would authorize an additional $195,000 TIF loan to Monroe Street Neighbors, LLC ("Developer") for the construction of a plaza in conjunction with the Monroe Commons development project. This loan, along with the $2,322,000 of TIF assistance originally provided to the developer, would be repaid through incremental taxes generated by the project and represents approximately 54% of the present value of all incremental taxes anticipated from the Project throughout the maximum 27-year life of the TID. This funding level constitutes an exception to the 50% policy established by Common Council.

Sufficient funding is authorized in the 2006 Capital Budget (P$D Project #24, Unspecified TIF Districts) to provide the initial capitalization for this loan, financed with taxable general obligation borrowing. While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan, the Developer is required to guarantee a minimum payment if sufficient future tax increment is not available. The Developer is also obligated to return a 50% share of any surplus net proceeds, upon the receipt of a final audit of the project cost and sales records. The increment guarantee and equity participation payment are secured by a subordinated mortgage on the property.

Title
Authorizing the Mayor and City Clerk to execute a development agreement to fund a Tax Incremental Finance Loan not to exceed $195,000 to Monroe Neighbors, LLC to assist in the construction of a Plaza adjacent to the Monroe Commons project located at 1864 Monroe Street in Tax Incremental Finance District No. 33 (Monroe-Harrison).
Body
WHEREAS, the City of Madison has, by adoption on September 21, 2004 of Resolution Number 61,922, ID Number 36,582, creating Tax Incremental District (TID) #33, approved a Project Plan for said district; and

WHEREAS said Project Plan, among other things, provides for planned economic, commercial, housing and mi...