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File #: 64845    Version: 1 Name: Valor Addendum to Loan Agreements
Type: Resolution Status: Passed
File created: 3/29/2021 In control: Attorney's Office
On agenda: 5/4/2021 Final action: 5/4/2021
Enactment date: 5/10/2021 Enactment #: RES-21-00308
Title: Approving an Addendum to Loan Agreements between the City and UC Nexus, LLC and Valor on Washington, LLC Pursuant to MGO 39.02(9)(g)(13)
Sponsors: Arvina Martin
Fiscal Note
The proposed resolution approves an addendum to agreements between the City and UC Nexus, LLC and Valor on Washington, LLC. Because the developers did not achieve desired affirmative action goals, this addendum includes conditions to satisfy the compliance requirements. These conditions include a $237,000 payment to the City, which will be used to support small, minority and women-owned businesses. No City appropriation is required.
Title
Approving an Addendum to Loan Agreements between the City and UC Nexus, LLC and Valor on Washington, LLC Pursuant to MGO 39.02(9)(g)(13)
Body
WHEREAS, Gorman & Company, LLC (Gorman), Valor on Washington, LLC (Valor), and the City of Madison (City) have entered into that certain Affordable Housing Loan Agreement, dated as of March 1, 2020 related to Valor, and
WHEREAS, UC Nexus, LLC (Nexus), Gorman, and the City have entered into that certain Tax Incremental Loan Agreement, dated as of September 2, 2020 related to Nexus (together the “Loan Agreements”) to support construction of projects by the Developers; and
WHEREAS, the Loan Agreements contain required language related to Affirmative Action pursuant to Madison General Ordinance 39.02; and
WHEREAS, the City claims Valor and Nexus did not achieve the desired goals for participation of targeted business enterprises and emerging business enterprises in the construction of their respective projects; and
WHEREAS, in accordance with MGO 39.02(9)(g)(13), the City and the Developers have agreed to the terms and conditions set forth in this resolution to satisfy compliance requirements of the Loan Agreements.
NOW THEREFORE BE IT RESOLVED, that the Common Council authorizes the Mayor and Clerk to execute an addendum to the Loan Agreements materially on the following terms and conditions:
1. Developers shall pay Two Hundred Thirty Seven Thousand ($237,000) (the “Payment”) to the City and the City agrees to use such funds for the purpose of funding employment initiatives f...

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