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File #: 43448    Version: Name: Agreement to fund an $80,000 Madison Capital Revolving Fund Loan to Sherman Plaza, Inc. - Leasehold Improvements to former Kohl's grocery store at 2901 North Sherman Avenue
Type: Resolution Status: Filed
File created: 6/20/2016 In control: COMMON COUNCIL
On agenda: 8/2/2016 Final action: 9/6/2016
Enactment date: 7/6/2016 Enactment #: RES-16-00509
Title: SUBSTITUTE - Authorizing the Mayor and City Clerk to execute an agreement to fund an $80,000 Madison Capital Revolving Fund loan to Sherman Plaza, Inc. to partially fund leasehold improvements to the former Kohl’s grocery store located at 2901 North Sherman Avenue and amend the 2016 Adopted Capital Budget to appropriate $80,000 from the Capital Revolving Loan Fund.
Sponsors: Larry Palm
Attachments: 1. MCRF Loan Report - Sherman Plaza Inc and RP's Pasta 6-21-16.pdf, 2. RPs Pasta Memo - Legistar 43446 and 43448 6-27-16.pdf
Fiscal Note
MCRF Loan #2
This resolution would authorize an $80,000 end loan from the Madison Capital Revolving Fund to Sherman Plaza, Inc. to partially fund capital leasehold improvements to the building located at 2901 North Sherman Avenue that would facilitate a commercial food production use for its proposed tenant, RP’s Pasta Company. End 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 payable at maturity.

Borrower shall make quarterly principal and interest payments. Borrower shall execute a mortgage in favor of the City on the Mortgaged Property, as indicated by the PINs below.

PINs:

081030302161
081030302202
081030302210
081030302228
081030302236

Borrower shall execute a mortgage in favor of the City. Principals of Borrower, David W. Bruns and Donald B. Bruns shall each execute a personal guaranty.

MCRF Loan #1
In addition, a separate authorizing resolution authorizes $800,000 of MCRF loan funds (MCRF Loan #1) to partially fund tenant improvements paid by Tenant. Terms of MCRF Loan #1 would be a maximum of five (5) years, amortized over ten (10) years at an interest rate of 3% fixed. At maturity, the City shall extend said Note at Tenant’s request by a period not to exceed five years, contingent upon Tenant demonstrating that the MCRF Loan is not in default and that the job creation and retention goals are met.

Borrower shall make quarterly principal and interest payments. Borrower shall execute a mortgage in favor of the City on the Mortgaged Property, as indicated by the PINs below.

PINs:

081030302161
081030302202
081030302210
081030302228
081030302236

Tenant shall execute a leasehold mortgage in favor of the City (together the “MCRF Mortgage”) securin...

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