Fiscal Note
This resolution would authorize a $2,050,000 loan to 316 WWA, LLC or its assigns ("Developer") for the redevelopment of property located at 316 West Washington Avenue. The site would be included in a new proposed TID #45 (Capitol Square West). A boundary and Project Plan is required to be adopted in 2015 by the Common Council and approved by the TIF Joint Review Board.
The Project consists of approximately 141,000 square feet of office and approximately 11,000 gross square feet of first floor retail ("Project"). This loan would be repaid through incremental taxes generated by the Project and represents approximately 55% of the present value of all incremental taxes anticipated from the Project throughout the 27-year life of proposed TID #45.
Due to construction timing, the TIF Loan for this Project is anticipated to be disbursed to the Project in the first quarter of 2016, contingent upon Joint Review Board approval of the new TID that shall occur in 2015 but in advance of the TID #45 boundary and Project Plan being certified by the Wisconsin Department of Revenue (DOR). Such certification is anticipated on or about April 30, 2016.
In the event that the TID is not certified by the Wisconsin Department of Revenue, Developer shall be credited for the City portion of annual actual taxes levied on the Project to repay the $2,050,000 disbursed prior to DOR certification. The City portion of the average taxes over the first ten years is approximately $101,000 per year. Developer shall be obligated to repay all funds disbursed by the City as a conventional loan, amortized over ten years, together with the costs of issuance and interest on the unpaid principal balance at a rate equal to the rate of the City’s borrowing, plus one hundred basis points. Payments of principal and interest shall be made quarterly. In the event that the TID is not certified, this estimated credit and any Developer guaranty payments is sufficient to recover the $2,050,000 disb...
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