Transmittal - 8/2/2022 (2)
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: July 26, 2022
Dan Dugan, Chair
FROM: Lorena Riffo-Jenson, Deputy Director, Department of Economic Development
Lorena.riffojenson@slcgov.com
SUBJECT: Economic Development Revolving Loan Fund (EDLF) – Kalo Clinical Research
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
$262,963.61 loan to Kalo Clinical Research.
BUDGETIMPACT: $262,963.61 from the Economic Development Revolving Loan Fund
BACKGROUND/DISCUSSION: On July 7, 2022, a loan request from Kalo Clinical Research
was presented to the EDLF Loan Committee for review and discussion. Kalo Clinical Research
brings diversity to clinical research by focusing on minority communities in drug trials and
studies.
Basic Loan request
Business Name: Kalo Clinical Research
Address: 82 1100 E Suite 402
Loan Amount Requested: $262,963.61
Loan Term: 7 years
Interest Rate: 7.25%
Use of Funds: Working Capital, Capacity
Loan Type: Expansion
Department of Economic Development staff recommend approval of Kalo Clinical Research’s
request for a $262,963.61 loan.
8/02/2022
8/02/2022
Lisa Shaffer (Aug 2, 2022 09:23 MDT)
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
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 May 9, 2022, the EDLF available
fund balance is: $11,882,389.32
2. The outstanding loan balance for the EDLF fund is: $3,103,389.32
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: Resolution and Terms Sheet
LOAN TERM SHEET
Applicant: Kalo Clinical Research
Address: 82 S 1100 E Suite 402
Proposed Loan Terms
Loan Amount: $262,963.61
Loan Terms: 7 Years
Interest Rate Calculation Prime Interest Rate at time of application 1/11/22: 3.25%
EDLF Charge: 8%
Less Discount: 4%
Priority Area
Woman Owned,
Ethnic Minority
Final Interest Rate: 7.25%
Use of Funds: Working Capital, Capacity for growth/expansion
Business Type: Established Business
Collateral and Guarantees: Commercial Real Estate, Vehicles
Personal Guarantees: Isabella Johnson, Floyd Johnson
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 $262,963.61 loan for Kalo Clinical Research 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 $262,963.61 loan to Kalo Clinical Research, a limited liability
company and a local business located at 82 South 1100 East, Suite 402, 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