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File #: 78323    Version: 1 Name: 12850 - Small Cap TIF Admin Contract with MDC
Type: Resolution Status: Passed
File created: 6/12/2023 In control: Economic Development Division
On agenda: 7/11/2023 Final action: 7/11/2023
Enactment date: 7/14/2023 Enactment #: RES-23-00470
Title: Authorizing the Mayor and City Clerk to execute a sole service contract with Madison Development Corp. (“MDC”) to administer a Small Cap TIF loan program to provide financial assistance to small businesses located within TID 51 (South Madison) and its Half Mile Rule boundary and to small businesses located within the TID boundaries of all TIDs created hereafter, including Half Mile Rule boundaries, that include a Small Cap TIF program for small business in their respective project plans.
Sponsors: Satya V. Rhodes-Conway, Isadore Knox Jr., Amani Latimer Burris, Charles Myadze
Attachments: 1. Madison Development Corporation - Non-Competitive Selection Request - CC Approval Required June 2023.pdf
Related files: 80813
Fiscal Note
The proposed resolution authorizes a sole source contract with Madison Development Corp. (“MDC”) to provide loan administration services to small businesses located within the TID 51 (South Madison) boundary and its Half Mile Rule boundary as allowed by the TIF statute. The approved TID 51 Project Plan includes $1,500,000 for this Small Cap TIF Program and its administration. No additional City appropriation is required.

The proposed resolution also authorizes MDC to provide the loan administration services to future TIDs that include a Small Cap TIF loan program for small business in their respective project plans.

MDC will market the program to eligible small business borrowers, conduct credit review and underwriting, secure approval by its loan committee and submit a Loan Summary Report to the City that will be included in an authorizing resolution introduced to the Common Council referred to the Finance Committee and reported to Common Council for final consideration and approval.

MDC will charge loan service fees, paid with TIF proceeds, calculated as 15% of each Small Cap TIF loan authorized. Total MDC service fees for all Small Cap TIF loans authorized within a TID, are not to exceed $75,000.
Title
Authorizing the Mayor and City Clerk to execute a sole service contract with Madison Development Corp. (“MDC”) to administer a Small Cap TIF loan program to provide financial assistance to small businesses located within TID 51 (South Madison) and its Half Mile Rule boundary and to small businesses located within the TID boundaries of all TIDs created hereafter, including Half Mile Rule boundaries, that include a Small Cap TIF program for small business in their respective project plans.
Body
WHEREAS on November 24, 2020 the City of Madison adopted RES 20-00772 authorizing the Mayor and City Clerk to execute a sole source service contract with Madison Development Corp. (“MDC”) to administer a $500,000 Small Cap TIF loan program for qualifying ...

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