R-033-2018 - Loan Term Sheet to CW The Charli Partnership; 55 West 800 SouthR 18-2
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-33-2018
Loan to CW The Charli Partnership, LP
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO CW THE
CHARLI PARTNERSHIP FOR A RESIDENTIAL CONDOMINIUM DEVELOPMENT
PROJECT LOCATED AT 55 WEST 800 SOUTH.
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.
WHEREAS, the RDA and the governing body of Salt Lake City (the "City") adopted a
redevelopment plan entitled "West Temple Gateway Project Area Plan ("Project Area Plan")" on
August 1, 1987.
WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects
located in its project areas.
WHEREAS, CW The Charli Partnership, LP, a limited partnership (the "Developer"")
will construct a residential condominium development ("Project") on 0.79 acres of property
located at 55 West 800 South ("Property").
WHEREAS, the Developer has requested a loan from the RDA to assist with construction
costs for development of the Project.
WHEREAS, on November 2, 2018, the RDA Finance Committee reviewed the loan
application.
WHEREAS, based on the RDA Finance Committee's recommendations, the RDA staff
recommends the attached set of terms for a loan to the Developer, as borrower, for the Project
("Term Sheet").
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the
Redevelopment Agency of Salt Lake City that it approves the loan outlined in the Term Sheet
attached hereto, 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 opment Agency of Salt Lake City, this
27th day of November , 2018.
Approved as to form:
S
Derek Ki-n, Chairman
It e Gifty Attorney's Office
Kimberly K Craus
Dater v-4\ 2,01
Transmitted to the Executive Director on November 29, 2018.
The Executive Director:
tic_ does not request reconsideration
requests reconsideration at the next regular Agency meeting.
416Z;mcW4M'te
SEAL a
City Recorder
ueline M. Biskupski, Executive Director
HB_ATTY-#73956-v1-RDA_Resolution_Loan to_CW the Charli_Partnership
LOAN TERM SHEET
APPLICANT
CW The Charli Partnership, LP
ADDRESS
55 West 800 South
PROJECT
The Charli will be a multifamily residential project comprised of two components, the adaptive
reuse of the former Taffy Town building and the new construction of a tower to the south of the
existing structure ("Project"). The Project will generate 90 condominium units, with 26 units in
the Taffy Town building and 64 units in the tower. The tower will include a parking podium with
72 parking stalls.
PROPOSED LOAN TERMS
• Amount: The loan will be sized to the lower of $2,335,000 or a maximum of a 95% of
value as per an as -completed appraisal.
• Interest Rate:
RDA Loan Program Base Rate (U.S. Treasury Yield plus
3%) 5.95%
Public Benefit Interest Rate Reduction: Adaptive Reuse -0.5%
Public Benefit Interest Rate Reduction: Economic Impact -0.5%
Final Interest Rate* 4.95%
*The interest rate provided is an estimate. The final interest rate will be based on the U.S.
Treasury Yield Curve Rate, as determined by the term of the loan, at loan closing.
• Interest Accrual: Interest shall accrue during construction beginning upon the first
disbursement of funds.
• Term: 36 months.
• Repayment: The RDA shall be paid an amount equal to one hundred percent (100%) of
the net sales proceeds for each unit, preferably on a pro rata basis with the senior lender.
If payment on a pro rata basis is not feasible, the RDA shall be paid an amount equal to
one hundred percent (100%) of the net sales proceeds for each unit after the payout to the
primary lender has been accounted for. Any outstanding balance of the loan shall be
payable in full at the end of the loan term.
• Disbursement: Loan proceeds shall be disbursed through construction draws to begin
once developer equity is fully drawn -down, and on a pro rata basis with funds from the
senior lender. Any funds not disbursed 24 months after closing will be used to pay all
outstanding interest and principal from the loan. To the extent that project sources exceed
project uses at project close out, savings would be allocated to pay down the RDA loan.
• Expenses: Applicant will pay all loan expenses and closing costs, including title
insurance.
• Recourse: The loan shall be full recourse.
COLLATERAL AND GUARANTEES
• A mortgage lien, that may be subordinated to the senior lender, on properties located at
55 West 800 South.
• Personal guarantee from Colin Wright.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
• RDA approves all terms of the loan.
• Obtain approval through the RDA design review process.
• Secure sufficient sources of project financing.
• Obtain all required City approvals.
• Close on the purchase of the Property.
• Execute loan documents (e.g. promissory notes, loan agreements, security documents,
and guarantees) as deemed necessary by the RDA and its legal counsel.
• Receive approval from the RDA and its legal counsel of all matters pertaining to title,
legality of the loan, and the legality, sufficiency, and the form and substance of all
documents that are deemed reasonably necessary for the loan transaction.
• Provide evidence of insurance in such amounts and with such coverage as deemed
necessary by the RDA for the Property.
• Such other terms as recommended by the RDA's legal counsel and staff.