Transmittal - 8/11/2022
DEPARTMENT of ECONOMIC DEVELOPMENT
ERIN MENDENHALL
MAYOR
LORENA RIFFO-JENSON
INTERIM DIRECTOR
CITYCOUNCIL TRANSMITTAL
_______________________ Date Received: ___________
Lisa Shaffer, Chief Administrative Officer Date sent to Council: ___________
__________________________________________________________________
TO: Salt Lake City Council DATE: August 9, 2022
Dan Dugan, Chair
FROM: Lorena Riffo-Jenson, Interim Director, Department of Economic Development
Lorena.riffojenson@slcgov.com
SUBJECT: Economic Development Revolving Loan Fund (EDLF) – Kahve Cafe
STAFF CONTACTS:
Roberta Reichgelt, Business Development Director, Roberta.reichgelt@slcgov.com
William Wright, Project Manager, William.wright@slcgov.com
DOCUMENT TYPE: Loan Approval
RECOMMENDATION: The EDLF Loan Committee recommends approval of a $50,000
loan to Khave Cafe.
BUDGET IMPACT: $50,000 from the Economic Development Revolving Loan Fund
BACKGROUND/DISCUSSION: On August 4, 2022, a loan request from Kahve Cafe was
presented to the EDLF Loan Committee for review and discussion. Kahve Cafe is a Turkish style
café and wholesaler of baklavas and Mediterranean dips.
Basic Loan request
Business Name: Kahve Cafe
Address: 57 S 600 E
Loan Amount Requested: $50,000
Loan Term: 7 years
Interest Rate: 7.25%
Use of Funds: Working Capital, Staffing
Loan Type: Start-up
Department of Economic Development staff recommend approval of Kahve Cafe’s request for a
$50,000 loan.
Applicants of The Economic Development Loan Fund (EDLF) Program go through a thorough
application process consisting of a pre-screening, underwriting analysis, and economic impact
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statement. Only after the loan applicant goes through these processes is the loan recommended to
be reviewed by the Loan Committee members. Upon thorough review by the Loan Committee
members, a recommendation is made before the loan request is transmitted by the Mayor for
Council to receive the recommendation for final approval. Because the Loan Committee review
process must adhere to the Utah Open and Public Meetings Act, DED’s staff has worked closely
with the City Attorney’s Office to ensure that applicants’ information is protected and at the same
time a public and transparent process is followed.
EDLF loans must meet the goals of the Economic Development Loan Fund as stated in the EDLF
program guidelines. This loan meets the EDLF program guidelines in the following areas:
Increase employment opportunities
Stimulate business development and expansion
Encourage private investment
Promote economic development
Enhance neighborhood vitality
Boost commercial enterprise
This loan will assist in the creation of 6 new jobs in the next year and retention of 6 current jobs.
DED staff brings these loans to the EDLF Committee to provide a recommendation. This loan was
recommended by the EDLF Committee to the City Council for approval.
EDLF Loan Balances
1. As reported from The Finance Department on June 30, 2022, the EDLF cash
balance is: $9,173,985
2. The outstanding loan balance for the EDLF fund as of July 22, 2022:
$3,201,344.94
EDLF Loan Committee
There is a total of nine (9) EDLF Committee members.
City Employees:
Community and Neighborhood Finance
Mayor’s Office
Employee at Large
Housing Stability
Economic Development
Community Volunteers:
Business Advisory Board (BAB) member
Banker
Community Lender
Business Mentor
Attachments: Terms Sheet and Ordinance
LOAN TERM SHEET
Applicant: Kahve Cafe, LLC
Address: 57 S 600 E
Proposed Loan Terms
Loan Amount: $50,000
Loan Terms: 7 Years
Interest Rate Calculation: Prime Interest Rate: 3.25% (at time of application)
EDLF Charge: 8%
Less Discount: 4%
Woman Owned
Final Interest Rate: 7.25%
Use of Funds: Working Capital, Staffing, Payroll
Business Type: Start-up
Collateral and Guarantees: Real Estate, Vehicles, Equipment, Inventory
Personal Guarantees: Elif Ekin
Conditions for Closing: Obtain all City approvals, execute all loan documents as deemed necessary by
City legal counsel and DED staff, such other terms as recommended by City legal counsel and DED staff
SALT LAKE CITY ORDINANCE
No. _____ of 2022
(Ordinance approving a $50,000 loan for Kahve Café, LLC 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”); 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 $50,000 loan to Kahve Café, LLC, a limited liability company and
a local business located at 57 South 600 East, Salt Lake City, Utah.
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
August 9, 2022