Fiscal Note
The proposed resolution would authorize a $400,000 loan to The River Food Pantry, 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.
The CFL program is also funded with $500,000 in Community Development Block Grant (CDBG) funds to support acquisition projects.
CFL program guidelines for acquisition and construction loans 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.
As of October 23, 2023, four CFL loans have been approved by the Common Council:
· $400,000 (RES-23-00125, File 75563)
· $68,000 (RES-23-00191, File 76394)
· $87,000 (RES-23-00411, File 77544)
· $400,000 (RES-23-00562, File 79128)
$45,000 in City General Obligation borrowing remains in the CFL capital program budget to support requests from other applicants. There are $388,800 in CDBG funds available for acquisition projects. No additional City appropriation would be required.
Title
Approving a loan of up to $400,000 of federal Community Development Block Grant funds to The River Food Pantry, Inc. from the Community Facilities Loan Program to help finance the acquisition of real property generally located at 2102 and 2202 Darwin Road, and authorizing the Mayor and City Clerk to sign an agreement for that purpose. (District 18)
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 ...
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