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013 of 2020 - Housing Trust Fund Loan Modification Request for North 4th LLC and Project Open 2 LLCRESOLUTION NO. OF 2020 Authorizing a loan amendment from Salt Lake City's Housing Trust Fund To North 4th LLC and Project Open 2 LLC (North 4th/Project Open Phase II) WHEREAS, Salt Lake City Corporation (the "City") has a Housing Trust Fund to encourage affordable and special needs housing development within the City; and WHEREAS, North 4th LLC ("North 4th") and Project Open 2 LLC ("Project Open") have an existing loan to facilitate the long-term financing of the development of a mixed income housing development located at 529 West 400 North, Salt Lake City, Utah (the "Property"); and WHEREAS, when complete, the site is projected to include 95 units, with 74 considered tax credit units targeting those at 50% of area median income and below, with 25 of the 7 4 units set aside for special populations (5 units for formerly homeless, 8 units for refugees and 12 units for physically disabled); and WHEREAS, North 4th and Project Open have applied for an amendment to the existing loan to release North 4th as a borrower and permit subdivision of the Property; and WHEREAS, on October 7, 2019, the Housing Trust Fund Advisory Board (the "Board") recommended approval of the loan amendment as set forth on the attached term sheet (the "Term Sheet"); and WHEREAS, the City recommends the loan amendment described on the attached Term Sheet based on its underwriting of the Project. NOW THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah: 1. That the City Council hereby approves amending the existing loan documents as set forth on the Term Sheet, subject to revisions that do not materially adversely affect the rights and obligations of the City hereunder. 2. · That Erin Mendenhall, Mayor of Salt Lake City, Utah, on behalf of Salt Lake City Corporation is hereby authorized to negotiate and execute the requisite loan documents and any other relevant documents consistent with the Term Sheet, and incorporating such other terms and agreements as recommended by the City Attorney's office, and to act in accordance with their terms. R 20-1 R 20-7 13 Passed by the City Council of Salt Lake City, Utah, this ____ day of ____ _ 2020. ATTEST: CITY RECORDER SALT LAKE CITY COUNCIL By~------------- CHAIR Approved As To Form SaltL I~e City Attorney's Office r 19th May ASSISTANT Chris Wharton (May 29, 2020 12:43 MDT) Chris Wharton Kory Solorio (Jun 1, 2020 09:10 MDT) Kory Solorio Term Sheet North 4th/Project Open Phase II Project: North 4th/Project Open Phase II Borrower: North 4th LLC and Project Open 2 LLC (North 4th LLC to be removed) Address: 529 West 400 North Loan Amount: $1,000,000 Loan Maturity: 18 year term/40 year amortization Interest Rate: 2% simple interest per annum Interest Accrual: Interest shall start to accrue on the outstanding balance upon the closing date Repayment Terms: Hard monthly repayment (borrower is current as of 10/18/2019) Collateral and Priority: Second position trust deed on property Conditions: Standard loan conditions approved by City Attorney's Office Additional Information: Modification request is to remove one of two current borrowing entities (removal of North 4th LLC, leaving Project Open 2 LLC as sole borrower) and subdivision of encumbered parcel