Fiscal Note
There is no direct fiscal impact or appropriation required to amend the qualifying loan criteria for the TID #32 Small Cap TIF program. The change in criteria will broaden the eligibility pool and potentially increase loan activity. The 2014 adopted capital budget of the Planning and Community and Economic Development agency authorizes expenditures of $332,000 for Small Cap TIF loans and facade improvements (Project No. 25, "TID 32 - Upper State Street Corridor," Acc't No. 823201).
Title
SUBSTITUTE Authorizing the Mayor and City Clerk to execute an amendment to the Mansion Hill-James Madison Park Neighborhood Small Cap TIF Program in Tax Incremental District #32 (Upper State Street) and amending Enactment No.RES-11-00042.
Body
On January 20, 2011, the Common Council adopted Enactment No. RES-11-00042 (the “2011 Resolution”) that authorized the creation of the Mansion Hill-James Madison Park Neighborhood Small Cap TIF Program (“Program”). Under the terms of the 2011 Resolution, the borrower cannot already own the property, is required to occupy the property as their primary residence within twelve (12) months of loan closing, and must occupy the property for ten (10) years. The amount of the loan is limited to renovation costs plus up to 15% of purchase price not to exceed $60,000 for a single family residential property, $70,000 for a two-unit property, and $80,000 for a three-unit property. To date the program has made two loans. Staff met with previous Small Cap TIF borrowers, realtors, real estate professionals, and alders to discuss the program structure to facilitate greater utilization. The recommended changes were to allow developers to apply to the program, allow current landlords to apply to the program, increase the loan amount, allow flexibility for a borrower to sell the property without penalty, and utilize a land use restriction to ensure owner-occupancy.
NOW, THEREFORE, BE IT RESOLVED that:
1. Enactment No. RES-11-00042 is amended...
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