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File #: 44737    Version: 1 Name: 9674 Cathay Pacific Capital Revolving Fund Loan Extension
Type: Resolution Status: Passed
File created: 10/11/2016 In control: BOARD OF ESTIMATES (ended 4/2017)
On agenda: 11/1/2016 Final action: 11/1/2016
Enactment date: 11/2/2016 Enactment #: RES-16-00807
Title: Amending Resolution 11-00537 Authorizing the Mayor and City Clerk to execute an agreement to fund a Madison Capital Revolving Fund loan to Cathay Pacific, Inc. to assist in making improvements to the building located at 2 South Mills Street and 1107 Regent Street to amend the Note and loan agreement in order to extend the $36,618 balloon payment due on December 1, 2016 to December 1, 2018.
Sponsors: Sara Eskrich
Fiscal Note
The proposed resolution amends Resolution 11-00537 which authorized a Madison Capital Revolving Fund (MCRF) loan to Cathay Pacific, Inc. for building improvements. The proposed resolution would extend the $36,618 balloon payment due on December 1, 2016 to December 1, 2018. The extension of the Note maturity would be at a rate of 6% interest, principal and interest paid quarterly. The extension of the balloon payment does not require additional City funds. The borrower is current on the existing MCRF loan and has a history of making timely quarterly payments. The cash balance in the MCRF is approximately $1.1M.
Title
Amending Resolution 11-00537 Authorizing the Mayor and City Clerk to execute an agreement to fund a Madison Capital Revolving Fund loan to Cathay Pacific, Inc. to assist in making improvements to the building located at 2 South Mills Street and 1107 Regent Street to amend the Note and loan agreement in order to extend the $36,618 balloon payment due on December 1, 2016 to December 1, 2018.
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 of the City of Madison (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 policy as proposed by the CDA; and

WHEREAS, on May 12, 2011, the CDA adopted CDA resolution number 22371 advising the Common Council to approve funding for an $80,000 MCRF Loan to Cathay Pacific, Inc. (“Borrower”); and

WHEREAS, on June 21, 2011 the Common Council adopted RES-11-00537 (the “Resolution”) authorizing the Mayor and City Clerk to execute an agreement to fund an $80,000 MCRF loan to Cathay Pacific, Inc. (“Borrower”) evidenced by a five (5) year note from Borrower, amortized over ten (10) year...

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