Fiscal Note
The City made a loan of $75,000 in CDBG funds to Community Coordinated Child Care (4-C's) to help them purchase a building. The funds were recently repaid with a share of appreciation for a total of $124,000 when the building was destroyed by fire. The resolution would permit the City to re-loan the funds to 4-C's to help them rebuild.
Title
Authorizing the provision of $124,000 in CDBG funds to assist Community Coordinated Child Care (4-C's) to construct a building at 5 Odana Court to allow them to continue to address City, Community and Neighborhood Development Objectives, and authorizing the Mayor and City Clerk to enter into contractual agreements as appropriate.
Body
Community Coordinated Child Care (4-C's) provides support services in the child care field. In 1993, they purchased a facility at 5 Odana Court with the help of a loan of $150,000 in CDBG funds. Half of that loan, $75,000 was provided as an installment loan that was repaid in full as of January 2004. The remaining $75,000 was a long-term deferred loan with repayment equal to the original loan plus a share of appreciation.
In August 2008 a fire destroyed the building. 4-C's repaid the long-term deferred loan which was valued at $124,000 with of appreciation.
4-C has decided to rebuild the facility at 5 Odana Court. They have requested that the City reinvest the repaid $124,000 in the construction of the new facility.
Actions
WHEREAS, 4-C's has successfully served low income families and child care providers at their location at 5 Odana Court since 1993;
WHEREAS, the CDBG program, as amended, and its implementing regulations located at 24 CFR Part 570 permit 6 the City of Madison to help community agencies construct facilities;
WHEREAS, the CDBG staff and Commission have reviewed the proposal and recommend Council adoption as a way to reinvest repaid funds and assist the agency to rebuild and continue to serve lower income families;
NOW THEREFORE BE IT RESOLVED that the...
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