HomeMy WebLinkAbout16. 22-104MARCH 8, 2022 22-104 RESOLUTION
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PURPOSE: APPROVE AMENDMENT TO FINANCIAL ASSISTANCE FOR
SMITH SCHOOL LOW INCOME HOUSING REDEVELOPMENT
INITIATED BY: COMMUNITY DEVELOPMENT DEPARTMENT
WHEREAS, the Department of Community Development submitted a
Neighborhood Investment Fund grant application to the State of Wisconsin Department
of Administration in November 2021 to provide financial assistance to developers
working on low income housing projects, and the awards of said grant have not yet
been announced;
WHEREAS, on January 25, 2022, the Common Council approved an assurance
that the City would provide a $300,000 loan with a 0% interest rate and 15 year payback
period using Healthy Neighborhood Initiative funding to Smith School Lofts, LLC for
the Smith School low income housing redevelopment in the event the City is not
awarded a Neighborhood Investment Fund grant; and
WHEREAS, Smith School Lofts, LLC has requested that the 15 year payback
period of said loan be extended to a 17 year payback period so that it has a maturity
date similar to the loan Smith School Lofts, LLC received from the Wisconsin Economic
Development Authority (WHEDA), thereby ensuring a refinance can be completed and
both loans can be paid off at the same time.
NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of
Oshkosh that the financial assistance for the Smith School low income housing
redevelopment is hereby amended to have a 17 year payback period.
City Hall, 215 Church Avenue P.O. Box 1130 Oshkosh, WI 54903-1130 920.236.5000 http://www.ci.oshkosh.wi.us
TO: Honorable Mayor and Members of the Common Council
FROM: Kelly Nieforth, Community Development Director
DATE: March 3, 2022
RE: Approve Amendment to Financial Assistance for Smith School Low Income
Housing Redevelopment
BACKGROUND
The Department of Community Development submitted a Neighborhood Investment Fund
grant application to the State of Wisconsin Department of Administration in November 2021 for
the purpose of providing financial assistance to developers working on low income housing
projects. The awards have not yet been announced. On January 25, 2022, the Common Council
approved an assurance that the City would provide a $300,000 loan with a 0% interest rate and
15 year payback period using Healthy Neighborhood Initiative funding to Smith School Lofts,
LLC for the Smith School low income housing redevelopment project. The assurance was
provided to ensure the project could move forward in the event the City was not awarded a
Neighborhood Investment Fund grant to contribute to the project.
ANALYSIS
Smith School Lofts, LLC has requested that the 15 year payback period of the $300,000 loan be
extended to 17 years to ensure that the City loan has a similar maturity date to the loan they
received from the Wisconsin Economic Development Authority (WHEDA), thereby ensuring a
refinance can be completed and both loans can be paid off at the same time. It will create an
issue for WHEDA if the City loan matures two years before their loan. The compliance period
for the WHEDA loan is 15 years, but it usually takes 18-24 months of construction and
stabilization before it is converted into a permanent loan.
RECOMMENDATION
The Common Council approves amending the financial assistance to Smith School Lofts, LLC
by extending the payback period of the $300,000 loan to 17 years.
Respectfully Submitted, Approved,
Kelly Nieforth John Fitzpatrick
Community Development Director Assistant City Manager / Director of
Administrative Services