Transmittal - 9/23/2022
REDEVELOPMENT AGENCY of SALT LAKE CITY
SALT LAKE CITY CORPORATION
451 SOUTH STATE STREET, ROOM 118 WWW.SLC.GOV · WWW.SLCRDA.COM
P.O. BOX 145518, SALT LAKE CITY, UTAH 84114-5518 TEL 801-535-7240 · FAX 801-535-7245
MAYOR ERIN MENDENHALL
Executive Director
DANNY WALZ
Director
DATE: September 23, 2022
PREPARED BY: Corinne Piazza, Project Manager
RE: Granary Adaptive Reuse Loan Request for Fisher Brewing
REQUESTED ACTION: Board consideration of a $136,962 forgivable loan to Fisher Brewing from
the Granary District Adaptive Reuse Program
POLICY ITEM: Granary District Adaptive Reuse Program
BUDGET IMPACTS: $136,962 from the Granary District Adaptive Reuse Program fund
EXECUTIVE SUMMARY: The Granary District Adaptive Reuse Program is an RDA program that offers
forgivable loans to help convert vacant and underutilized buildings in the Granary District to a more
productive use (“Program”). Fisher Brewing Company, LLC (“Applicant”) is requesting a $136,962 loan
for an expansion project. They have recently acquired properties adjacent to their current location at 320
West 800 South, and if their loan request is approved, they will use the funding for construction costs
associated with converting these newly acquired buildings into new brewery and taproom space (“Project”).
Please see Attachment A: Site Map for reference.
The Applicant’s Project meets the eligibility requirements of the Program and aligns with the RDA’s goals
for the Granary District Project Area. In addition, the Project aligns with the RDA’s mission and core values
of economic opportunity, equity and inclusion, and neighborhood vibrancy.
This is the second time the Applicant has requested funding from the Program. The RDA previously
awarded Fisher Brewing $75,000 in 2016, and per the terms of the Program, that loan converted into a grant
in 2021. The Program does not prohibit the Applicant from a second round of funding, as this is a separate
project from their first loan. Fisher Brewing opened in February 2017 and has been a successful and growing
addition to the Granary District.
Additionally, per Utah State Code 17-C, the Agency consulted the State Historic Preservation Office
(SHPO) and received notice of their determination that the Project will not adversely affect any historic
properties.
FINANCE COMMITTEE RECOMMENDATION: On Wednesday, July 20, 2022, the Finance
Committee reviewed the loan request and unanimously recommended approval of the funding request as
outlined in Attachment B: Fisher Brewing 2022 Term Sheet & Resolution.
Of note: The original term sheet presented to the Finance Committee had an error and listed the loan
disbursement as being through construction draws. This has been updated to a lump sum disbursement at
closing which is the standard method for Adaptive Reuse loans.
PROJECT DETAILS: An overview of the 1) Project Eligibility, 2) Adaptive Reuse Match Requirement,
and 3) Application Information are as follows:
1. PROJECT ELIGIBILITY:
The Project meets the eligibility requirements found in the Granary District Adaptive Reuse Program Policy
(Resolution No. R-8-2017):
• The Project is located within the Granary District Project Area boundaries at 316-320 West 800
South.
• The Project aligns with the Granary District Redevelopment Plan and other RDA policy.
The mission of the Granary District Adaptive Reuse Program is as follows: The Granary District
Adaptive Reuse Program provides forgivable loans to facilitate the conversion of vacant,
underutilized, or economically challenged buildings for a new and more productive purpose. By
reducing the financial impact of building code requirements, the Program leve rages private
investment to reduce the number of distressed buildings while preserving the neighborhood’s
historical character. In addition, the Program facilitates the implementation of transformative
projects that increase the number of residents living, working, and visiting the Granary District.
The Project will support this mission through the conversion of underutilized buildings to
commercial space occupied by a locally owned business, which will attract visitors, increase the
availability of retail goods and services, and strengthen the commercial vitality of the Granary
District.
• The Applicant has demonstrated the requested loan is necessary for the Project to succeed and
that the request is reasonable.
Program funds will provide critical gap financing, supplementing other sources of funding for the
Project, including loans from First Utah Bank and Preservation Utah, as well as owner equity
contributions. The RDA’s funding is necessary to help ease the financial impact of renovating the
buildings, particularly as construction costs are rising and unforeseen expenses are common in
adaptive reuse projects. Please see Attachment C: Sources and Uses of Funding for further details.
