Fiscal Note
The proposed resolution authorizes a Small Cap TIF Loan in the amount of $125,000 to Little Tibet Market & Cafe for real estate improvements at a commercial property at 1113 N. Sherman Ave. At loan closing, the City shall disburse an amount equal to 15% of the principal amount of loan to MDC from Program funds for servicing, and 15% of the principal amount of the loan to MDC from Program funds for servicing and closing fees. The aggregate (30%) of all such loan fees for this loan will be $37,500.
The TID 54 Project Plan includes $1.0 million for Small Cap TIF Loans. The Common Council approved the TID 54 Project Plan in 2023 (RES-23-00507, Leg file 78314). Council further authorized Madison Development Corporation (MDC) to administer the program in future TIDs through the adoption of the TID 51 Project Plan (RES-23-00470, Leg file 78323). Funds for this loan are included in the Economic Development Division's 2024 Adopted Capital Budget as TID-support GO Borrowing. No additional City appropriation is required.
One other Small Cap TIF loan in TID 54 is in process: $125,000 to Atwood Music Hall LLC (Leg file 82847). These two loans, including MDC service fees, total $325,000.
Title
Authorizing a loan to Little Tibet Market & Café or its assigns in the amount of $125,000 for real estate improvements to the commercial property at 1113 North Sherman Avenue through the TID 54 Small Cap TIF loan program using TID #54 incremental revenue as authorized in an amendment to the TID #54 Project Plan (RES 23-00507) adopted by the Common Council on July 25, 2023). (District 12)
Body
WHEREAS, the City of Madison has created the boundary and Project Plan for Tax Incremental District (TID) #54 on July 25, 2023 RES-23-00507 (File ID Number 78314); and
WHEREAS, the intent and purpose of the Project Plan, among other things, is to attract and retain business and employment in the area generally bounded by Packers Ave, First Street, Fordem Ave, and Aberg Ave; and
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