R-025-2019 - Loan to Community Development Corporation of Utah for an affordable Housing Project located at 2960 R 19-2
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-25-2019
Notice of Funding Availability (NOFA) Funding Allocation for
High Opportunity Area Affordable Housing
Loan to Community Development Corporation of Utah
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING PRELIMINARY LOAN TERMS FOR A LOAN TO
COMMUNITY DEVELOPMENT CORPORATION OF UTAH FOR AN AFFORDABLE
HOUSING PROJECT LOCATED AT 2960 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, the Act provides that tax increment funds may be used for the purpose of
increasing the affordable housing supply within the boundaries of Salt Lake City.
WHEREAS, pursuant to a motion adopted by the RDA Board of Directors (the`Board") on
December 5, 2017, the Board set aside $10,000,000 for a"Notice of Funding Availability"
(NOFA), contingent upon an application and review process administered by the RDA to
facilitate funding of qualified projects which meet the goals established by the NOFA guidelines
with $4,500,000 of the funds to be dedicated toward areas of high opportunity. The high
opportunity funds remain open on an ongoing basis until funds are expended.
WHEREAS, the RDA facilitated a loan application and review process pursuant to the RDA's
NOFA policy set forth in resolution R-17-2018 (the "NOFA Policy"),
WHEREAS, the Community Development Corporation of Utah ("the Developer") submitted a
loan application for a loan of NOFA funds for an affordable housing project in a high
opportunity area to acquire a property located at approximately 2960 S Richmond Street.
WHEREAS, on October 15, 2019,the RDA's Finance Committee reviewed the Developer's
loan application.
WHEREAS, based on the Finance Committee's recommendations, the RDA staff recommends
that the Board approve a loan to Developer as described on Exhibit A attached hereto and
incorporated herein, and that the RDA shall provide a conditional commitment period
determined by the RDA, during which the Developer shall have the opportunity to obtain needed
financial, legal, and regulatory approvals as well as satisfy other conditions determined by the
RDA in order to finalize the loan terms.
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WHEREAS, pursuant to the NOFA Policy, if the Developer meets the conditions of the
conditional commitment it shall be invited to execute a Letter of Commitment to finalize the loan
terms as approved by the Finance Committee, subject to a set of conditions precedent to closing
of the loan.
NOW THEREFORE, BE IT RESOLVED BY THE BOARD that it approves the
preliminary loan terms as described in Exhibit A, subject to revisions that do not materially affect
the rights and obligations of the RDA hereunder. If the Developer successfully meets the required
conditions, the Board authorizes the Executive Director to negotiate and execute the conditional
commitment letter, the Letter of Commitment, and the loan agreements and other relevant
documents consistent with the NOFA policy,the terms contained on Exhibit A,the final loan terms
as determined by the Finance Committee, and incorporating such other terms and conditions as
recommended by the City Attorney's office.
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Passed by the Board of Directors of the Redevelopme Agency of S It Lake City, this loth
day of December 32019.
Amy Fowl hair
Approved as to form: 4&Aa
Slit Lakc lty ttorney's Office
Date1K.Chytra,,,
Date: 2
Transmitted to the Executive Director on December 10, 2019.
The Executive Director:
does not request reconsideration
requests reconsideration at the next regular Agency meeting.
Ja quel ne M. Biskupski, Executive Director
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EXHIBIT A
PRELIMINARY TERM SHEET:
Applicant: Community Development Corporation of Utah
Address: 2960 S Richmond Street
Conditional Commitment period: 24 months with milestones
Amount: $1,800,000
Term: 30 years
Interest Rate: 1-3%depending on project capacity for repayment
Repayment: Cashflow
Other Conditions: Prior to closing on the loan, the following conditions shall be met:
1. Property to be rezoned
2. Applicant to obtain tax credits and senior financing
3. RDA to approve the final financing package development plan
4. Applicant to receive all other City/RDA approvals
5. Final loan terms and conditions are reviewed and approved by the RDA Finance Committee
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