Fiscal Note
The proposed resolution approves a Small Cap TIF loan of $90,000 to Wenxin Chen and Bin Zhou (“Borrower”) for renovation of the property located at 513 S Brooks Street in the Greenbush Neighborhood. This renovation includes conversion from rental to owner-occupied housing. The 2017 Adopted Capital Budget includes $250,000 for the Small Capital Loan Program in Tax Increment District 43 - Park/Drake. A Council-adopted resolution (File ID: 46804) and subsequent budget amendment added $600,000 to the aforementioned program in May 2017. The Small Capital Loan Program in TID 43 has awarded $80,000 to date and disbursement of $90,000 for the proposed loan will leave a balance of $680,000.
Title
Approving a Small Cap TIF #43 Park/Drake loan of up to $90,000 to, Wenxin Chen and Bin Zhou Borrower(s), for the renovation of the property located at 513 S Brooks 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. The program was amended in April 2015 (RES-15-00343, Legistar #37774) and November 2016 (RES-16-00857, Legistar #44935). 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 C...
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