Fiscal Note
The proposed resolution would authorize an $87,000 loan to YWCA Madison, 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 for acquisition and construction loans, improvement loans, and leasehold improvement loans. The program guidelines for improvement loans set a maximum loan amount of the lesser of $300,000 or 50% of total eligible project costs, in the form of a zero percent long-term deferred loan. As of April 25, 2023, two CFL loans have been approved by the Common Council. One loan was for $400,000 (RES-23-00125, File 75563) and the second was for $68,000 (RES-23-00191, File 76394) leaving $532,000 remaining in the CFL program budget, in City GO Borrowing, to support requests from other applicants. If this resolution is adopted, there would be $445,000 remaining in the CFL program budget to support requests from other applicants. No additional City appropriation would be required.
Title
Approving a loan of up to $87,000 to YWCA Madison, Inc. from the Community Facilities Loan Program to help finance the rehabilitation of programming space at the Empowerment Center located at 2040 S. Park Street, and authorizing the Mayor and City Clerk to sign an agreement for that purpose.
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 rehabilitation of property the organizations currently own or lease; and,
WHEREAS, the City’s objective through the CFL Program is to create or improve safe, accessible, energy efficient and well-maintained community and neighborhood facilities; and,
WHEREAS, YWCA Madison, Inc. has applied to the CFL Program for assistance to help renovate their Empowerment Center located at 2040 S. Park Street to create a community computer lab, build out more office/work spaces for staff members, as well as make necessary site and building improvements related to successful operations and services to their clients and community members throughout Dane County; and,
WHEREAS, per the CFL Program guidelines, YWCA Madison, Inc. intends to provide programming and other support at the community facility primarily to low-income households, and meets all other eligibility requirements of the CFL Program; and,
WHEREAS, YWCA Madison, Inc. presents a total project budget of approximately $172,158 and the CFL Program guidelines offer financial assistance for improvements in an amount of up to the lesser of $300,000 or 50% of total eligible projects costs; and,
WHEREAS, funds under the CFL Program are offered to awardees in the form of a zero percent long-term deferred loan, repayable upon the sale or change of use of the property.
NOW, THEREFORE, BE IT RESOLVED, that the Common Council approves a loan of up to $87,000 from the Community Facilities Loan Program to YWCA Madison, Inc. for use for renovations at 2040 S. Park Street, Madison; and,
BE IT FURTHER RESOLVED that, that the Council authorizes the Mayor and City Clerk to execute, deliver, publish, file and record such other documents, instruments, notices and records, and take such other actions as shall be deemed necessary or desirable to accomplish the intent of this Resolution, and to comply with and perform the obligations of the City.