Development News for DeForest, Wisconsin

CDA Authorizes $3.5 Million Loan Commitment for Yahara Crossing Development

The Community Development Authority (CDA) discussed and authorized the Chairperson to execute a loan commitment letter for Yahara Crossing DeForest LLC. This commitment is for a $3.5 million loan from the Village to the development, with terms adjusted to meet WEDA's requirements for committed funding sources. The loan will have a fixed interest rate based on the Village's borrowing rate and a 35-year amortization schedule. Repayment is primarily based on available cash flow from the new building's operations, with provisions for deferring payments if cash flow is insufficient. A minimum annual payment of $50,000 is required, with the CDA making up any deficit. The funding is contingent upon the development receiving housing tax credits. Separately, a loan purchase agreement was mentioned, which would obligate the CDA to purchase the loan from the Village if the CDA sells another property (Jefferson Square) and has sufficient funds.