Transmittal - 5/20/2022DEPARTMENT of ECONOMIC DEVELOPMENT
ERIN MENDENHALL
MAYOR
BEN KOLENDAR
DIRECTOR
CITY COUNCIL TRANSMITTAL
_______________________ Date Received: 5/20/2022
Lisa Shaffer, Chief Administrative Officer Date sent to Council: 5/20/2022
__________________________________________________________________
TO: Salt Lake City Council DATE: May 17, 2022
Dan Dugan, Chair
FROM: Benjamin Kolendar, Director, Department of Economic Development
SUBJECT: Economic Development Revolving Loan Fund (EDLF) – Buddies, INC.
STAFF CONTACTS:
Roberta Reichgelt, Business Development Director, Roberta.reichgelt@slcgov.com
Peter Makowski, Project Manager, peter.makowski@slcgov.com
DOCUMENT TYPE: Loan Approval
RECOMMENDATION: Recommend approval of $150,000 loan to Buddies, INC.
BUDGET IMPACT: $150,000 from the Economic Development Loan Fund
BACKGROUND/DISCUSSION: On May 5, 2022, a loan request from Buddies, INC. was
presented to the EDLF Loan Committee for review and discussion. Buddies, INC. will be the
owner and operator of the current concessions and rides at Liberty Park.
Basic Loan request
Business Name: Buddies, INC.
Address: 1150 E 600 S
Loan Amount Requested: $150,000
Loan Term: 7 years
Interest Rate: 7.25%
Use of Funds: Equipment, Inventory
Loan Type: Start Up
The EDLF Committee recommends approval of the Buddies, INC loan request of $150,000 to the
City Council.
Lisa Shaffer (May 20, 2022 10:15 MDT)
EDLF Loan Committee Structure
The committee is comprised of nine (9) members.
City Employees:
1. Community and Neighborhoods Finance
2. Mayor’s Office
3. Employee at large
4. Housing Stability
5. Economic Development
Community Volunteers:
6. Business Advisory Board (BAB) member
7. Banker
8. Community lender
9. Business mentor
DED Staff Recommendation
The Department of Economic Development recommends approval of Buddies, INC loan request
as the application goes through a thorough process consisting of a pre-screening, underwriting
analysis and economic impact statement.
Upon review, the Buddies INC, loan meets the following goals of the Economic Development Loan
Fund as stated in the EDLF program guidelines:
• Increasing employment opportunities
• Stimulating business development
• Encouraging private investment
• Enhancing neighborhood vitality
• Boosting commercial enterprise
This loan will also assist in the creation of 10 new jobs in the next year and retention of 7 current
jobs.
EDLF Loan Portfolio as of May 9, 2022
EDLF available fund balance is: $11,882,389.32
The total amount of outstanding loans is: $3,103,389.32
Attachments:
A. Resolution
B. Loan Term Sheet
SALT LAKE CITY ORDINANCE
No. _____ of 2022
(Ordinance approving a $150,000 loan for Buddies, Inc., at 1150 East 600 South from the
Economic Development Loan Fund)
WHEREAS, Salt Lake City Corporation’s (“City”) Economic Development Loan Fund
(“EDLF) is a program to stimulate local business development, encourage private investment,
enhance neighborhood vitality, and boost commercial enterprise in Salt Lake City.
WHEREAS, the EDLF is administered by the Department of Economic Development
(“DED”) and loan applications are first prescreened by DED staff, and then reviewed by the
EDLF Loan Committee.
WHEREAS, the EDLF Loan Committee and DED staff recommend the approval of the
attached loan term sheet for a $150,000 loan to Buddies, Inc., a local business located at 1150
East 600 South.
NOW, THEREFORE, be it ordained by the City Council of Salt Lake City, Utah, that:
SECTION 1. Loan Approval. The City Council approves the loan outlined in the Term
Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations
of the City hereunder. The City Council authorizes the Mayor 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.
SECTION 2. Effective Date. This ordinance shall become effective on the date of its first
publication.
Passed by the City Council of Salt Lake City, Utah, this ______ day of
_____________________, 2022.
Dan Dugan, Council Chair
ATTEST AND COUNTERSIGN:
______________________________
CITY RECORDER
Transmitted to Mayor on _______________________.
Mayor's Action: _______Approved. _______Vetoed.
______________________________
MAYOR
______________________________
CITY RECORDER
(SEAL)
Bill No. ________ of 2022.
Published: ______________.
APPROVED AS TO FORM
Salt Lake City Attorney’s Office
Date:
Sara Montoya, City Attorney
May 19, 2022
LOAN TERM SHEET
Applicant: Buddies, INC
Address: 1150 E 600 S
Proposed Loan Terms
Loan Amount: $150,000
Loan Terms: 7 Years
Interest Rate Calculation Prime Interest Rate: 3.25%
EDLF Charge: 8%
Less Discount: 4%
• Priority Area
• Woman Owned,
• Ethnic Minority
Interest Rate: 7.25%
Use of Funds: Equipment, Inventory
Business Type: Start Up
Collateral and Guarantees: Equipment, Inventory
Personal Guarantees: Lara Haddad
Conditions for Closing
• Signed Articles of Incorporation
• Salt Lake City Business License
• Salt Lake City Business Address
• Creation of Business Entity