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Proposed Resolution - 5/10/2022REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Loan to Bicycle Collective RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO THE BICYCLE COLLECTIVE FOR A COMMERCIAL DEVELOPMENT PROJECT LOCATED AT APPROXIMATELY 901 SOUTH GALE 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. WHEREAS, the RDA and the governing body of Salt Lake City (the “City”) adopted the Granary District Redevelopment Project Area Plan on April 15, 1999. WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects located in its project areas. WHEREAS, Bicycle Collective, a Utah nonprofit entity, (the “Developer”) will construct a commercial development to house its headquarters (the “Project”) on the property consisting of approximately 0.26 acres located at approximately 901 South Gale Street (the “Property”). WHEREAS, the Developer has applied for a loan from the RDA to assist with construction costs for development of the Project. WHEREAS, on May 5, 2022, 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 (the “Term Sheet”) for a loan to the Developer, as borrower, for the Project. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City (the “Board”) 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. ATTACHMENT E: RESOLUTION Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ____ day of May, 2022. _________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Sara Montoya Date: April 21, 2022 The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder r i ~ EXHIBIT A: LOAN TERM SHEET APPLICANT Bicycle Collective (“Applicant”), a nonprofit entity ADDRESS Property located at approximately 901 S Gale Street PROPOSED LOAN TERMS  Amount: $1,750,000  Eligible Uses: Construction costs  Interest Rate: RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66% Public Benefit Interest Rate Reduction:  Public Amenities*  Transit Alternatives**  Architecture and Urban Design***  Sustainability**** -0.5% -0.5% -0.5% -0.5% Final Interest Rate***** 3.66% RDA staff will confirm the Project qualifies for the applicable interest rate reductions. Any changes to the project could result in changes to the interest rate reductions: *To be eligible for this interest rate reduction, the project will include a public art amenity **To be eligible for this interest rate reduction, the project will be required to provide employee shower, locker, and bicycle facilities as part of their overall development. ***The project participated and received approval through an RDA Design Review process. ****The project will be an all-electric building that will include rooftop solar and the Project has been designed to a LEED-Silver equivalent standard. *****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.  Term: 5 years  Amortization: 20 years  Payments: Hard repayments with balloon payment due at the end of the term.  Security: A first position lien on the property.  Disbursement: Loan proceeds shall be disbursed through construction draws. CONDITIONS FOR LOAN CLOSING Prior to loan closing, the Applicant will complete the following:  RDA approves all terms of the loan. LOAN TERM SHEET Bicycle Collective RDA LOAN RDA LOAN PROGRAM  Obtain all required City approvals.  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. OTHER CONDITIONS  The Project shall operate as the intended use over the term.  The Project shall remain in good financial and legal standing over the term.