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Proposed Ordinance - 8/2/2022 (2)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 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