Fiscal Note
This resolution would authorize a $250,000 end loan from the Madison Capital Revolving Fund to 20 West Mifflin Associates, LLC for structural improvements and renovation of the building located at 20 West Mifflin, formerly occupied by McDonald's. End loan proceeds shall be provided upon satisfactory completion of the project in conformance to the terms and conditions of the MCRF loan, as stated herein. Terms of the loan would be a maximum of seven (7) years at an interest rate of 3% in Years One (1) through Five (5), interest of 4% in Year Six (6) and interest of 5% in Year Seven (7). The borrower will make quarterly principal and interest payments with a balloon payment of principal and interest due in Year Seven (7). The Borrower's obligation to repay would be secured by a subordinated mortgage on the property and a personal guaranty. The Adopted 2007 Planning and Development Capital Budget (project #7) authorized $240,000 for MCRF loans. A budget amendment is therefore required to authorize an additional $10,000. The existing fund balance in the MCRF program is sufficient to fund this amended amount without additional borrowing.
Title
Authorizing 1) an amendment to the 2007 Capital Budget to appropriate an additional $10,000 from the Madison Capital Revolving Fund (MCRF) and 2) the Mayor and City Clerk to execute an agreement to fund a $250,000 Madison Capital Revolving Fund loan to 20 West Mifflin Associates, LLC to renovate the property at 20 West Mifflin into 4,477 square feet of commercial space.
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 objectives and criteria as ...
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