Fiscal Note
The 2016 Adopted Capital Budget includes $600,000 for Co-operative Enterprise Development (MUNIS Project 17073). The proposed resolution authorizes a contract with Madison Development Corporation for $300,000 to oversee implementation of the revolving loan program and a contract with Cooperative Network for $300,000 to oversee implementation of the technical assistance programming and network. These agreements are part of a five year program as outlined in the 2016 Adopted Capital Improvement Plan.
Title
Resolution accepting the staff recommendation to select Madison Development Corporation to act as the loan manager and Cooperative Network to oversee the technical assistance providers for the Cooperative Enterprise Development Program; and, authorizing the Mayor and City Clerk to execute contracts with each organization.
Body
WHEREAS, the City of Madison is a national leader in the Worker Cooperative (aka business cooperative and worker-owned cooperative) movement; and,
WHEREAS, business cooperatives can play an important role in maintaining and growing jobs within the community; and,
WHEREAS, business cooperatives economically empower workers and help address community needs; and,
WHEREAS, the City believes creating a loan fund and technical assistance services to help create new business cooperatives and convert Madison businesses interested in changing ownership into worker-owned cooperatives will help create wealth and opportunities for increased economic equity; and,
WHEREAS, the Madison Development Corporation has submitted a proposal in response to RFP 8516-0-2016RR that addresses creating a fund focused on providing loans to business cooperatives; and,
WHEREAS, the Cooperative Network also responded to RFP 8516-0-2016RR with a proposal to serve as the coordinating organization for the Madison Cooperative Development Coalition, which consists of a partnership between nineteen (19) Madison organizations that will create a network of community groups focused on identifying opportunities for the creation and/or conversion of business cooperatives; and, provide technical support for those interested in creating worker-owned cooperatives; and,
WHEREAS, the Madison Development Corporation and the Cooperative Network will work in partnership with support from the Office of Business Resources to accomplish the goals of the program; and,
WHEREAS, City staff recommends that the Madison Development Corporation and the Cooperative Network be selected to run the loan fund and technical assistance programs; and
WHEREAS, the Cooperative Enterprise Development Program is proposed to be a five (5) year commitment by the City ; with initial two (2) year contracts.
NOW THEREFORE BE IT RESOLVED, the Economic Development Division staff is authorized to negotiate contracts with the Madison Development Corporation and the Cooperative Network to create a program as defined in the program language of RFP 8516-0-2016RR; and,
BE IT FINALLY RESOLVED that the Mayor and City Clerk are authorized to execute said contracts and are authorized to execute, deliver, accept and record any and all documents and take such other actions as shall be necessary or desirable to accomplish the purpose of this resolution in a form approved by the City Attorney.