City of Madison - File #: 75563

• File #: 75563
• Version: 2
• Name: SUBSTITUTE: Authorizing a $400,000 loan to Centro Hispano, Inc. from the Community Facilities Loan Program to help finance the construction of a community facility at 2403 Cypress Way, authorizing the Mayor and City Clerk to sign an agreement for that p
• Type: Resolution
• Status: Passed
• File created: 1/11/2023
• In control: FINANCE COMMITTEE
• On agenda: 2/7/2023
• Final action: 2/7/2023
• Enactment date: 2/10/2023
• Enactment #: RES-23-00125
• Title: SUBSTITUTE: Authorizing a $400,000 loan to Centro Hispano, Inc. from the Community Facilities Loan Program to help finance the construction of a community facility at 2403 Cypress Way, authorizing the Mayor and City Clerk to sign an agreement for that purpose, and amending previously enacted Resolutions 22-00757 and 22-00758 to accommodate a new closing schedule.
• Sponsors: Satya V. Rhodes-Conway, Barbara Harrington-McKinney, Nikki Conklin, Yannette Figueroa Cole, Matthew J. Phair, Sheri Carter

Date	Ver.	Action By	Action	Result
2/7/2023	2	COMMON COUNCIL	Adopt	Pass
2/2/2023	2	COMMUNITY DEVELOPMENT BLOCK GRANT COMMITTEE	Return to Lead with the Recommendation for Approval	Pass
1/30/2023	2	FINANCE COMMITTEE	RECOMMEND TO COUNCIL TO ADOPT - REPORT OF OFFICER	Pass
1/17/2023	1	FINANCE COMMITTEE	Refer
1/17/2023	1	COMMON COUNCIL	Refer	Pass
1/11/2023	1	Community Development Division	Referred for Introduction

Fiscal Note
The proposed resolution would authorize a $400,000 loan to Centro Hispano, Inc. from the Community Facilities Loan (CFL) Program. The CFL program was established in the Community Development Division’s (CDD) 2022 Capital Budget, which allocated $1 million in GO Borrowing to support smaller capital projects proposed by non-profit partners to meet facility needs. No funds were expended in 2022, and the unused appropriation was reauthorized in the 2023 budget.

Since the program was established, CDD has developed CFL program guidelines and an application process. The program guidelines set a maximum loan amount of the lesser of $400,000 or 20% of total eligible project costs, in the form of a zero percent long-term deferred loan. If the resolution is adopted, there would be $600,000 remaining in the CFL program budget to support requests from other applicants. No additional City appropriation would be required.

The proposed resolution also amends two prior resolutions (RES-22-00757 and RES-22-00758) related to the redevelopment of Centro Hispano, Inc.’s new community facility. The current resolution would remove Paragraph 12 from the prior resolutions related to requirements for simultaneous closings in order to accommodate the execution of a CFL loan agreement.
Title
SUBSTITUTE: Authorizing a $400,000 loan to Centro Hispano, Inc. from the Community Facilities Loan Program to help finance the construction of a community facility at 2403 Cypress Way, authorizing the Mayor and City Clerk to sign an agreement for that purpose, and amending previously enacted Resolutions 22-00757 and 22-00758 to accommodate a new closing schedule.
Body
WHEREAS, the City of Madison’s Community Facilities Loan (CFL) Program provides low-cost financing to support non-residential development projects undertaken by non-profit organizations in the City of Madison that involve the acquisition of property or substantial expansion, redevelopment, improvement or rehabilitati...