CCR2011135-CommercialLoanProgram-YoungsAuto
COMMON COUNCIL – CITY OF MUSKEGO
RESOLUTION #135-2011
RESOLUTION AUTHORIZING A LOAN FROM THE APPROVED COMMERCIAL
BUILDING AND SITE LOAN PROGRAM
(Donald Young – Young’s Auto Body)
WHEREAS, The Common Council approved the Commercial Building and Site Loan
Program per Resolution #105-2009 to help foster the development and redevelopment
of the properties affected by the upcoming Janesville Road reconstruction, and
WHEREAS, The Common Council has designated the Community Development
Authority (CDA) as the recommending approval body for the loan program, and
WHEREAS, A submittal from Donald Young who owns the land and structures at S76
W17833 Janesville Road (Young’s Auto Body) has been received, which requests a
$25,000 low interest loan from the city to aid in the financing of purchasing the current
property and building a new auto service facility on the current property; and
WHEREAS, The requested $25,000 would be a part of a $494,000 loan package that
includes $197,000 loan from Citizen’s Bank of Mukwonago, $201,000 loan from the
U.S. Small Business Administration (SBA), and $75,000 in equity; and
WHEREAS, Young’s Auto Body has resided at the current location for many years and
the current structure must be removed to allow for the Janesville Road reconstruction in
2013; and
WHEREAS, The CDA has recommended approval of the loan request of $25,000
subject to the restrictions outlined below at its September 20, 2011 meeting.
NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of
Muskego does hereby allow a loan of $25,000 to S76 W17833 Janesville Road subject
to the following restrictions:
A. Projects must be completed within 12 months of Common Council
approval or the loan shall become void.
B. That a $25,000 loan is provided to Donald Young, d/b/a Young’s Auto,
LLC, from the City of Muskego’s Janesville Road Commercial Building &
Site Loan Program. 2.
C. That the City’s loan is matched with a loan of $197,000 from Citizen’s
Bank of Mukwonago, a loan of $201,000 from the U.S. Small Business
Administration (SBA) 504 loan program, and $75,000 in owner’s equity.
D. That the City loan is provided with a three-year term, a three-year deferral
of principal and interest payments with a payment of accrued interest and
principal at the end of the loan term, and an interest rate of 1.625 percent.
Reso. #135-2011 Page 2
E. That the City loan is secured with a third mortgage on the Janesville Road
real estate (valued at $700,000) and the personal guaranty of Donald
Young.
F. That the Company is current on all lending conditions required by Citizen’s
Bank of Mukwonago and the SBA.
G. That the borrower provides to the City, or its designee, on an annual
basis, signed copies of the Federal income tax return for Young’s Auto,
LLC.
BE IT FURTHER RESOLVED, That the grant may be issued by the Department of
Finance and Administration once the above restrictions are satisfied per the discretion
of the Community Development Director.
DATED THIS 27th DAY OF __SEPTEMBER _, 2011.
SPONSORED BY:
COMMUNITY DEVELOPMENT AUTHORITY
Ald. Tracy Snead
Ald. Dan Soltysiak
This is to certify that this is a true and accurate copy of Resolution #135-2011 which
was adopted by the Common Council of the City of Muskego.
____________________________
Clerk-Treasurer