Fiscal Note
The proposed resolution will authorize a $250,000 end loan from the Madison Capital Revolving Fund to Sherman Plaza, Inc. for parking lot improvements to the building located at 2817 North Sherman Avenue. The final 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 3% 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 subordinate mortgage security on the property located at 2817 North Sherman Avenue. The Borrower shall provide the City with the personal guaranties of David W. Bruns and Donald B. Bruns for the MCRF Loan.
The Capital Revolving Fund currently has a fund balance of approximately $1,300,000. The 2016 Adopted Budget appropriated $250,000 for loans provided through the Capital Revolving Fund. The proposed loan will be paid through existing funds and will not result in new borrowing.
Title
Authorizing the Mayor and City Clerk to execute an agreement to fund a $250,000 Madison Capital Revolving Fund loan to Sherman Plaza, Inc. to assist in making parking lot improvements to the property located at 2817 North Sherman Avenue currently occupied by Pierce’s grocery store.
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 as proposed by the CDA; and
WHEREAS, Sherman Plaza, Inc. (the “Borrower”) h...
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