• The requested loan will be used to convert a vacant, underutilized, or economically challenged
building into a commercial use.
The Applicant’s proposed Project is an expansion of Fisher Brewing into two, underutilized
buildings located adjacent to their current facility. The expansion will repurpose these adjacent
buildings into approximately 3,740 square feet of new tavern space and approximately 2,600 square
feet of new brewing area. The Applicant will also add approximately 1,090 square feet of outdoor
dining area. Program funding will be utilized for construction costs associated with building code
requirements, including full electrical, HVAC and plumbing upgrades, as well as new accessible
bathrooms and a fire suppression system.
2. ADAPTIVE REUSE MATCH REQUIREMENT:
The Program is intended to provide a forgivable loan to supplement a project’s existing, secured financing
and equity contributions. Up to $200,000 is available per project, depending on matching funds from other
sources.
The Applicant’s overall project cost is $4,625,206, of which $1,411,206 is appropriated for construction
improvements. Costs are recognized as contributing to the match requirement if they are allocated to site
improvements, environmental remediation, architecture, engineering, or certain construction costs.
Acquisition funds are not recognized as contributing to the match requirement. Staff has evaluated the
Project budget and determined $980,510 of costs that are eligible as a funding match per the parameters of
the Program, as shown in the table below.
ITEM Eligible Match Amount
Site Improvements $24,602
Environmental Remediation -
Architecture & Engineering $64,787
Construction Costs $891,121
TOTAL: $980,510
Program funds must be matched by other investment at escalating ratios, as shown in the table below. Based
on the Program’s stepped matching requirements and the eligible costs identified by staff, the Applicant
may apply for a Program loan of $136,962.
3. APPLICANT INFORMATION:
The Applicant includes the four owners of Fisher Brewing: Tim Dwyer, Steven Brown, Thomas Riemondy,
and Kevin Frazier. They have owned and operated Fisher Brewing since 2016. Since opening in 2017,
Fisher Brewing has established itself in the local craft beer community, experiencing growth in sales every
year, except for a dip in sales in 2020 due to the COVID pandemic. As shown in Attachment D: Project
Growth Following Expansion, the Project is anticipated to allow Fisher Brewing to continue growing into
the near future.
ATTACHMENTS:
A. Site Map
B. Fisher Brewing 2022 Term Sheet & Resolution
C. Sources and Uses of Funding
D. Projected Growth Following Expansion
Match Ratio
(Program funds: other funds)
Program
Funds
Matching
Funds Total
1:02 50,000$ 100,000$ 150,000$
1:06 50,000$ 300,000$ 350,000$
1:12 36,962$ 443,548$ 480,510$
TOTAL:136,962$ 843,548$ 980,510$
Program Match Steps
Attachment A: Site Map
EXISTING
PROPOSED
PROJECT
• 2195 sq . ft . brewing area
• 1890 sq . ft . tavern space
• 1800 sq . ft . outdoor din ing
EXPANSION
• Adding 2600 sq . fl . of brewing area
• Adding 3740 sq . fl . of tavern space
• Adding 1090 sq . ft . of ou tdoor dining
Attachment B: Fisher Brewing 2022 Term Sheet & Resolution
REDEVELOPMENT AGENCY OF SALT LAKE CITY
RESOLUTION NO. _______________
Loan to Fisher Brewing Company, LLC
RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT
LAKE CITY APPROVING THE TERM SHEET FOR A LOAN TO FISHER BREWING COMPANY,
LLC FOR A GRANARY DISTRICT ADAPTIVE REUSE PROJECT LOCATED AT
APPROXIMATELY 316 WEST 800 SOUTH
WHEREAS, the Redevelopment Agency’s (RDA’s) Board of Directors (Board) adopted the
Granary District Adaptive Reuse Program Policy, Resolution 8-2017, to encourage the adaptive reuse of
existing buildings in the Granary District Project Area by reducing the economic impact of building code
requirements.
WHEREAS, Fisher Brewing Company, LLC, a local brewery located in the Granary District
Project Area (the Developer), is repurposing two underutilized buildings located adjacent to their current
facility. These repurposed spaces will be turned into new brewery and taproom space (the Project).
