Fiscal Note
This resolution would authorize a $230,000 end loan from the Madison Capital Revolving Fund to Wingra Broadway, LLC to construct a new 8,400 SF building at 1502 West Broadway. 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 five (5) years with a ten (10)-year amortization, at an interest rate of 3%, fixed. Borrower shall make quarterly principal and interest payments with a balloon payment of principal and interest due in Year Five (5). The Borrower’s obligation to repay would be secured by a subordinated mortgage on the property. Managing member of the Borrower, Scott L. Norton, shall provide the City with a personal guaranty for the loan. The 2009 Operating Budget did not appropriate funds for MCRF loans as no projects were anticipated at that time. A budget amendment is therefore required to authorize the $230,000 expenditure. The existing fund balance in the MCRF program is sufficient to fund the loan.
Title
Authorizing 1) an amendment to the 2009 Operating Budget appropriating $230,000 from the Madison Capital Revolving Fund (MCRF) fund a $230,000 MCRF loan referenced herein and 2) the Mayor and City Clerk to execute an agreement to fund a $230,000 Madison Capital Revolving Fund loan to Wingra Broadway, LLC to construct 8,400 SF of commercial space at 1502 West Broadway.
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, Scott L. Norton is the managing member of Wingra Broadw...
Click here for full text