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06/06/2024 - Meeting Minutes MINUTES OF THE ECONOMIC DEVELOPMENT LOAN FUND (EDLF) LOAN COMMITTEE Thursday, June 6, 2024 1:00 P.M. 1. Roll Call The following members of the committee were present: Nathan Stott Scott Lyttle Cara Lindsey Heather Royall Darby Egbert Leslie Nuon The following members of the committee were absent: Jacob Maxwell Trent Wardrop Ann Marie Wallace Staci Olsen Those also present: Will Wright, Salt Lake City Economic Development; Ibrahim Ramazani, Salt Lake City Economic Development; Andie Feldman, Salt Lake City Economic Development; Carl Spikner,Grow America; Peter Makowski, Salt Lake City Economic Development; Brian Pantle, Salt Lake City Economic Development; Kiara Polee, Salt Lake City Economic Development 2. Approval of the minutes A. Review and Approval of the May 23, 2024, EDLF Minutes EDLF Committee members will review the May 23, 2024, minutes and consider for approval. Mr. Lyttle made a motion to approve the May 23, 2024, minutes. Ms. Royall seconded the motion. Upon roll call, the motion passed unanimously. 3. DED Staff Announcements A. None 4. Business Items A. Review and Recommendations for Ski Trucks loan—Andie Feldman 1. Loan Overview and Discussion—Andie Feldman Ms. Feldman presented the Ski Trucks, LLC loan application to the EDLF Loan Committee, outlining their request for a $300,000 loan. As a family-owned and operated ski & snowboard warehouse, Ski Trucks is dedicated to service, sustainability and accessibility. It is their mission to educate their customers by providing a level of expertise that not only allows them to enjoy winter sports but empowers them to progress as skiers and riders. Above all, Ski Trucks want to make skiing & snowboarding more enjoyable and affordable for everyone. The Committee reviewed and discussed the business's financial landscape, historical and projected figures, long-term liabilities,payroll projections, and projected project completion dates. Ms. Royall stated a concern around the application length process effecting the interest rate on this loan. Mr. Spikner explained details around the delay were due to working with the applicants to meet eligibility requirements. Ms. Royall stated this practice should be reconsidered and she feels is inconsistent within the financial world. Ms. Lindsey asked how or why the applicant's eligibility had changed, since the previous 2 years the applicant was ineligible. Mr. Spikner states the POS system and process being incorporated into the business has ensured success moving forward. After thorough deliberation and review of the financial data presented, the Committee advanced the loan application to the scoring phase. B. Review and Recommendations for City Cakes loan—Will Wright 1. Loan Overview and Discussion—Will Wright Mr. Wright presented the City Cakes & Cafe SLC, LLC, DBA City Cakes loan application to the EDLF Loan Committee, for a second time. Mr. Wright addressed the previous concerns the Committee had regarding the applicants' low credit scores. The owners have agreed to register for a course from NeighborWorks of Salt Lake City's Financial Education Credit Building Course. In addition, the cost of the building that the applicants look to acquire has dropped in price by $50,000. The applicant has also lowered their loan request from$300,000 to $175,000. Ms. Lindsey asked for clarification regarding existing debt. Mr. Wright explained that the debt will be going with the original owner as they make a transition in overall ownership. Mr. Lyttle asked for additional information regarding the significant drop in the loan request. Mr. Wright explained leveraging that will take place internally to accommodate for the additional funds. The Committee reviewed and discussed the business's financial landscape, historical and projected figures, long-term liabilities,payroll projections, and projected project completion dates. After thorough deliberation and review of the financial data presented for City Cakes & Cafe, LLC, the Committee advanced the loan applications to the scoring phase. 2. 30-Minute Break: 30-minute break to tally the evaluation from scores. The Committee members took a 30-minute recess to complete the scoring matrix for Ski Trucks, LLC and City Cakes. 3. Evaluation Scoring, Final Discussion, and Vote. The loan request for Ski Trucks scored 70, which does meet the minimum threshold score of 70 to recommend the loan to the City Council. The loan request for City Cakes scored 68.4, which does not 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 City. Ms. Egbert made a motion to recommend approval of the Ski Trucks loan onto the City Council. Ms. Royall seconded the motion. The motion passed unanimously. Ms. Royall made a motion, not to recommend approval of the City Cake's loan onto the City Council. Ms. Egbert seconded the motion. The motion passed unanimously. 5. Final Discussion Ms. Royall suggested when reviewing multiple loans, we should fully present and deliberate on the initial,prior to presenting and deliberating on the next one. Business Development staff members agreed to this change in future meetings. 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 June 6, 2024.