Fiscal Note
This resolution would authorize the City to temporarily loan up to $650,000 to Madison Development Corporation to finance construction related payments during construction of the planned BioLink facility. Interest payments received from MDC would effectively reimburse the general fund for any lost investment income resulting from the loan. Consequently, no significant budgetary impact is expected.
The actual balance of any such loan acts as a restriction of the City’s general fund balance, and to the extent MDC draws on this loan, the City’s unreserved, undesignated fund balance will be reduced. The total available fund balance now stands at approximately $27,000,000, or about 12% of the City’s annual general fund budget. A loan to MDC of $650,000 would reduce the current fund balance to 11.7% of budget, compared to the target level of 15%.
Title
Authorizing a loan up to $650,000 from the general fund to Madison Development Corporation, or its assigns, for the purpose of paying eligible expenses related to architecture/engineering, construction management, Madison Development Corporation project management, and construction of BioLink.
Body
WHEREAS, the City of Madison (“City”) has committed to provide land and a TIF loan to Madison Development Corporation (“MDC”), or its assigns, for the construction of the Midwest BioLink Commercialization and Business Center (“BioLink”), as outlined in RES-09-00309 (enacted on April 2, 2009) and RES-10-00550 (enacted on June 16, 2010); and,
WHEREAS, on May 11, 2010, the City and MDC were awarded a $4,534,472 grant from the U.S. Department of Commerce’s Economic Development Administration (“EDA”) to construct BioLink; and,
WHEREAS, it is the intent of the City to finalize and execute a TIF loan and development agreement with MDC, or its assigns, to construct and operate BioLink; and,
WHEREAS, MDC will receive concurrent reimbursement payments from the City (through TIF) and the EDA for eligible expenses ...
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