Fiscal Note
$332,000 is authorized in the 2014 Adopted Capital budget of the Planning and Community and Economic Development agency for the TID 32 Small Cap Loan Program, Project No. 25, TID 32-(Upper State Street) Account No. 823201. The Council has previously authorized 2014 loan amounts totaling $160,000. Approval of this loan will bring total 2014 authorized loan expenditures to $240,000.
Title
Authorizing the Mayor and City Clerk to execute a loan agreement to fund an $80,000 Mansion Hill-James Madison Park Neighborhood Small Cap TIF Loan to Loridor LLC (Lawrie Kobza & Peter Oppeneer) to renovate the property located at 926 East Dayton Street, Madison, WI.
Body
WHEREAS on July 1, 2003 the Common Council of the City of Madison adopted Resolution No. 60,678, ID No. 33,974 creating a boundary and Project Plan for Tax Incremental District (TID) #32 - Upper State Street ("District") as set forth by Wis. Stats. 66.1105 ("TIF Law"); and
WHEREAS on July 18, 2006 the Common Council of the City of Madison adopted Resolution No. 06-00603, ID No. 03683 adopting a first amendment to the boundary and Project Plan for the District as set forth by TIF Law; and
WHEREAS on September 21, 2010, the Common Council of the City of Madison adopted Resolution No. 10-00758, ID No. 18993 adopting a second amendment to the boundary and Project Plan for the District as set forth by TIF Law; and
WHEREAS on August 5, 2014 (Resolution No. 14-00576, ID No. 34644) the Common Council adopted a resolution which amended both the TIF #32 Small Cap TIF Loan Program and the TIF #43 (Park-Drake) Small Cap TIF Loan Program increasing the loan amounts and changing some of the qualifying loan criteria and terms and conditions; and
NOW, THEREFORE, BE IT RESOLVED that the Common Council hereby authorizes the execution of a loan with Loridor LLC (Lawrie Kobza & Peter Oppeneer) ("Borrower"), as provided under the revised Small Cap TIF Loan Program criteria, for the rehabilitation of a property ("Project") located at 926 East Dayton Street, Madison, WI ("Property") subject to the following terms and conditions:
1. The Project. Borrower agrees to renovate the Property.
2. Form of Assistance. TIF assistance shall be provided in the form of a ten-year deferred zero interest (0%) forgivable loan ("TIF Loan") at closing from the City to the Borrower, in the amount of $80,000 for rehabilitation costs. The Borrower shall execute a note, mortgage, Loan Agreement, land use restriction, and any other necessary documents in favor of the City for $80,000.
3. Property Insurance. Prior to closing, the Borrower shall provide to the City a property insurance policy of the proper type and amount of coverage to protect the City's interest. The policy shall name the City of Madison as an additional insured mortgagee.
4. Title Insurance. At closing, the Borrower must provide a commitment for a title insurance policy of the proper type and amount of coverage to the City to protect the City's interest. The City shall receive a lender's policy.
5. Affirmative Action [MGO 39.02(9)]. The Borrower and its contractors/subcontractors must comply with all applicable provisions of the Madison General Ordinance (MGO) 39.02(9), concerning contract compliance requirements. Prior to commencing construction, the Borrower shall contact the City's Civil Rights Division to assure that the Borrower is in compliance with the aforementioned requirements. The Borrower shall assist and actively cooperate with the Civil Rights Division in obtaining the compliance of contractors and subcontractors with such applicable provisions of the MGO. The Borrower shall allow maximum feasible opportunity to minority/disadvantaged women business enterprises to compete for any contracts.
6. Accessibility (MGO 39.05). The Borrower agrees to meet applicable accessibility accommodations for the Project as required by MGO 39.05.
7. Equal Opportunity and Fair Housing. The Borrower shall comply with all applicable local, state and federal provisions concerning Equal Opportunity and Fair Housing.
8. Project Completion. Borrower shall guarantee that the construction of the Project will be completed by July 31, 2015.
9. Receipt of acceptable bids. Prior to loan commitment, City to receive and review acceptable bids with final approval from Civil Rights Division.
BE IT STILL FURTHER RESOLVED that the Mayor and City Clerk are hereby authorized to execute any amendments, loan agreements and other documents as may be necessary to effectuate this transaction, all of which are subject to the approval of the City Attorney.