Fiscal Note
The 2017 Adopted Capital Budget includes $250,000 within the Economic Development Division for a Small Capital Loan program in the Greenbush neighborhood funded through TID 43 proceeds. The proposed resolution authorizes an $80,000 grant to convert property at 315 S Orchard Street from a rental to owner-occupied. If approved, this will be the sixth loan authorized through the program.
Title
Approving a Small Cap TIF #43 Park/Drake loan of up to $80,000 to Isaac & Megan Knoflicek, Borrower(s), for the renovation of the property located at 315 S. Orchard Street, Madison, WI and its conversion from rental to owner-occupied housing, and authorizing the Mayor and City Clerk to execute a loan agreement with the Borrower(s) to effectuate this transaction.
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Background
The Greenbush Neighborhood Revitalization Program, part of the approved plan for Tax Incremental District #43 (Park/Drake) was created in August 2014 (RES-14-00577, Legistar #34645) for the purpose of assisting with conversion of deteriorating rental housing into renovated owner occupied property. The program was amended in April 2015 (RES-15-00343, Legistar #37774). It provides forgivable loans to eligible borrowers for the purchase and/or renovation of rental properties in the Greenbush neighborhood.
Loan funds provided through the Program for each renovation project are subject to the following conditions:
? TIF assistance is provided in the form of a 0% interest 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 ensure owner-occupancy for the entire ten-year period, and contains a penalty provision requiring loan repayment of up to $50,000 to the City if the Property is rented for more than 12 consecutive months or becomes non-owner occupied.
? Borrower must provide a commitment for...
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