Fiscal Note
This resolution would authorize an $80,000 end loan from the Madison Capital Revolving Fund to Cathay Pacific, Inc. for the improvements to the building located at 2 South Mills Street and the adjacent lot located at 1107 Regent Street. 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 MCRF Loan would be a maximum of five (5) years, amortized over ten (10) years at an interest rate of 5% fixed, with a balloon payment of principal and interest due at note maturity. The Borrower shall make quarterly principal and interest payments. The Borrower’s obligation to repay would be secured by a first mortgage security on the property located at 2 South Mills Street and 1107 Regent Street. The Borrower shall provide the City with the personal guaranties of Siu Cheung (Philip) Leung and Siu Wah (Terry) Leung for the MCRF Loan. The Capital Revolving Fund has a $1,023,400 fund balance of which $500,000.00 was authorized for MCRF loans in the 2011 Operating Budget. There are two (2) pending 2010 MCRF loans from 2010, in the amount of $187,440.00, awaiting closure. The existing fund balance in the MCRF program is sufficient to fund this amount without additional borrowing.
Title
Authorizing the Mayor and City Clerk to execute an agreement to fund a Madison Capital Revolving Fund loan to Cathay Pacific, Inc. to assist in making improvements to the building located at 2 South Mills Street and 1107 Regent Street.
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...
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