Fiscal Note
No additional appropriation required.
Title
Amendment to RES-16-00238 Authorizing the Mayor and City Clerk to execute a development agreement to fund a $565,000 Tax Incremental Finance Loan to assist in the development of an affordable housing redevelopment project located at the former Madison Dairy property in the proposed Project Plan and Boundary Amendment area of TID #36 (Capitol Gateway).
Body
WHEREAS, the Common Council adopted RES-16-00238 (the “Resolution”) on March 29, 2016 to provide $565,000 in tax incremental finance (TIF) assistance to SHD, Inc. (the “Borrower”) in order to finance an affordable housing development at the former Madison Dairy site; and,
WHEREAS, the Resolution contained a provision that caused the assistance to expire if the Borrower did not have building permits secured by December 31, 2016; and,
WHEREAS, pursuant to Paragraph 6 of the Resolution, the Wisconsin Department of Revenue certified the amendment to tax incremental district (TID) #36 to incorporate this project as of January 1, 2017; and
WHEREAS, the Common Council adopted an ordinance providing an exemption to park impact fees for affordable housing projects; and
WHEREAS, in order to utilize the new exemption, the Borrower requires an extension of the deadline for receiving a building permit under Paragraph 22 of the Resolution; and
WHEREAS, Borrower and City agree to amend the Audit and Clawback provisions to more accurately reflect the method of financing the project, as well as, providing the City with an additional review of the project costs before closing.
NOW THEREFORE BE IT RESOLVED, that RES-16-00238 is hereby amended as follows:
1. Paragraph 3 of the Resolution is amended to read:
3. Evidence of Financing, Audit and Clawback Provision. Prior to the TIF Loan closing, Developer shall provide evidence of bank financing, grant funds and equity in the aggregate amount of not less than $10,435,000 (“Financing”). Bank financing shall be evide...
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