R-018-2018 - Spy Hop Forgivable Loan; 208 West 900 SouthR 18-2
REDEVELOPME NT AGENCY OF SALT LAKE CITY
RESOLUTION NO. R-18-2018
SPY HOP FORGIVABLE LOAN
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO SPY HOP
PRODUCTIONS FOR A DEVELOPMENT PROJECT LOCATED AT 208 WEST 900
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; and
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; and
WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects
located in its project areas; and
WHEREAS, Spy Hop Productions, Inc., a Utah nonprofit corporation (the "Developer")
will construct a community -services oriented development ("Project") on 0.40 acres of property
located at 208 West 900 South ("Property"); and
WHEREAS, the Developer has requested a loan from the RDA to assist with construction
costs for development of the Project; and
WHEREAS, the Developer has requested a waiver from RDA Loan Program Policy and
requests that the loan be provided as a forgivable loan; and
WHEREAS, on May 21, 2018, the RDA Finance Committee reviewed the loan application;
and
WHEREAS, based on the RDA Finance Committee's recommendations, RDA staff
recommends approval of the attached set of terms for a loan to Developer, as borrower, for the
Project ("Term Sheet").
THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of
Salt Lake City that the loan outlined in the Term Sheet attached hereto is approved, subject to
revisions that do not materially affect the rights and obligations of the RDA thereunder. 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 Redeye ,?pment • gency of Salt Lake City, this 12th day
of June, 2018.
The Executive Director:
54- does not request reconsideration
Derek Kitchen, Chairman
requests reconsideration at the next regular Agency meeting.
Jaequelir M. Biskupski, Executive Director
Approved as to form:
alt Lake City Attorney's Office
Kimberly K. Chytraus
Date: MAI2�j.Volt
LAKE
City Recorder
HB ATTY-#70483-v2-RDA Resolution SpyHop_Forgivable_Loan
TERM SHEET
FORGIVABLE LOAN
SPY HOP PROJECT LOCATED AT 208 WEST 900 SOUTH
Amount:
$1,000,000
Type:
Forgivable loan
Loan
Forgiveness:
No principal shall be forgiven in years one through five of the loan term.
Principal shall be forgiven in equal annual installments at the end of years six
through fifteen of the loan term if all Conditions are met.
Eligible Uses:
Construction costs
Term:
15 years (180 months), commencing upon conveyance of the property to the
Applicant.
Amortization:
N/A
Interest Rate:
0% if all Conditions are met
Default Interest
Rate:
If the Project fails to meet Conditions, the Applicant may be required to repay
the outstanding portion of principal and interest. Interest shall be due on the
portion deemed to be repaid, accrued as of the date Program funding was
dispersed, at a default interest rate of the US Treasury Yield, as of loan
closing, plus 300 basis points.
Payments:
No payments if all Conditions are met.
Disbursement:
Disbursement of funds shall be coordinated with the senior lender's funds.
Security:
A deed of trust, which may be subordinated, on the property located at 208
West 900 South.
Contingencies:
The Applicant shall obtain the legal, regulatory, and financial requirements
necessary to close on the Property. This shall include obtaining sufficient
financing and equity commitments to complete the Project in a timely
manner.
Conditions:
• The Project shall be constructed as agreed upon with the RDA, and operate
as the intended use over the term.
• The Project shall remain in good financial and legal standing over the term.