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Home My WebLink About04/25/2024 - Meeting Minutes MINUTES OF THE ECONOMIC DEVELOPMENT LOAN FUND (EDLF) LOAN COMMITTEE Thursday, April 25, 2024 1:00 P.M. 1. Roll Call The following members of the committee were present: Trent Wardrop Staci Olsen Darby Egbert Scotty Lyttle Taylee Foulger Leslie Nuon Kate Werrett Nathan Stott The following members of the committee were absent: Jake Maxwell, Chairperson Ann Marie Wallace, Vice Chairperson Heather Royall Cara Lindsley Those also present: Will Wright, Salt Lake City Economic Development; Brian Pantle, Salt Lake City Economic Development Manager; Andie Feldman, Salt Lake City Economic Development; Ibrahim Ramazani, Salt Lake City Economic Development; Carl Spikner, Grow America. Roberta Reichgelt, Salt Lake City Economic Development. 2. Approval of the minutes A. Review and Approval of the February 29, 2024, EDLF Minutes EDLF Committee members will review the February 29, 2024, minutes and consider for approval. Ms. Egbert made a motion to approve the February 29, 2024, minutes. Mr. Wardrop seconded. Upon roll call, the motion passed unanimously. 3. DED Staff Announcements A. Kiara Polee—New Project Coordinator Introduction—Roberta Reichgelt Ms. Polee was announced as the new Project Coordinator for the Business Development Team. Her main focus will be managing the City's Construction Mitigation Grant, Economic Development Loan Program and Other Business Development initiatives. B. Open Meeting Reminder—Roberta Reichgelt C. Loan Committee Meeting and EDLF Pipeline Discussion—Roberta Reichgelt Ms. Reichgelt brought to the attention of the council a procedural update, suggesting the possibility of presenting multiple loan applications during future committee meetings. Traditionally, these meetings have featured one loan per session. However, with the committee's approval, the option to present multiple loans per meeting is now being considered to streamline the process and accommodate the workload more efficiently. 4. Business Items A. Open Meetings Training Video— Sara Montoya hlt2s://www.youtube.com/watch?v=QNVBuXB7vkM&t=3s B. Review and Recommendation for Six Sailor Cider Loan—Will Wright. 1. Loan Overview and Discussion—Will Wright. Mr. Wright provided a loan overview to the EDLF Loan Committee which was set to review a loan application for Six Sailor, a recently incorporated business in Utah, seeking a $100,000 loan. The funds were earmarked for various purposes including building renovation, machinery and equipment, furniture and fixtures, construction contingencies, and working capital. The vision for Six Sailor revolves around establishing The Maiden's Grasp, a premier dining destination in downtown Salt Lake City's Gateway area. The restaurant aims to offer a distinctive experience blending cider expertise, a dual-menu concept, and a 1920s aesthetic, complemented by Senegalese cuisine. The company's recent liquor license acquisition and a significant sales surge in March indicate promising growth potential,prompting the desire to expand cider production capacity and enhance The Maiden's Grasp into a full-service restaurant. The ownership team comprises Michael Patton, who boasts extensive cider-making experience spanning over 16 years, complemented by a background in entrepreneurship,product development, and filmmaking. Additionally, lbou Fall and Pape Alioune Sall, native chefs from Senegal with profound culinary expertise, are integral members of the team. Their mastery of Senegalese cuisine, coupled with collaboration on unique cider blends,promises to create a dining experience unparalleled in Utah. The synergy between Six Sailor Cider, The Maiden's Grasp, and Weathered Waves bar underscores a cohesive vision to redefine culinary and beverage experiences in Salt Lake City, setting the stage for a vibrant addition to the local dining scene. The Committee enquired about the business location,business grants,profit and loss statement, projections for the cost of goods sold, financial projections, income statement, student loans servicing, debt servicing with another lender, governmental loans, cashflow statements, assets and liabilities for this new business venture, and the projections for the business moving forward. 2. 20-Minute Break: 20-minute break to tally the evaluation from scores. Committee members took a 20-minute recess to complete the scoring matrix Six Sailor Cider. 3. Evaluation Scoring, Final Discussion, and Vote. The loan request for Six Sailor Cider scored 63.33, which doesn't meet the minimum threshold score of 70 to recommend the loan to the City Council. 4. Loan Committee Review and Recommendation of Amendment to Terms for Six Sailor Cider. The committee unanimously decided against recommending the loan to the council, citing a score below the minimum threshold of 70. This decision was reached as Six Sailor's projections and assumptions did not align with the business's historical performance. The discrepancy raised concerns about inflated numbers, posing potential challenges for loan repayments and servicing in the future. Ms. Darby Made a motion to not recommend approval of the loan to the City Council. Ms. Foulger seconded the motion. Upon roll call motion passed unanimously. 5. Final Discussion No additional items were discussed. 5. Adiournment There being no further business, the meeting was adjourned. Jake Maxwell, Chairperson This document and the recording constitute the official minutes of the Economic Development Loan Fund Committee meeting held February 29, 2024.