Fiscal Note
This resolution would authorize a $250,000 end loan from the Madison Capital Revolving Fund to Blount Street, LLC for structural improvements and renovation of the building located at 301 Blount Street and 702-06 Williamson Street. Loan proceeds will be provided upon satisfactory completion of the project in conformance with the terms and conditions of the MCRF loan. The loan would be amortized over 30 years with a maximum repayment term of 7 years and an interest rate of 3% in years 1 - 5, interest of 4% in year 6 and interest of 5% in year 7. The borrower would make quarterly principal and interest payments with a balloon payment of remaining principal and interest due at the end of the 7th year. The borrower’s obligation to repay would be secured by a subordinated mortgage on the property, and the borrower will also provide the City with a personal guaranty for the loan. The 2008 Capital Budget authorized $1,000,000 for MCRF loans and the existing cash balance in the MCRF program is sufficient to fund this proposed loan.
Title
Authorizing the Mayor and City Clerk to execute an agreement to fund a $250,000 Madison Capital Revolving Fund (MCRF) loan to Blount Street, LLC to renovate 301 Blount Street and 702-06 Williamson Street into 51,000 SF 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 proposed by the CDA; and
WHEREAS, Martin Rifken is the managing member of Blount Street, LLC (“Borrower”) and has proposed to renovate the property at 301 Blount Street and 702-06 Williamson Street at an estimated total development cost of approxima...
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