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Proposed Resolution - 9/23/2022REDEVELOPMENT AGENCY OF SALT LAKE CITY RESOLUTION NO. _______________ Amending Loan Terms and Approving an Exception to the Loan Policy for a Loan to Bicycle Collective RESOLUTION OF THE BOARD OF DIRECTORS OF THE REDEVELOPMENT AGENCY OF SALT LAKE CITY APPROVING AN AMENDED TERM SHEET AND AN EXCEPTION TO THE LOAN POLICY FOR A LOAN TO THE BICYCLE COLLECTIVE FOR A COMMERCIAL DEVELOPMENT PROJECT LOCATED AT APPROXIMATELY 901 SOUTH GALE STREET WHEREAS, the Redevelopment Agency of Salt Lake City (“RDA”) was created to transact the business and exercise the powers provided for in the Utah Community Reinvestment Agency Act. WHEREAS, the RDA has a revolving loan fund to provide construction loans for projects located in its project areas that it manages in accordance with the RDA Loan Program Policy (“Policy”). WHEREAS, the Policy provides that the base interest rate for loans will be set at the closing of the loan. WHEREAS, on May 10, 2022, in accordance with the Policy, the RDA Board of Directors (the “Board”) approved resolution R-6-2022 allocating the funding and approving terms of a loan in the amount of $1,750,000 to Bicycle Collective, a Utah nonprofit entity (the “Developer”), in connection with the a commercial development to house its headquarters (the “Project”) on the property consisting of approximately 0.26 acres located at approximately 901 South Gale Street. WHEREAS, the Developer has requested to increase the loan amount to $2,250,000 and requested an exception to the Policy to set the base interest rate as the rate of 5.66% as reflected in Exhibit A: Term Sheet. WHEREAS, on September 21, 2022, the RDA Finance Committee (“Committee”) reviewed Developer’s requested changes to the loan terms and interest rate exception. WHEREAS, based on the Committee’s recommendations, the RDA staff recommends the Board approve the attached amended set of terms (the “Term Sheet”) for the loan to the Developer, as borrower, for the Project. Additionally, the RDA staff recommends approving an exception to the Policy to set the base interest rate at the rate stated in the Term Sheet and such exception shall be valid for six months from the date of this resolution. NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Redevelopment Agency of Salt Lake City that it approves the loan outlined in the Term Sheet attached hereto, subject to revisions that do not materially affect the rights and obligations of the RDA hereunder. The Board authorizes the waiver of the Policy to set the base interest rate at the rate stated on the Term Sheet, which waiver shall be valid for six months from the date of this ATTACHMENT F: RESOLUTION resolution. The Board authorizes the Executive Director 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. Passed by the Board of Directors of the Redevelopment Agency of Salt Lake City, this ____ day of October, 2022. _________________________________ Ana Valdemoros, Chair Approved as to form: __________________________________ Salt Lake City Attorney’s Office Allison Parks Date:____________________________ The Executive Director: ____ does not request reconsideration ____ requests reconsideration at the next regular Agency meeting. ________________________________ Erin Mendenhall, Executive Director Attest: ________________________ City Recorder September 23, 2022 EXHIBIT A: LOAN TERM SHEET APPLICANT Bicycle Collective (“Applicant”), a nonprofit entity ADDRESS Property located at approximately 901 S Gale Street PROPOSED LOAN TERMS • Amount: $2,250,000 • Eligible Uses: Construction costs • Interest Rate: RDA Loan Program Base Rate (U.S. Treasury Yield plus 3%) 5.66%* Public Benefit Interest Rate Reduction: • Public Amenities** • Transit Alternatives*** • Architecture and Urban Design**** • Sustainability***** -0.5% -0.5% -0.5% -0.5% Final Interest Rate****** 3.66% RDA staff will confirm the Project qualifies for the applicable interest rate reductions. Any changes to the project could result in changes to the interest rate reductions: * Base interest rate shall be locked at this 5.66%, as opposed to the rate at closing. This rate is based on the U.S. Treasury Yield Curve Rate, as determined by the term of the loan, and shall be valid for 6 months. **To be eligible for this interest rate reduction, the project will include a public art amenity ***To be eligible for this interest rate reduction, the project will be required to provide employee shower, locker, and bicycle facilities as part of their overall development. ****The project participated and received approval through an RDA Design Review process. *****The project will be an all-electric building that will include rooftop solar and the Project has been designed to a LEED-Silver equivalent standard. ******The final interest rate will be based on 5.66% base interest minus eligible interest rate reductions. • Term: 5 years • Amortization: 20 years • Payments: Hard repayments with balloon payment due at the end of the term. • Security: A first position lien on the property. • Disbursement: Loan proceeds shall be disbursed through construction draws. CONDITIONS FOR LOAN CLOSING Prior to loan closing, the Applicant will complete the following: • RDA approves all terms of the loan. LOAN TERM SHEET Bicycle Collective -RDA LOAN RDA LOAN PROGRAM • Obtain all required City approvals. • Execute loan documents (e.g. promissory notes, loan agreements, security documents, and guarantees) as deemed necessary by the RDA and its legal counsel. • Receive approval from the RDA and its legal counsel of all matters pertaining to title, legality of the loan, and the legality, sufficiency, and the form and substance of all documents that are deemed reasonably necessary for the loan transaction. • Provide evidence of insurance in such amounts and with such coverage as deemed necessary by the RDA for the Property. • Such other terms as recommended by the RDA’s legal counsel and staff. OTHER CONDITIONS • The Project shall operate as the intended use over the term. • The Project shall remain in good financial and legal standing over the term.