Council Provided Information - 5/10/2022REDEVELOPMENT AGENCY OF SLC
BICYCLE COLLECTIVE –901 S GALE STREET
LOAN REQUEST
RDA BOARD OF DIRECTORS MEETING –MAY 10, 2022
PROJECT OVERVIEW
901 S Gale Street
PROJECT SUMMARY
APPLICANT
•Bicycle Collective
PROJECT CONCEPT
•15,000 square foot multi-use building that will house headquarters of
the organization including retail, programming, and operations space
LOAN REQUEST
•$1,750,000 construction loan
TIMELINE
•If financing approved, construction anticipated to be complete Q1 2023
PROJECT SUMMARY
RDA OWNED-LAND
•In 2017, through RFP, RDA selected Bicycle Collective to negotiate the
development the property.
•In 2018, the RDA Board approved a land write down for the property in
exchange for public benefits.
•Land will be conveyed to Bicycle Collective once financing sources are
secured.
PUBLIC BENEFITS
•Public Amenities, Transit Alternatives, Architecture and Urban Design,
Sustainability.
PROPOSED TERMS
AMOUNT
•$1,750,000
INTEREST RATE
*To be eligible for interest rate reductions, the project will be required to meet the criteria outlined in section VI of memo.
**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/AMORTIZATION
•5 years/20 years
COLLATERAL
•First-position lien on property
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%
RENDERINGS
CONSIDERATIONS AND NEXT STEPS
•RDA Finance Committee provided a positive recommendation to the RDA Board.
•Loan repayment is based on the organization’s ability to fundraise.
•Bicycle Collective anticipates additional fundraising once building is under
construction.
•RDA will have a lien on property (land and improvements) if they are unable to pay
back the loan.
•RDA Board makes final decision.
The Bicycle Collective
RECYCLING BICYCLES, BUILDING COMMUNITIES
Mission:
●Environmental
○To promote cycling as an effective
and sustainable form of
transportation and recreation, and
as a cornerstone of a cleaner,
healthier, and safer society.
●Humanitarian
○The Collective provides refurbished
bicycles and educational programs
to the community focusing on
children, low to moderate income
households, refugees, people
experiencing homelessness and
housing insecurity, and individuals
recovering from substance abuse.
What we do: Simply
Sell affordable refurbished bicycles
Give away free bicycles to those in need
Provide Do-It-Yourself repair space and
tools
Offer a professional service center
Teach bicycle mechanics through classes
and volunteer work
Accept and recycle donated bicycles and
parts
Community Impact:
With a broad range of partners, the Bicycle Collective identifies critical local needs & develops creative solutions
New Collective Hub:
The Highest Functioning Community Bicycle Shop in America
Granary Location:
-Seamless alignment with 9 Line path, connecting east and west SLC
-Centrally located to partner homelessness and workforce agencies
-2 blocks from Trax stop, 1 block from bus stop
-Immediately across the street from Fleet Block
-Adjacent to thousands of entitled, permitted, and recently constructed housing units –both market rate and affordable
Thank you for your ongoing support!
Unique Hybrid Business Model
3
4
1
2
Receive Donation of Bikes
and Components
General public, Police Departments,
UTA, Bike manufacturers, Retail
outlets
Refurbish
Bikes refurbished by full-time and
volunteer technicians
Sell Affordable Bikes and
Components
Sold directly via 4 Utah-based
locations and web store encouraging
ecological transportation and
affordable transportation
Donate Bikes
Provide means of transportation for
those who need it the most
Strategic Shift:
Expand Products and Remove Sales Barriers
●2020
○Launched campaign to build new hub and statewide headquarters
○Diversified revenue streams with onset of COVID-19
■Opened service & repair operations
■Launched limited on-line parts & component sales (eBay)
○Shifted programming online
○Offered healthcare to full-time employees
■Supported by a capacity building grant from Ray & Tye Noorda Foundation
●2021
○Created & produced industry’s first youth video series
○Refreshed brand and logo to expand appeal & recognition
■Introduced branded merchandise
○Expanded sales opportunities via omni channel digital platform
■Expanded, integrated online (Shopify) and in-store sales
●2022
○Use our digital presence not only to sell pre-owned bikes and parts, bike accessories and branded
merchandise online, but to grow awareness to encourage visits to all our community bike shops.
○Increase awareness of campaign to raise funds for the new Salt Lake City hub (900 S and 325 West).
Bicycle Collective New Headquarters
Virtual Tour
HTTPS://WWW.BOWENSTUDIOS-VT.COM/BICYCLECOLLECTIVE/