Transmittal - 7/12/2022DEPARTMENT of ECONOMIC DEVELOPMENT
ERIN MENDENHALL
MAYOR
BEN KOLENDAR
DIRECTOR
CITY COUNCIL TRANSMITTAL
_______________________ Date Received: ___________
Lisa Shaffer, Chief Administrative Officer Date sent to Council: ___________
__________________________________________________________________
TO: Salt Lake City Council DATE: Ju ly 6, 2022
Dan Dugan, Chair
FROM: Benjamin Kolendar, Director , Department of Economic Development
SUBJECT: Economic Development Revolving Loan Fund (EDLF) – Chip Cookies, LLC.
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 $350,000 loan to Chip Cookies, LLC.
BUDGET IMPACT: $350,000 from the Economic Development Revolving Loan Fund
BACKGROUND/DISCUSSION: On June 16, 2022, a loan request fro m Chip Cookies, LLC.
was presented to the EDLF Loan Committee for review and discussion. Chip Cookies, LLC. will be
expanding their current production and administrative operations.
Basic Loan request
Business Name : Chip Cookies, LLC.
Address: 4752 W California Ave, A100
Loan Amount Requested: $350,000
Loan Term: 7 years
Interest Rate: 7.25%
Use of Funds: Leasehold Improvements, Furniture, Fixtures, and Equipment
Loan Type: Existing Business
The EDLF Loan Committee recommends approval of the Chip Cookies, LLC. loan request of
$350,000 to the City Council.
7/12/2022
7/12/2022
Lisa Shaffer (Jul 12, 2022 11:04 MDT)
EDLF Loan Committee Structure
The committee is comprised of nine (9) members, consisting of representatives of the following
City departments or community industries.
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
Recommendation
The Department of Economic Development and the EDLF Loan Committee recommend approval
of the Chip Cookies, LLC. loan request. The loan application has been through a thorough process
consisting of a pre-screening, underwriting analysis and economic impact statement, and DED
and the Loan committee have concluded that Chip Cook ies, LLC:
• Meets the loan program requirements
• D emonstrates financial strength and the ability to meet de bt service
• Demonstrates a positive economic impact through community investment, the retention of
125 jobs and creation of 200 jobs, business and real estate expansion at their current S alt
Lake City locatio n.
Upon review, the Chip Cookies, LLC. 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
EDLF Loan Portfolio as of July 6, 2022
EDLF available fund balance is: $11,034.639.32
The total amount of outstanding loans is: $4,016,240.85
Attachments:
A. Resolution
B. Loan Term Sheet
SALT LAKE CITY ORDINANCE
No. _____ of 2022
(Ordinance approving a $350,000 loan for Chip Cookies, LLC., at 4752 W California Ave, A100
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, th e 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 $3 50,000 loan to Chip Cookies, LLC., a local business located at
4752 W California Ave, A100.
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
LOAN TERM SHEET
Applicant : Chip Cookies, LLC
Address : 4752 W California Ave, A100
Proposed Loan Terms
Loan Amount: $350,000
Loan Terms: 7 Years
Interest Rate Calculation Prime Interest Rate: 3.25%
EDLF Charge: 8%
Less Discount: 4%
• Priority Area
• Woman Owned
Interest Rate: 7.25%
Use of Funds : Leasehold Improvements, Furniture, Fixtures and Equipment
Business Type: Existing Business
Collateral and Guarantees : Equipment
Personal Guarantees: Sean Wilson, Sarah Wilson
Conditions for Closing: NA