Fiscal Note
The proposed resolution authorizes $300,000 as a long-term deferred loan to Wil-Mar Neighborhood Center, Inc. for acquisition of property located at 1001 Jennifer Street, which is currently leased by Wil-Mar to support the Center’s programs. The $300,000 will be funded by CDBG program income.
Title
SUBSTITUTE - Authorizing up to $300,000 of CDBG funds to support the Wil-Mar Neighborhood Center’s acquisition of a property they currently lease that serves to support the Center’s programs, and amending the 2017 Adopted Operating Budget to appropriate $300,000 from the Community Development Grant Fund.
Body
Wil-Mar Neighborhood Center currently leases land (located at 1001 Jennifer Street) that is adjacent to the center. The property currently contains a playground, basketball courts and open space that is used by participants of the programs offered by Wil-Mar. The site also contains a small parking area for people using the Center. The site is also used by the neighborhood when Wil-Mar programs are not utilizing the site.
The owner of this property has decided to sell the site and has offered first purchase option to Wil-Mar. Wil-Mar hopes to purchase the site so it can continue to be used to support the programs provided by the Center and to be used by the neighborhood. The site is highly valuable and would most likely sell to a private party for their use resulting in a loss of the playground, basketball courts and parking for the Center and the neighborhood. The sale price, including a $10,050 special assessment, is $621,000.00
Wil-Mar will conduct a Capital Campaign to supply the remainder of purchase costs and to support a major renovation to the existing Wil-Mar Center.
ACTION:
WHEREAS, the Wil-Mar Neighborhood Center, Inc. is a non-profit organization that provides programs for lower-income youth, family and seniors who reside primarily in the Williamson-Marquette neighborhoods, and provides space for the neighborhood to come together for community events and desired programs; and
WHEREAS, Wil-Mar currently owns the building at 953 Jennifer Street and leases space at 1001 Jennifer Street where it operates a neighborhood center and provides a range of programming to area residents, many of whom are members of lower-income households; and
WHEREAS, the property leased by Wil-Mar is being sold by the current owner which has offered Wil-Mar the option to purchase the site for its continued use in support of the Center; and
WHEREAS, the users of the Center, and the neighborhood more generally, would be well served by the purchase of this site by Wil-Mar to ensure the continuation of its use for Center programs and community use; and
WHEREAS, CDD staff and the CDBG Committee have reviewed the proposal and find that the acquisition of the subject property by the Wil-Mar Neighborhood Center to support Center programming is an eligible use of CDBG funds and furthers the goals expressed in the City’s HUD-approved 2015-2019 Consolidated Plan and 2017 Action Plan, both of which received Common Council approval.
NOW, THEREFORE BE IT RESOLVED, that the Common Council approve up to $300,000 in CDBG funds for Wil-Mar’ acquisition of the property located at 1001 Jennifer Street for use to support Center activities, and
BE IT FURTHER RESOLVED, that the assistance will be provided as a long-term deferred loan payable upon sale, transfer or change in use of the property and that the loan will be secured by a mortgage and a promissory note. The promissory note will require repayment of a percentage of the appraised value of the property based on the amount of the CDD funds invested in the property, or net proceeds, whichever is less.
BE IT FURTHER RESOLVED, that the Mayor and City Clerk are hereby authorized to execute a contract and related loan documents with the Wil-Mar Neighborhood Center to accomplish the purpose of this resolution; and,
BE IT FINALLY RESOLVED, that the 2017 Adopted Operating Budget is amended to appropriate $300,000 from program income within the Community Development Grant Fund for this agreement.