Fiscal Note
The proposed resolution authorizes a $112,500 loan to Aster 21, LLC for the purchase of property located at 4245 W. Beltline Highway. The proposed loan will be funded by the Economic Development Division’s Small Business Equity and Recovery (SBER) capital program. The SBER capital program has approximately $994,000 of remaining budget authority. No additional City appropriation is required.
Title
Providing Aster 21 LLC a $112,500 loan to purchase a commercial property at 4245 West Beltline Highway through the Commercial Ownership Assistance program using the Small Business Equity and Recovery Program (SBER) funds and authorizing the Mayor and City Clerk to sign an agreement with Aster 21 LLC for that purpose. (10th AD)
Body
WHEREAS, Data shows that while Communities of Color represent approximately 27% of the City of Madison’s population, business ownership rates for People of Color are much lower (between 3-9% using varying metrics) within the City; and
WHEREAS, business and property ownership is a vital pathway to economic empowerment. For Madison to make meaningful progress in addressing racial disparities the City must go beyond programs focused on addressing basic needs, and direct more resources and strategies toward building wealth and economic empowerment among communities that are not sharing in the City’s prosperity; and
WHEREAS, Aster 21, LLC is an African American owned business that will operate two of their businesses out of this location. One being a website development and digital marketing business the other a cleaning business with both being in operation for over ten years; and
WHEREAS, Aster 21, LLC would utilize Commercial Ownership Assistance funds to assist with the acquisition of the property located at 4245 W Beltline Highway, hereby meeting the requirements of the Commercial Ownership Assistance (COA)
Program; and
WHEREAS, the COA program guidelines stipulate these funds can be no more than 25% of the total project package and all loan repayments are deferred until sale, cash-out refinance for other than property improvements, and the property is transferred or ceases to be a location for a business owned by the borrower. If any of the above happen within the first 7 years repayment of the full amount is required. If any of the above happen between years 7-15 repayment of one-half the borrowed amount will be required. If the applicant still owns the property after year 15, the original loan amount will be forgiven. There will be no interest rate; and
WHEREAS, the Director of the Department of Planning, Community, and Economic Development recommends an investment of $112,500 of Commercial Ownership Assistance Funds to this project.
NOW, THEREFORE BE IT RESOLVED, that the Common Council authorizes a $112,500 Commercial Ownership Assistance Program Loan to Aster 21, LLC for the purchase of the property at 4245 W. Beltline Highway; and
BE IT FINALLY RESOLVED that the Mayor and City Clerk are hereby authorized to execute a loan agreement and/or any other documents as may be necessary to effectuate the transaction, all of which are subject to the approval of the City Attorney.