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File #: 66652    Version: 1 Name: 12367 TID 49 Loan to Madison Interstate East LLC
Type: Resolution Status: Passed
File created: 7/27/2021 In control: Economic Development Division
On agenda: 8/31/2021 Final action: 8/31/2021
Enactment date: 9/7/2021 Enactment #: RES-21-00604
Title: Authorizing the execution of a loan agreement to fund a $2,100,000 Tax Incremental Finance Loan to Madison Interstate East, LLC or its assigns within the proposed TID #49 (Femrite Drive) boundary along the Interstate 90/94 corridor within the TID #49 boundary.
Sponsors: Jael Currie, Yannette Figueroa Cole, Satya V. Rhodes-Conway
Attachments: 1. HSA TIF Report 7-26-21.pdf, 2. Madison Interstate East Memo - Legistar 66652 8-5-21.pdf
Fiscal Note
The proposed resolution authorizes a loan agreement to fund a $2,100,000 TIF loan to Madison Interstate East, LLC ("Developer"), or its assigns, for a three-phased project located at 2930 and 3030 Ohmeda Drive in the recently adopted TID 49 (Femrite Drive) boundary. General obligation borrowing, recovered through tax increments generated by the project would be required to fund the $2,100,000 TIF Loan to this project and would require authorization in the 2022 Capital Budget. TIF funding is also contingent upon approval of the TID #49 Project Plan and Boundary in 2021.

The Project consists of three phased components. Project A in the first phase, commencing in 2022 is an approximately 169,000 square foot industrial building, Project B in the second phase, commencing in 2023 is an approximately 91,200 square foot industrial building, and Project C in the third phase, commencing in 2024 is an approximately 169,000 square foot industrial building ("Project"). The TIF Loan would be repaid through incremental taxes generated by the Project and represents approximately 55% of the present value of all incremental taxes anticipated from the Project over the 20-year life of TID #49.

Upon completion of the Project defined as issuance of a Certificate of Occupancy for Projects A, B and C, Developer shall provide the City with an audit of the Total Project Cost and Financing (“Audit”), to the City’s satisfaction, for the City’s review and approval. In the event that the financing gap for Project A, B or C is less than the TIF Loan, then the City shall receive 50% of the amount of the reduced gap as a clawback.

Funding of the $2,100,000 TIF Loan to the Project requires authorization in the 2022 Capital Budget authorizing the expenditure. While it is anticipated that the incremental taxes generated by the Project will be sufficient to repay the loan within approximately 9 years, the Developer is required to guaranty a minimum payment if sufficient future tax in...

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