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