Fiscal Note
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Title
Amending Res-21-00604 authorizing a Loan Agreement for a $2,100,000 TIF loan to Madison Interstate East, LLC for a three-phased industrial project located at 2930 and 3030 Ohmeda Drive.
Body
WHEREAS, on August 31, 2021, the Common Council approved a loan agreement to fund a $2,100,000 TIF loan to Madison Interstate East, LLC ("Developer"), or its assigns, for a three-phased industrial project located at 2930 and 3030 Ohmeda Drive in the recently adopted TID 49 (Femrite Drive) boundary (Legistar #66652, RES-21-00604); and,
WHEREAS, three payments are to be made to fund three phases of the project over time; and,
WHEREAS, the loan agreement includes a 40% reduction penalty if construction of the first phase, Project A, did not occur by May 23, 2022; and,
WHEREAS, Developer did not have all City approvals and was therefore unable to proceed with construction prior to May 23, 2022; and,
WHEREAS, the Developer has requested an extension to fulfill its obligations related to Project A in order to receive the full TIF amount.
NOW, THEREFORE, BE IT RESOLVED that Res-21-00604 is hereby amended on the following terms and conditions:
Section 4, Primary Payment Structure, is amended to delete references to “May 23, 2022” and replaced that date with “December 31, 2022”.
Section 5, Delayed Projects - Alternate Payment Structure, is hereby deleted and replaced with the following:
5. Delayed Projects - Alternative Payment Structure. As a complete alternative to Section 4, this section shall be applicable if Project A has commenced by December 31, 2022, but either Projects B or C do not commence by their respective deadlines noted in Section 4. Failure to commence construction of Project A by December 31, 2022 shall cause the termination of this Agreement.
a. Second Alternative Payment. The Second Payment shall be reduced by 40% to Two Hundred and Fifty Two Thousand Dollars ($252,000) (“Second Alternative Pay...
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