015 of 2021 - Richmond Flats Loan Amendment1
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. 15
Term Sheet Amendment No. 2 for Loan to
Community Development Corporation of Utah
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING A SECOND AMENDED TERM SHEET FOR A LOAN
TO COMMUNITY DEVELOPMENT CORPORATION OF UTAH FOR AN AFFORDABLE
HOUSING PROJECT LOCATED AT 2960 SOUTH RICHMOND STREET, 2964 SOUTH
RICHMOND STREET, AND 2970 SOUTH RICHMOND STREET.
WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the
business and exercise the powers provided for in the Utah Community Reinvestment Agency Act
(the “Act”).
WHEREAS, on October 10, 2019, the Board of Directors of the RDA (the “Board”) approved
resolution R-25-2019 allocating the funding and approving the preliminary terms of a loan to
Community Development Corporation of Utah (“CDCU”) in connection with a mixed-income
housing project to be known as “Richmond Flats” located at approximately 2960 S Richmond
Street, 2964 Richmond Street, and 2970 Richmond Street (the “Project”).
WHEREAS, on May 5, 2020, the Board approved resolution R-10-2020 amending the terms of
the loan to CDCU for the Project that structures the loan into two phases. Phase I was executed
and funded in 2020 as a short-term loan in the amount of $1,520,000 for land acquisition. Phase
II was approved as a construction-to-permanent financing loan in an amount of up to $1,800,000,
which would include the outstanding balance of the loan provided through Phase I and any
additional funds up to $1,800,000.
WHEREAS, prior to funding Phase II of the loan, certain conditions must be achieved pursuant
to the approved terms. One condition is that the loan is secured with a lien on both the land and
improvements.
WHEREAS, CDCU has entered into a partnership with Blueline Development as Richmond Flats,
LLLP (the “Developer”). CDCU will continue to own the land and will lease the land to the
Developer for development of the Project. CDCU has requested an amendment to the loan terms
in order to facilitate the development of the Project.
WHEREAS, on September 10, 2021, the RDA’s Finance Committee reviewed a proposed
amendment to the loan terms previously approved by the Board.
WHEREAS, based on the Finance Committee’s recommendations, the RDA staff recommends
the attached set of amended terms (the “Term Sheet”) for the Phase II loan to CDCU.
2
NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE
REDEVELOPMENT AGENCY OF SALT LAKE CITY, that the loan to CDCU outlined in
the Term Sheet attached hereto is approved, subject to revisions that do not materially affect the
rights and obligations of the RDA hereunder. The Board authorizes the Executive Director to
negotiate and execute the loan agreement 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.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this 14th day
of September, 2021.
________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Kimberly K. Chytraus
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
Kimberly Chytraus (Sep 16, 2021 11:16 MDT)
Sep 16, 2021
Ana Valdemoros (Oct 5, 2021 11:10 MDT)
Erin Mendenhall (Oct 5, 2021 15:56 MDT)
4
Cindy Trishman (Oct 5, 2021 16:36 MDT)
3
EXHIBIT A
Term Sheet Amendment for Loan to
Community Development Corporation of Utah
Amended Request: Up to $1,800,000 in 2 phases
Phase: I (Acquisition) II (Permanent)
Amount: Up to $1,520,000 (or 100% of as-is
appraised value)
Not to exceed $1,800,000 (including the outstanding
balance of the acquisition loan amount from Phase I)
Interest Rate: 1%, interest shall begin to accrue
upon disbursement of funds.
1-3% depending on capacity for repayment
Term/Am: 2 years (24 months) 30 years
Collateral: First position lien A lien on the land, that may be subordinated to
senior lenders
[Amended to delete the lien on improvements]
Payments: Deferred payments, with the
outstanding principal balance,
together with all accrued and unpaid
interest, due and payable to at the
end of the Term, unless Phase II of
the loan is executed.
Payments shall be based on annual surplus cashflow
paid to borrower unless the project demonstrates
financial capacity for guaranteed monthly
repayments. If the loan has not been fully repaid by
the end of the loan term, the entire outstanding loan
amount shall be due at the expiration of the term.
Contingencies On a quarterly basis, the Applicant
shall provide the RDA with written
notice to provide assurance that, as
the Project progresses, it achieves
the provisions of the loan agreement
Applicant shall be required to meet the following prior
to the execution of Phase II:
• Property to be rezoned
• Obtain sufficient sources of financing
• RDA to approve final financing package
development plan
• Completing an RDA design review process
• Obtaining zoning and permitting approvals
• Applicant to receive all other City/RDA
approvals
Phase II Approval n/a Evaluation and approval of Phase II funding shall be
provided by the RDA Finance Committee in
accordance with 1) satisfaction of the Contingencies
contained herein, and 2) review and approval of the
final loan terms pursuant to the terms contained
herein.
RDA Resolution 15 of 2021 Richmond Flats
Loan Amendment
Final Audit Report 2021-10-05
Created:2021-09-16
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAu36vrC8RDaJiZ34ACzSRkzobeIL7U_Jh
"RDA Resolution 15 of 2021 Richmond Flats Loan Amendment"
History
Document created by Thais Stewart (thais.stewart@slcgov.com)
2021-09-16 - 3:52:04 PM GMT- IP address: 204.124.13.151
Document emailed to Kimberly Chytraus (kimberly.chytraus@slcgov.com) for signature
2021-09-16 - 3:55:08 PM GMT
Email viewed by Kimberly Chytraus (kimberly.chytraus@slcgov.com)
2021-09-16 - 5:15:30 PM GMT- IP address: 204.124.13.222
Document e-signed by Kimberly Chytraus (kimberly.chytraus@slcgov.com)
Signature Date: 2021-09-16 - 5:16:01 PM GMT - Time Source: server- IP address: 204.124.13.222
Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature
2021-09-16 - 5:16:03 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2021-09-17 - 3:18:01 PM GMT- IP address: 204.124.13.222
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2021-10-05 - 4:13:34 PM GMT- IP address: 172.56.40.82
Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
Signature Date: 2021-10-05 - 5:10:44 PM GMT - Time Source: server- IP address: 136.60.130.16
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2021-10-05 - 5:10:46 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2021-10-05 - 6:43:08 PM GMT- IP address: 136.36.227.77
Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com)
Signature Date: 2021-10-05 - 9:56:18 PM GMT - Time Source: server- IP address: 136.36.225.245
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2021-10-05 - 9:56:20 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2021-10-05 - 10:36:47 PM GMT - Time Source: server- IP address: 204.124.13.151
Agreement completed.
2021-10-05 - 10:36:47 PM GMT