Fiscal Note
The proposed resolution will authorize a deferred loan to Red Caboose Child Care Center to offset construction costs of the new location in the Union Corners development within TID 37. Repayment of the loan will be due upon the sale, transfer, or change of use of the property. RES-16-00534 (File ID 43551), adopted on July 19th 2016, authorized the land sale for a purchase price of $825,000; under the proposed resolution the final sale price will be $675,000. Proceeds from the transaction will be applied to TID 37 to pay down outstanding expenses within the district; TID 37 currently has $4.9m in unrecovered costs.
Title
Authorizing a $150,000 loan in the form of a reduced sale price to Red Caboose Child Care Center, Inc (Borrower) to partially fund the purchase of land and improvements at 2340 Winnebago Street (Property).
Body
Background
Borrower currently operates a daycare at 654 Williamson Street. Due to the rise in demand and services, this space is no longer adequate. The organization proposes to purchase a property in the Union Corners development that will allow them to have more service capacity. The acquisition and rehabilitation of this property will provide on-site space for childcare, a playground and will host the main office headquarters for the organization.
Action
WHEREAS, the City of Madison and Borrower have entered into a Purchase and Sale Agreement effective August 31, 2016 in the amount of $825,000 to purchase 2340 Winnebago Street (Parcel #251-0710-064-2220-9); and
WHEREAS, Borrower intends to use the Property for the purpose of operating a child care facility and additional office or retail space; and
WHEREAS, the City has a desire to maintain quality accredited child care near the downtown area; and
WHEREAS, Borrower has a mission to provide daycare services to low income families in the downtown Madison area; and
WHEREAS, Borrower is in process of a Capital Campaign and the City seeks to assist the Borrower by pr...
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