007 of 2022 - Loan Amendment for West End LLCREDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Term Sheet Amendment No. 1 for Loan to West End LLC
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY
OF SALT LAKE CITY APPROVING A FIRST AMENDED TERM SHEET FOR A LOAN TO
WEST END LLC FOR A COMMERCIAL DEVELOPMENT PROJECT LOCATED AT
APPROXIMATELY 740 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
(the “Act”).
WHEREAS, on October 10, 2019, in accordance with the RDA Loan Program (the “Program”),
the RDA Board of Directors (the “Board”) approved Resolution R-19-2019 allocating the funding
and approving preliminary terms of a loan to West End LLC, a Utah limited liability company (the
“Developer”) in connection with a commercial development called West End Development which
includes the adaptive reuse of two warehouses (the “Project”) on approximately one acre of
property located at approximately 740 West 900 South (the “Property”).
WHEREAS, the Program permits an extension of the overall loan term from the standard five (5)
year term to a maximum of ten (10) years through a preauthorized loan extension, provided that
the interest rate increases by 2% during the extension.
WHEREAS, the Developer has requested preauthorization to extend the loan term to 10 years,
with the requisite 2% interest rate increase for the final 5 years of the term, in accordance with the
Program.
WHEREAS, on May 5, 2022, the RDA Finance Committee reviewed a proposed amendment to
the loan terms previously approved by the Board.
WHEREAS, based on the RDA Finance Committee’s recommendations, the RDA staff
recommends the attached set of amended terms (the “Amended Term Sheet”) for the Project 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 that it approves the terms outlined in the Amended 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 Amended Term Sheet, and
incorporating such other terms and agreements as recommended by the City Attorney’s office.
7 of 2022
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this
____ day of _________________, 2022.
_________________________________
Ana Valdemoros, Chair
Approved as to form: __________________________________
Salt Lake City Attorney’s Office
Sara Montoya
Date:____________________________
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Attest:
________________________
City Recorder
10th May
May 18, 2022
Ana Valdemoros (May 25, 2022 19:13 MDT)
Erin Mendenhall (Jun 7, 2022 16:33 MDT)
4
Cindy Trishman (Jun 8, 2022 17:12 MDT)
LOAN TERM SHEET
Amendment No. 1
APPLICANT
West End LLC
ADDRESS
Approximately 740 West 900 South
PROJECT
The West End Development is a commercial development that will adaptively reuse and convert
two existing warehouses into commercial uses. The Project will include about 12,500 square feet
of commercial space and public space improvements.
PROPOSED LOAN TERMS
Amount: The loan will be sized to the lower of $3,100,000 or a maximum of 90% of
value as per an as-completed appraisal.
Interest Rate:
RDA Loan Program Base Rate (U.S. Treasury Yield plus
3%) 3.46%
Public Benefit Interest Rate Reduction:
Adaptive Reuse
Public Amenities*
Economic Impact
Transit Alternatives**
Architecture and Urban Design***
Sustainability****
-0.5%
-0.5%
-0.5%
-0.5%
-0.5%
-0.5%
Final Interest Rate (Years 1-5) 0.46%
Final Interest Rate (Years 6-10)***** 2.46%
*To be eligible for this interest rate reduction, the project was required to provide public space and
improvements along the midblock alley.
**To be eligible for this interest rate reduction, the project was required to provide employee shower, locker,
and bicycle facilities as part of their overall development.
***To be eligible for this interest rate reduction, the project went through and received approval through an
RDA Design Review process.
****To be eligible for this interest rate reduction, the project was required to implement sustainability
features as approved by the RDA.
***** The option to extend the loan term requires an interest rate increase of 2% at the 5-year extension.
Interest Accrual: Interest shall accrue during construction beginning upon the first
disbursement of funds.
Term: 5 years, with a preauthorized 5-year extension for a total preauthorized term of 10
years.
Amortization: 20 years
Disbursement: Loan proceeds shall be disbursed through construction draws. 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 as documented by the cost certification.
Expenses: Applicant will pay all loan expenses and closing costs, including title
insurance.
Recourse: The loan shall be full recourse before project stabilization, converting to
nonrecourse upon project stabilization.
COLLATERAL AND GUARANTEES
Personal Guarantee: Personal guarantee from Maximilian Coreth.
Lien: A deed of trust lien, recorded in first position, on the Property.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Applicant will complete the following:
RDA approves all terms of the loan.
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.
RDA Resolution 7 of 2022 Loan Amendment for
West End LLC
Final Audit Report 2022-06-08
Created:2022-05-13
By:Thais Stewart (thais.stewart@slcgov.com)
Status:Signed
Transaction ID:CBJCHBCAABAAtg2TZIzWem49cHhS-GPXuTH1h3MvMyvQ
"RDA Resolution 7 of 2022 Loan Amendment for West End LLC"
History
Document created by Thais Stewart (thais.stewart@slcgov.com)
2022-05-13 - 3:15:01 PM GMT
Document emailed to Sara Montoya (sara.montoya@slcgov.com) for signature
2022-05-13 - 3:16:33 PM GMT
Email viewed by Sara Montoya (sara.montoya@slcgov.com)
2022-05-18 - 4:46:09 PM GMT
Document e-signed by Sara Montoya (sara.montoya@slcgov.com)
Signature Date: 2022-05-18 - 4:47:14 PM GMT - Time Source: server
Document emailed to Ana Valdemoros (ana.valdemoros@slcgov.com) for signature
2022-05-18 - 4:47:16 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2022-05-19 - 7:53:14 AM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2022-05-20 - 5:24:31 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2022-05-22 - 6:15:19 AM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2022-05-23 - 5:25:23 PM GMT
Email viewed by Ana Valdemoros (ana.valdemoros@slcgov.com)
2022-05-26 - 1:13:37 AM GMT
Document e-signed by Ana Valdemoros (ana.valdemoros@slcgov.com)
Signature Date: 2022-05-26 - 1:13:52 AM GMT - Time Source: server
Document emailed to Erin Mendenhall (erin.mendenhall@slcgov.com) for signature
2022-05-26 - 1:13:54 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-05-26 - 2:59:52 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-05-27 - 4:46:55 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-05-28 - 5:28:41 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-05-29 - 6:08:30 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-05-30 - 3:53:36 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-05-31 - 2:00:00 PM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-06-01 - 4:50:17 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-06-02 - 5:40:42 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-06-03 - 5:17:22 AM GMT
Email viewed by Erin Mendenhall (erin.mendenhall@slcgov.com)
2022-06-04 - 3:49:08 AM GMT
Document e-signed by Erin Mendenhall (erin.mendenhall@slcgov.com)
Signature Date: 2022-06-07 - 10:33:47 PM GMT - Time Source: server
Document emailed to Cindy Trishman (cindy.trishman@slcgov.com) for signature
2022-06-07 - 10:33:49 PM GMT
Document e-signed by Cindy Trishman (cindy.trishman@slcgov.com)
Signature Date: 2022-06-08 - 11:12:12 PM GMT - Time Source: server
Agreement completed.
2022-06-08 - 11:12:12 PM GMT