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File #: 44201    Version: 1 Name: Approving a Small Cap TIF #43 Park/Drake (Greenbush) loan of up to $80,000 for the renovation of the property located at 311 South Orchard Street; and authorizing the Mayor and City Clerk to execute a loan agreement with the Borrower(s) to effectuate this
Type: Resolution Status: Passed
File created: 8/24/2016 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 9/20/2016 Final action: 9/20/2016
Enactment date: 9/22/2016 Enactment #: RES-16-00698
Title: Approving a Small Cap TIF #43 Park/Drake (Greenbush) loan of up to $80,000 for the renovation of the property located at 311 South Orchard Street; and authorizing the Mayor and City Clerk to execute a loan agreement with the Borrower(s) to effectuate this transaction.
Sponsors: Sara Eskrich
Fiscal Note
Up to $300,000 is authorized in the City’s Adopted 2016 Capital Budget for the Economic Development Division’s Project #13 (TID 43 Park/Drake). In addition a $60,000 budget amendment was approved for a total of $360,000 funds authorized in 2016 (RES-16-00369) (File ID 42710). If approved, this will be the fifth loan under the Small Cap TIF program. The current balance of the Small TIF Program is $180,000, if approved there will be $100,000 of loan funds available.
Title
Approving a Small Cap TIF #43 Park/Drake (Greenbush) loan of up to $80,000 for the renovation of the property located at 311 South Orchard Street; and authorizing the Mayor and City Clerk to execute a loan agreement with the Borrower(s) to effectuate this transaction.
Body
BACKGROUND

Tax Incremental District (TID) #43 (Park/Drake) was created in September 2013 (RES-13-00698, Legistar #31073) for the sole purpose of implementing a Small Cap TIF program to assist with conversion of deteriorating rental housing into renovated owner occupied property. The Greenbush Housing Renovation Program ("Program"), which was created in August 2014 (RES-14-00577, Legistar #34645) and subsequently amended in April 2015 (RES-15-00343, Legistar #37774), provides forgivable loans to eligible borrowers for the purchase and/or renovation of rental property in the neighborhood that have been most recently utilized as student rental housing. Existing and planned multifamily developments in the TID provide the generation of increment to support this Small Cap TIF program.

Loan funds provided through the Program for each renovation project (“Project”) are subject to the following conditions:

· TIF assistance is provided in the form of a 0% interest, ten-year note secured by subordinated mortgage on the Property, with no debt service payments. Principal balance is forgiven after the completion of renovation work has been verified by the City. A Land Use Restriction Agreement (LURA) is also executed, to e...

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