WHEREAS, the Developer has applied for a loan under the Granary District Adaptive Reuse
Program Policy to assist with the Project.
WHEREAS, on July 20, 2022, the RDA Finance Committee reviewed the loan application and
provided a positive recommendation for the attached set of terms (Term Sheet).
WHEREAS, the RDA staff recommends approval of the loan to the Developer outlined in the
Term Sheet for the Project.
NOW, THEREFORE, BE IT RESOLVED by the Board that it approves the loan outlined in
the Term Sheet attached to this resolution, 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 Term Sheet, and incorporate
such other terms and agreements as recommended by the City Attorney’s office.
Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ____ day
of , 2022.
_________________________________
Ana Valdemoros, Chair
The Executive Director:
____ does not request reconsideration
____ requests reconsideration at the next regular Agency meeting.
________________________________
Erin Mendenhall, Executive Director
Approved as to form:
__________________________________
Salt Lake City Attorney’s Office
Attest:
________________________
City Recorder
EXHIBIT A: APPROVED LOAN TERM SHEET
Fisher Brewing Company, LLC
BORROWER
Fisher Brewing Company, LLC
PROPERTY
Approximately 316 West 800 South
PROJECT DESCRIPTION
The Project is an expansion of the existing Fisher Brewing location into two underutilized buildings
located adjacent to their current facility. The expansion will repurpose these adjacent buildings into
approximately 3,740 square feet of new tavern space and approximately 2,600 square feet of new brewing
area. The Project will also add 1,090 square feet of outdoor dining area.
PROPOSED LOAN TERMS
• Amount: $136,962
• Interest Rate: 0%, if all Conditions of the Loan (defined below) are met
• Term: 5 years, commencing on execution of the loan documents
• Amortization Period: N/A
• Repayment: No payments if all Conditions of the Loan are met
• Disbursement: Loan proceeds shall be disbursed in one lump sum at closing
• Loan Forgiveness: Principal shall be forgiven in equal annual installments over the Term if all
Conditions of the Loan are met
• Default Rate: If the Project fails to meet Conditions of the Loan during the Term, Developer may
be required to repay all or a portion of the loan as detailed in the loan agreement. Interest shall be
due on the portion deemed to be repaid, accrued as of the date funds were dispersed, at a default
interest rate of 14%.
CONDITIONS OF THE LOAN
• The loan funds shall be used for eligible costs only. Eligible costs are defined in Section 3.2 the
Granary District Adaptive Reuse Loan Program Policy, R-8-2017.
• The Project shall be completed as intended within the Term.
• The Project shall operate as intended (neighborhood commercial) over the Term.
• The Project shall remain in good financial and legal standing over the Term.
COLLATERAL AND GUARANTEES
• Security: the loan shall be secured by unconditional personal payment guarantees from the
owners of Fisher Brewery Company, LLC: Tim Dwyer, Steven Brown, Thomas Riemondy, and
Kevin Frazier.
CONDITIONS FOR LOAN CLOSING
Prior to loan closing, the Developer and RDA will complete the following:
• Developer will secure and provide RDA evidence of sufficient sources of Project financing.
Sources of financing must equal the total Project cost.
• Developer will secure and provide RDA evidence of sufficient sources of matching Project
financing by other investments at the ratio of 1:12, as required by Section 4.2 of the Granary
District Adaptive Reuse Loan Program Policy, R-8-2017.
• Developer must obtain all required City approvals.
• Developer will provide evidence of insurance in such amounts and with such coverage as deemed
necessary by the RDA for the Project.
• Developer and RDA will execute loan documents (e.g. promissory notes, guarantees, loan
agreements, security documents) as deemed necessary by the RDA and its legal counsel.
• Such other terms as recommended by the RDA’s legal counsel and staff.
Attachment C: Sources & Uses of Funding
Fisher Brewing Expansion
Sources Uses
Cash from Applicant $ 509,244 Property purchase $ 2,300,000
First Utah Bank Loan $ 3,744,000 Refinance 320 W. 800 S. $ 444,000
Preservation Utah $ 235,000 Brewing equipment $ 350,000
RDA Adaptive Reuse Loan $ 136,962 Construction Improvements $ 1,411,206
Project contingency $ 120,000
Total Source of Funds $ 4,625,206 Total Uses of Funds $ 4,625,206
Attachment D: Projected Growth Following Expansion
A
LC.RDA