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CCR2013093-DeltaRestaurant LoanGrant COMMON COUNCIL - CITY OF MUSKEGO RESOLUTION #093-2013 APPROVAL OF A TIF 8 LOAN & GRANT Delta Restaurant S75 W17358 Janesville Road / Tax Key No. 2193.088 WHEREAS, James Paulos of Delta Restaurant has submitted a loan application form requesting a loan in the amount of $75,000 and associated grant monies; and WHEREAS, The Common Council, upon recommendation from the Community Development Authority, amended Tax Increment District #8 in November 2012 per Council Resolution #111-2012 to include businesses properties west of Lannon Drive/Janesville Road; and WHEREAS, It was the intent of the TID 8 amendment to utilize leftover TID monies for various redevelopment projects for the businesses within the amended boundaries; and WHEREAS, Said property is within the boundaries of amended TID #8 and within the boundaries of the adopted Redevelopment District #2; and WHEREAS, The Community Development Authority has recommended approval of up to a $75,000 loan at its October 21, 2013 meeting, subject to the conditions outlined herein being met; and WHEREAS, The Community Development Authority has recommended a grant approval, under the auspices of the adopted Commercial Building and Site Grant Fund of $7,500 at its October 21, 2013 meeting, subject to the conditions outlined herein being met. NOW, THEREFORE, BE IT RESOLVED That the Common Council of the City of Muskego, upon the recommendation of the Community Development Authority, does hereby approve a loan and grant submitted by James Paulos subject to the following conditions: Grant Conditions- A. Projects must be completed within 12 months of Common Council approval or the grant shall become void. B. Changes in the approved work, that affect the monetary value of the grant issued, must be approved by the CDA and possibly other City boards (The City’s Planning Commission if change is deemed substantial to what was originally approved). C. Approved changes in work verifications will be attached to the original applications dated and signed by the City’s Community Development Department. D. The applicant and Community Development Department staff will review proof of payment and completed work before the grant payment will be Resolution #093-2013 Page 2 made to the applicant. Payment will only be issued when it is verified that the work completed matches the work approved by the CDA and Common Council. E. Deviations from an approved plan may disqualify the applicant from this program. Loan Conditions- 1. That a $75,000 loan is provided to James Paulos of Gather Eatery and Bar (Formerly Delta Restaurant). 2. That 100% of the loan is matched with equity, letters of credit, and/or mortgages with the city in first position. 3. That the loan is provided with a term and amortization of no more than five (5) years, no more than a two-month deferral on principal payments, and an interest rate of 50% of the going prime rate. Interest-only payments would be made on a monthly basis during the deferral period. 4. That the borrowers provide to the City, or its designee, on an annual basis, semi-annual financial statements and signed copies of their Federal income tax return. BE IT FURTHER RESOLVED That the Mayor and Clerk-Treasurer are authorized to sign any documents in the name of the City. ND DATED THIS 22 DAY OF OCTOBER , 2013. SPONSORED BY: COMMUNITY DEVELOPMENT AUTHORITY Ald. Kevin Kubacki Ald. Robert Wolfe This is to certify that this is a true and accurate copy of Resolution #093-2013 which was adopted by the Common Council of the City of Muskego. _________________________ Clerk-Treasurer