019 of 2011 - authorizing a loan from the Housing Trust Fund to Tannach Properties LLC for the State Street Plaza 1
R 11-1
R 11-7
RESOLUTION NO. 19 _OF 2011
AUTHORIZING A LOAN FROM
SALT LAKE CITY'S HOUSING TRUST FUND
TO TANNACH PROPERTIES, LLC FOR
THE STATE STREET PLAZA APARTMENT PROJECT
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, Tannach Properties, LLC, has applied to the City for a loan from the City's
Housing Trust Fund in order to construct the State Street Plaza Apartment Project to be located
at 237-255 South State Street in Salt Lake City that will consist of 180 apartment units, 136 of
which are affordable rental housing units for residents at 60% of the City's area median income
or lower.
THEREFORE, BE IT RESOLVED by the City Council of Salt Lake City, Utah:
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1. Does hereby approve Salt Lake City to enter into a loan agreement withTannach
Properties, LLC, from Salt Lake City's Housing Trust Fund in the amount of$750,000 at 1%
simple interest per annum for the first five years, or when the Tannach Properties LLC has
achieved a 1.28 debt coverage ratio for the property, whichever comes first, and then raised to
2% over the years remaining (no less than 25). Any deferral in payments be limited to two
years, or the applicant receiving a certificate of occupancy for the project, whichever is the
shorter.
2. Tannach Properties, LLC, will use the loan funds to construct the State Street
Plaza Apartment project at 237-255 South State Street in Salt Lake City, Utah.
3. Ralph Becker, Mayor of Salt Lake City, Utah, following approval of the City
Attorney, is hereby authorized to execute the requisite loan agreement documents on behalf of
Salt Lake City Corporation and to act in accordance with their terms.
Passed by the City Council of Salt Lake City, Utah, this 17th day of
May , 2011.
�ytECIT.�.�T SALT LAKE CITY COUNCIL
, t By:
CHAIR
ATTEST: \RATE
APPRO ED AS TO RM
/ F SALT 1 A ORNEI4 S OFFICE
BY:
DAT .
'-ItITY RE OR
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